Hayward v Zurich Insurance Co PLC [2016] UKSC 48

Where an insurer had settled a personal injury claim when they suspected fraud by the claimant, they would be entitled to set aside that settlement if they later discovered proof of fraud on the basis of fraudulent misrepresentation. It was not necessary to prove that the insurer settled the claim because they believed the claimant’s misrepresentations; only that they had been influenced by those misrepresentations.

The respondent had injured his back as a result of an accident at work, and claimed that he had continuing serious back pain restricting his mobility and seriously impairing his ability to work. The insurer argued that he had exaggerated his injury, relying upon video evidence showing him undertaking heavy work at home. The parties reached a settlement agreement for ВЈ134,974 in full and final settlement. Two years later, the respondent’s neighbours approached the employer, stating that from their observation of the respondent, he had entirely recovered at least one year before settlement.

The Supreme Court held that there was no requirement for a defrauded representee to prove that it had settled because it believed a misrepresentation was true, in order to show the requisite influence by or reliance on the misrepresentation.

August 15, 2016 В· Editorial Team В· Comments Closed
Posted in: Cases