The landscape of personal injury claims in England and Wales has been significantly shaped by the concept of fundamental dishonesty. This isn’t just a legal buzzword; it is a critical provision that allows courts to dismiss an entire claim, even if parts of it are genuine. This blog will examine the definition, the law, and the consequences of a finding of fundamental dishonesty.

What Counts as Fundamental Dishonesty

While the term fundamental dishonesty is not explicitly defined in legislation, judicial decisions have clarified its scope. Introduced by the Criminal Justice and Courts Act 2015 (CJCA 2015) and reflected in the Civil Procedure Rules (CPR), it covers more than outright fraudulent claims.

Courts have interpreted it to include:

1. Wholly fabricated claims

2. Deliberate exaggeration of genuine injuries

3. False or exaggerated claims for special damages (e.g. loss of earnings or care costs)

The test used for assessing dishonesty was established by the Supreme Court’s ruling in Ivey v Genting Casinos (UK) Ltd, which focuses on the claimant’s knowledge and intentions – did they know what they were doing was dishonest, and was that dishonesty fundamental to the claim?

The Legislative Hammer: Section 57 of the CJCA 2015

The key legal provision is Section 57 of the CJCA 2015. This section gives courts the power to dismiss an entire personal injury claim if the claimant is found to have been fundamentally dishonest in relation to the primary claim or a closely related claim.

What is a ‘related claim?’ This refers to a claim made by a different individual that stems from the same incident as the primary claim.

Crucially, this dismissal is mandatory unless the claimant can convince the court that doing so would result in substantial injustice.

This power ensures that claimants who attempt to deceive the court face severe consequences, thereby protecting the system from abuse.

Consequences of a Dishonesty Finding

The repercussions for a claimant found to be fundamentally dishonest are far-reaching and financially damaging:

1. Loss of the entire claims – the most direct consequence is the dismissal of the whole claim, meaning the claimant receives absolutely no compensation, even for the legitimate parts
2. Loss of QOCS protection – claimants typically benefit from Qualified One-Way Costs Shifting (QOCS), which generally shields them from paying the defendant’s legal costs if they lose. A finding of fundamental dishonesty removes this protection, making the claimant liable for the defendant’s potentially large legal bill.
3. Recording of damages – the court is required to record the amount of damages the claimant would have received had the claim not been dismissed. This figure is important for subsequent proceedings, such as assessing costs or even potential contempt of court charges.

In short, attempting to be dishonest in a personal injury claim is a high-stakes gamble that almost always leads to a total loss. Transparency and honesty are essential throughout the legal process.

If you would like to discuss a personal injury claim and or fundamental dishonesty, please contact Richard Harriman by email or on 01494521301.