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Fundamental Dishonesty in Personal Injury Claims

In personal injury claims honesty is central to the integrity of the Court process. While the vast majority of Claimants bring legitimate claims following genuine accidents, there has been an increasing focus in recent years on allegations of fundamental dishonesty.

What is fundamental dishonesty?

Fundamental dishonesty is a legal finding made by the Court where a Claimant is found to have been dishonest in a way that is serious enough to affect the claim itself.

It is not limited to entirely fraudulent claims, instead, it can also apply where:

a genuine injury is significantly exaggerated
false or inflated financial losses are included
the circumstances of the accident are misrepresented
evidence is deliberately misleading

The key question for the Court is whether the dishonesty goes to the root of the claim, meaning it is substantial enough to undermine the validity of the case as a whole.

How do courts decide if someone has been dishonest?

The modern approach to dishonesty in civil claims is guided by the Supreme Court decision in Ivey v Genting Casinos.

This test requires the Court to consider:

What the Claimant actually knew or believed at the time; and
Whether, by the standards of ordinary decent people, the conduct was dishonest.

Importantly, there is no longer a requirement for the Claimant to appreciate that their conduct was dishonest in a legal or moral sense. The assessment is objective based on their actual state of knowledge or belief.

The burden of proof is on the balance of probabilities, meaning the Court must decide whether it is more likely than not that dishonesty occurred.

Where can fundamental dishonesty arise?

A finding of fundamental dishonesty can be made in relation to:

Liability – how the accident happened and who was at fault
Quantum – the extent of injuries and financial losses claimed
Both the above – in some cases dishonesty may affect all aspects of the claim

Even where an injury is genuine, dishonesty in presenting symptoms, limitations or financial losses can still lead to serious consequences.

The legal consequences: recent statutory framework

The law provides Courts with powerful tools when fundamental dishonesty is established.

Section 57 of the Criminal Justice and Courts Act 2015

Under Section 57, if the Court finds that a Claimant has been fundamentally dishonest, it must dismiss the entire personal injury claim.

This can include even the genuinely recoverable element of the claim. However, the Court retains a limited discretion to allow recovery of damages if the Claimant would suffer “substantial injustice” if the claim were struck out in its entirety.

In practice, this exception is applied narrowly.

Qualified One-Way Costs Shifting (QOCS) and CPR 44.16

Normally, under Qualified One-Way Costs Shifting (QOCS), an unsuccessful Claimant in a personal injury case will not be required to pay the Defendant’s legal costs (subject to exceptions).

However, CPR 44.16 creates an important exception:-

Where fundamental dishonesty is proven, the Defendant may enforce a costs order against the Claimant in full.

This removes the usual protection and can expose a Claimant to significant financial liability for the other side’s costs.

Recent developments and Court approach

Recent case law continues to show that the Courts are willing to take a firm stance where dishonesty is established, particularly where it affects the credibility of the evidence as a whole.

The courts have also emphasised that:

allegations of fundamental dishonesty must be properly pleaded and evidenced
it is a serious finding with significant consequences
it should not be made lightly or used as a routine defence tactic

At the same time, judges remain careful to distinguish between genuine inconsistencies or innocent errors and actual dishonesty. Not every discrepancy will justify a finding of fundamental dishonesty.

Why this matters for Claimants

The consequences of a finding of fundamental dishonesty are severe and may include:

dismissal of the entire claim
loss of otherwise valid compensation
liability for the defendant’s legal costs
potential separate proceedings in extreme cases

For this reason, full transparency and accuracy throughout the claims process is essential.

Fundamental dishonesty is one of the most serious findings a civil Court can make in a personal injury case. While it is intended to deter and address fraudulent or exaggerated claims, it also highlights the importance of clear, honest communication between Claimants and their legal representatives from the outset.

If you have been involved in a personal injury claim and are unsure about what needs to be disclosed or how your evidence may be viewed, it is vital to seek early legal advice to ensure your case is presented accurately and fairly.