Admiral proved fundamental dishonesty case to recover legal costs under new rules
Admiral has won a significant victory against a dishonest whiplash claim that means the claimant will have to pay all Admiral’s costs for defending the case.
The claimant had claimed for whiplash injuries after an Admiral policyholder had driven into the rear of their car after they had performed an emergency stop to avoid a collision with a motorbike.
However, Admiral’s customer was adamant no contact took place.
The judge hearing the case agreed that no collision had occurred and ordered that the claimants should pay Admiral’s costs of £6,000, but under qualified one-way costs shifting (QOCS) rules Admiral needed to prove in a further hearing that the claimant had been fundamentally dishonest.
What is qualified one-way cost shifting?
QOCS was introduced so that claimants would not be put off taking legal action against companies because of the fear of large legal fees should they be unsuccessful in their claim.
Under the new rules a successful defendant can no longer recover costs from the claimant, except in certain circumstances, one of which is if the claim is proved to be fundamentally dishonest.
Admiral was successful in its claim of fundamental dishonesty and the claimant was forced to pay all costs associated with the case.
Admiral head of claims Lorna Connelly said: “We are understandably delighted with this significant ruling. The third party involved brazenly lied about the circumstances, putting our customer through undue stress and inconvenience, so we were determined to prove they were fundamentally dishonest.
“We hope it sends a warning that a dishonest individual could have a very significant cost liability should they pursue a case against us, as the judiciary are willing to make findings of fundamental dishonesty. It will also hopefully make solicitors think twice before bringing these cases to court in the first place.”