Abuse of the fundamental dishonesty rules by some defendants in personal injury cases is likely to escalate if the issue is not addressed by regulators, APIL says.
“The court has the power to dismiss an injured person’s compensation claim entirely if, on the balance of probabilities, it finds that the claimant has been fundamentally dishonest,” explained Matthew Tuff, president of the Association of Personal Injury Lawyers (APIL).
“Yet there are no consequences for defendants who make unsubstantiated allegations of fraud against claimants. The rules are being utilised by some defendants as a cynical ploy to avoid paying compensation to honest injured victims of negligence,” he said.
APIL has responded to a Legal Services Board consultation on its draft policy statement on ethical duties for legal professionals.
“Legitimate challenges by defendants are of course completely acceptable. But some unscrupulous insurers are using a scattergun approach in making allegations of fundamental dishonesty in the hope that something sticks and cases are dismissed.
“It’s a tactic to financially and psychologically exhaust vulnerable injured people, who face having their cases dismissed and being held liable for the defendant’s costs as well as their own,” Matthew went on.
“This underhand behaviour will escalate while there are no strong sanctions for defendants who make bogus allegations of claimant dishonesty,” he said.
In its response to the draft ethical duties, APIL added that there is a tendency for some defendant solicitors to prioritise their duty to the client at the expense of their duty to uphold public trust.
“Any new guidance must include real-world examples coupled with education and training. Without these, it can be difficult for practitioners to know the right course of action, especially in complex cases where ethical boundaries are less clear,” said Matthew.