A robust approach to causation, credibility and litigation risk secured a significant result for our insurer client, with a claim carrying a potential value of £30,000 ultimately resolved for just £2,000 plus costs.

The matter came before the Court in September, where we attended with representatives of our client to consider the claim prior to hearing.

The defence had identified a number of concerns regarding the Plaintiff’s credibility and claims history. CACHE searches revealed previous road traffic collisions raising concerns as to the wider circumstances of the claim. Issues were also identified regarding the Plaintiff’s non-disclosure of previous accidents.

Causation and credibility were accordingly important features of the defence strategy. The claim required careful scrutiny of whether the injuries alleged were properly supported by the mechanism and circumstances of the collision, together with consideration of the extent to which the Plaintiff’s previous accident history and disclosure issues impacted upon the reliability of the claim being advanced.

A further litigation risk arose from the fact that our client had previously settled a separate claim brought by another passenger arising from the same collision. Similar non-disclosure concerns had arisen in that claim, meaning that this previous settlement had to be factored into the overall assessment of the risks associated with proceeding to trial.

Against this background, and faced with a potential exposure of £30,000, authority was obtained to open negotiations. Following negotiations, the matter was successfully resolved for £2,000.

£28,000 Saved: A 93.3% Reduction in Potential Damages Exposure

The settlement represented a substantial saving for our client:

• Potential value/exposure: £30,000
• Settlement: £2,000
• Damages saving: £28,000
• Percentage saving: 93.3%

The outcome therefore represents a significant commercial success, with the claim resolved at approximately 6.7% of its potential value and a 93.3% saving in damages exposure achieved for our client.

Importantly, the result demonstrates the value of maintaining a robust defence where causation, credibility and non-disclosure concerns arise, even where the available evidence may not ultimately meet the higher evidential threshold necessary to establish fraud. Careful scrutiny of the Plaintiff’s evidence, claims history and the causation issues provided an effective platform for negotiations and enabled the matter to be concluded at a fraction of the potential exposure.

The Result

£30,000 potential exposure. £2,000 settlement. £28,000 saved. A 93.3% saving for our client. The outcome highlights the importance of challenging causation and credibility where appropriate and demonstrates how a focused defence strategy can translate into substantial financial savings for insurer clients.