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Insurance surgery: Tackling fundamental dishonesty

Stratos Gatzouris considers the implications of the forthcoming obligation on courts to strike out PI claims found to be fundamentally dishonest

On 13 April 2015, s 57 of the Criminal Justice and Courts Act 2015 (CJCA 2015) will come into force. It places an obligation on courts to strike out personal injury claims which are found to be fundamentally dishonest.

What is fundamental dishonesty?

The concept of fundamental dishonesty was introduced by CPR 44.16(1) as an exception to qualified one way costs shifting (QOCS) in personal injury claims. A claimant will not benefit from QOCS if, on application by the defendant, the claimant is found to have been fundamentally dishonest. In such circumstances, an order for costs may be enforced against the claimant.

The term has since been incorporated into section 57 of CJCA 2015 and will apply to all proceedings issued on or after 13 April 2015. 

What does the new law say?

Section 57 places a duty on courts to strike out a personal injury claim, if, on application by the defendant, the court is satisfied on a balance

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