Insurance provider Hastings Direct has won the UK’s largest ever fundamental dishonesty case worth £6.6mn.
Hastings Direct head of large and complex loss, Peter Lane, said: “This is a fantastic result and one that has been achieved through great collaboration between the team at Hastings Direct, our panel lawyers Keoghs, and counsel.”
The case of Shaw v Wilde involved a four-and-a-half year investigation following a motorcycle accident where Mr Shaw injured all four of his limbs.
Following an interim payment of £150,000 by Hastings Direct, the claimant sought £6.6mn.
However, investigations by Keoghs discovered that Shaw had not only exaggerated his claims but had actually taken part in a number of extreme sports such as BASE jumping and had also been certified fit for a tandem skydive by his GP.
Additionally, Keoghs surveillance agents recorded Shaw walking 900 meters unaided while carrying his young son in a baby carrier, despite him claiming he was only able to walk 200 meters with a stick.
Over the years that followed, Hastings Direct and Keoghs worked to uncover a truthful picture of Shaw’s life and the genuine value of the claim.
This investigation involved significant periods of surveillance, deep web searches, numerous applications for disclosure of documents, and detailed cross-referencing to look for further discrepancies.
It revealed Shaw’s participation in extreme sports and that he had managed to ascend Mount Snowdon with a friend using an electric mountain bike.
However, Shaw maintained he had poor mobility and persisted in his claims for a substantial care package, a Land Rover or Mercedes to transport his mobility scooter, bungalow accommodation in an affluent area, and business class travel for trips abroad.
Subsequently, the court found Shaw had been dishonest to such an extent it had “polluted the entire case”, even the valid parts of it.
As a result, his claim was dismissed, and he was ordered to pay the costs incurred by Hastings Direct, while at the same time refunding the £150,000 he had received at the outset.
Keoghs partner and case lead, Mike Pope, said: “We’re delighted with the judgement of this case which culminates years and months of diligent work.
“The judgement provided by the court represents a precedent for all similar cases in its analysis of dishonesty sufficient to dismiss a very serious claim, the circumstance when such dishonesty may be excused, and the costs orders which flow from these decisions.”
At the time of judgement this is the largest case to date to be dismissed for dishonesty, both in terms of the £6.6mn sought, and the court’s valuation of the genuine claim at £1.2mn.
tom.dunstan@ft.com
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