The Supreme Court has ruled that while in theory a Court has power to strike out the whole of a claimant’s claim which had been grossly exaggerated, it could barely envisage the circumstances in which such an extreme sanction might be justifiable. The issue arose in the context of a personal injury claim which had been so grossly exaggerated as to constitute an attempt to defraud insurers.

The ruling is a disappointment to the insurance industry which had hoped for judicial approval of the principle to help fight fraudulent and exaggerated personal injury claims. Please speak to Julian Johnstone, Partner and Head of Druces LLP’s Litigation & Dispute Resolution Department for further information.