In Churchill Insurance v Kelly, a claim arising out of a liability admitted road traffic accident, Gibbs J found that the Claimant had been dishonest (including perjuring himself) in his presentation of his loss of earnings claim. The deceit was bad enough that he also disallowed the personal injury claim because it hinged on the Claimant's credibility. The Claimant was also penalised in costs. However he was allowed to recover the cost of repairs to his car.
But should a person who has abused the process of the court by bringing a fraudulent claim recover anything at all? Fraud is a growth industry in the UK. Road traffic insurers find themselves beset with a growing number of fraudulent claims ranging from staged accidents to claims from imaginary passengers. Surely in these circumstances, there is a public interest in the courts taking a hard line and holding once and for all that fraud unravel everything.