News » Personal injury fraudster found guilty of contempt
Date of News Story:
Friday 17 April 2009 by Jonathan Rayner
In a landmark move against fraudulent personal injury claims, the High Court has found a claimant in contempt of court for exaggerating her injuries. She must now pay her own £125,000 legal bill, a £2,500 fine for contempt and half the defendant’s legal costs.
The claimant, Joanne Kirk, 45, from Preston, Lancashire, had alleged that a road traffic accident in 2001 had led her to contract fibromyalgia, a condition associated with pain in fibrous tissues. She claimed that she was unable to walk more than 10 paces ‘on a good day’ and had to give up work. In January 2005 proceedings were served seeking damages in the region of £800,000. Kirk settled for £25,000 at Stockport County Court in June 2008 when Royal Bank of Scotland (RBS) Insurance, the insurers of the other driver in the accident, did not dispute liability for the accident itself. However, RBS commissioned surveillance video footage from private investigators showing Kirk walking, driving and shopping. RBS applied for permission to bring contempt of court proceedings against Kirk for ‘making false statements in documents verified by statements of truth without an honest belief in the truth of the same.’
The trial took place before Mr Justice Coulson in the Liverpool District Registry from 23-25 March 2009, with judgment given earlier this month. Kirk was found in contempt on two grounds of lying in court documents. The judge ruled she had ‘exaggerated her symptoms to a significant and unconscionable degree’ and could have had no ‘honest belief’ that much of her claim was true. He also pointed to an ‘inexplicable’ gulf between Kirk’s description of her disabilities and the video evidence.
The insurer’s solicitor, Jo Pizzala, a partner at London firm Plexus Law, said she understands these to be the first private contempt proceedings to be brought where a personal injury claimant was accused of exaggerating disabilities. ‘It sends out a strong message that dishonesty will not be tolerated.’
Kate Lotts, specialist claims director at RBS Insurance, said the decision allows insurers to pursue not just their own policyholders, but also fraudulent third parties. ‘Any measure to discourage fraudsters is good news for honest policyholders.’
Forum of Insurance Lawyers president Anthony Hughes, partner at Manchester firm DWF, commended the insurer’s ‘brave decision’ to bring this case. ‘Fraudsters before got just a slap on the wrist.’
John McQuater, president-elect of the Association of Personal Injury Lawyers (APIL) and partner at Doncaster law firm Atherton Godfrey, said: ‘APIL never condones fraud and is confident its members carry out all appropriate checks to filter out dishonest claims. Lawyers weren’t involved in this case until the start of the contempt proceedings.’
SOURCE: LAW GAZETTE
http://www.lawgazette.co.uk/news/personal-injury-fraudster-found-guilty-contempt