Court Of Appeal Finds Committal Proceedings Can Be Brought For False Statements Made Pre-Action

In a decision that will be welcomed by insurers and fraud practitioners, the Court of Appeal has held that committal proceedings can be brought in respect of false witness statements made under a pre-action protocol.

Our success in EUI v Dodd last year highlighted that the knowing pursuit (and issue) of a fraudulent claim is likely to receive a custodial sentence. The question posed in Yavuz - whether pre-action statements can be the subject of committal for contempt - has now been clearly addressed. This decision is likely to mean that the prospect of successful committal actions will increase further, placing further pressure on those who pursue fraudulent claims.

In addition, the Court found it was effective for allegations of further contempt arising from a party's response to committal proceedings to be dealt with in those same proceedings. Such a move would "not give rise to any unfair prejudice to the respondents."

Background

The Respondents, Karl and Laura Hughes, pursued a claim for holiday sickness under the Package Travel Regulations against the Appellant, Jet2 Holidays Limited. They alleged they had contracted food poisoning as a result of unsanitary conditions at their hotel.

The Respondents commenced claims under the Personal Injury Pre-Action Protocol ("PAP"). Witness statements ("the initial statements") were sent to the Appellant detailing the allegations. The Appellant located social media posts directly contradicting the...