Hastings Direct and Keoghs have achieved what is said to be the largest fundamental dishonesty verdict ever recorded in the UK, with £6.6 million saved by the insurance provider.
The case, Shaw v Wilde, stemmed from a motorcycle accident that left Mr Shaw with injuries to all four limbs. After receiving an interim payment of £150,000 from Hastings Direct, Mr Shaw pursued a £6.6 million claim, citing expenses for luxury vehicles and business class travel.
However, Keoghs’ investigation revealed Mr Shaw's significant exaggeration of his injuries. Despite claiming severe mobility limitations, evidence showed he engaged in extreme sports such as BASE jumping and was cleared by his GP for tandem skydiving.
Initiated in August 2019, Keoghs’ surveillance quickly captured Mr Shaw walking 900 metres unaided, carrying his young son, contrary to his claim of needing a stick to walk 200 metres.
Over the following years, Hastings Direct and Keoghs collaborated extensively to reveal the true extent of Mr Shaw’s activities. The comprehensive effort involved extensive surveillance, detailed internet searches, multiple document disclosure applications, and meticulous cross-referencing.
The investigation uncovered that Mr Shaw participated in BASE jumping in Italy, indoor and outdoor climbing in the UK, and had scaled Mount Snowdon on an electric mountain bike. Despite this, he continued to claim poor mobility, demanding a substantial care package, a high-end vehicle to transport his mobility scooter, a bungalow in a prime location, and business class travel.
The court ruled that Mr Shaw’s dishonesty tainted his entire case, including legitimate claims. Consequently, his claim was dismissed, and he was ordered to cover Hastings Direct’s legal costs and return the £150,000 interim payment.
At the time of the judgment, according to Keoghs, the case marked the largest dismissal for dishonesty, both in terms of the amount that was being sought (£6.6 million) and the court’s valuation (£1.2 million) of the valid claim.
“We’re delighted with the judgment of this case which culminates years and months of diligent work,” commented Mike Pope (pictured), partner and case lead at Keoghs.
“The judgment provided by the court represents a precedent for all similar future cases in its analysis of dishonesty sufficient to dismiss a very serious claim, the circumstances when such dishonesty may be excused, and the costs orders which flow from these decisions.”
Hastings Direct’s large & complex loss head Peter Lane remarked: “This is a fantastic result and one that has been achieved through great collaboration between the team at Hastings Direct, our panel lawyers Keoghs and counsel from 9 St John Street Chambers.
“Hastings Direct is committed to protecting the honest customer and combatting fraudulent claims that can drive up the cost of insurance premiums for all customers.”
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