header-logo header-logo

13 July 2017
Issue: 7754 / Categories: Legal News
printer mail-detail

MoJ moves to stem bout of post-holiday sickness claims

A loophole excluding holiday sickness claims from the fixed recoverable costs regime could be closed to tackle a surge in suspicious claims, the Ministry of Justice (MoJ) has said.

Currently, most personal injury claims are subject to fixed recoverable costs—but not where the incident happened abroad. The MoJ said this week it was responding to travel industry concerns over increasing numbers of suspected bogus claims for gastric illnesses, with some touts operating in European resorts.

It said a 500% rise in claims since 2013 has not been matched in other countries, and warned the trend risks driving up package holiday costs as well as ruining the reputation of Brits abroad. Tour operators say the cost of fighting claims can be out of proportion to the damages claimed, since legal costs are not controlled.

Helen Pugh, barrister at 3 Hare Court, said: ‘It is surely undeniable that there are surprising numbers of claimants and “enablers” who are abusing the system by bringing fraudulent sickness claims.

‘But are fixed fees the way forward? So-called “sickness claims” often involve complicated microbiological disputes about the source of the illness, be it contaminated food or a virus or something else.

‘Injury cases, and some illness cases, will depend upon expert evidence from specialists in standards in the holiday jurisdiction. Analysing this evidence, devising tactics and contentious hearings will frequently require counsel’s involvement.

‘The success and fairness of any fixed fee regime will need to reflect the variety, complexity and intrinsic cost of running many of these types of claims. Get the balance right and fraudsters beware. Get the balance wrong and all claimants beware.’

Issue: 7754 / Categories: Legal News
printer mail-details

MOVERS & SHAKERS

Dawson Cornwell—Russell Bywater

Dawson Cornwell—Russell Bywater

Family law firm appoints new managing partner and head of matrimonial department

Forbes Solicitors—Katy Parkinson & Paul Hatton

Forbes Solicitors—Katy Parkinson & Paul Hatton

Employment and commercial offering strengthened by double hire

Birketts—Duncan Reed

Birketts—Duncan Reed

Regulatory and corporate defence team expands with Bristol partner hire

NEWS
Sophie Charlton of Vardags in London has been announced as the latest winner of AlphaBiolabs’ Giving Back initiative, with her nomination directing a donation to Reunite International
Talk of a reserved ‘Welsh seat’ on the Supreme Court is misplaced. In NLJ this week, Professor Graham Zellick KC explains that the Constitutional Reform Act treats ‘England and Wales’ as one jurisdiction, with no statutory Welsh slot
The government’s plan to curb jury trials has sparked ‘jury furore’. Writing in NLJ this week, David Locke, partner at Hill Dickinson, says the rationale is ‘grossly inadequate’
A year after the $1.5bn Bybit heist, crypto fraud is booming—but so is recovery. Writing in NLJ this week, Neil Holloway, founder and CEO of M2 Recovery, warns that scams hit at least $14bn in 2025, fuelled by ‘pig butchering’ cons and AI deepfakes
After Woodcock confirmed no general duty to warn, debate turns to the criminal law. Writing in NLJ this week, Charles Davey of The Barrister Group urges revival of misprision or a modern equivalent
back-to-top-scroll