Overview

This webinar provides a practical overview of how a Claimant may seek to recover costs on the indemnity basis where the Defendant alleges fundamental dishonesty, with particular focus on the costs consequences and procedural considerations arising in 2026.

The session will examine the legal framework governing fundamental dishonesty, the professional and ethical issues involved in making and responding to allegations, and the additional work that such allegations can generate throughout the life of a claim. It will also consider the interaction between fundamental dishonesty allegations and QOCS, Part 36, fixed costs, costs budgeting and the court’s discretion under Part 44.

The webinar will conclude with a review of recent case law and practical lessons for practitioners, including how courts have approached the costs consequences where allegations of fundamental dishonesty are made, pursued or ultimately fail. Recent decisions illustrate the importance of the parties’ conduct, the costs generated by the allegations and the proportionality and reasonableness of the work undertaken.

Learning Objectives

By the end of the webinar, delegates will be able to:

• Explain the legal basis for fundamental dishonesty, including the relevant statutory and procedural provisions and the distinction between dishonesty that is fundamental and dishonesty that is merely incidental or collateral.
• Identify the ethical and professional considerations that should be addressed when making or responding to allegations of dishonesty.
• Assess the impact of a fundamental dishonesty allegation on the conduct of a claim, including the additional evidence, investigation, preparation and costs that may arise.
• Identify the practical steps to take when an allegation of fundamental dishonesty is made, including issues of pleading, evidence, disclosure and preparation for trial.
• Understand the relevance of evidence, allocation and assignment in claims involving allegations of fundamental dishonesty.
• Evaluate the strategic use of Part 36, including how offers may interact with the wider costs consequences of a claim.
• Understand the application of the fixed-costs regime, including the circumstances in which exceptionality or unreasonable behaviour may justify a departure from the usual costs position.
• Consider the implications for costs budgeting, including appropriate assumptions, the effect of fundamental dishonesty allegations on budgets and the circumstances in which revisions may be required.
• Explain the factors relevant to the court’s discretion under CPR Part 44, including conduct, reasonableness, proportionality and the additional work generated by dishonesty allegations.
• Apply the latest case law and practical guidance to costs disputes arising from allegations of fundamental dishonesty, including cases where such allegations are established and where they ultimately fail.