Dispute Resolution

27th June 2013
Dispute Resolution image

Dispute Resolution

Introduction

It has long been established in English law that an insured cannot successfully claim from an insurer where the insured’s claim has been fabricated or dishonestly exaggerated.  This is known as the Fraudulent Claims Rule (“the FCR”).  Obviously the FCR was designed to deter fraud.  However on the 20th July 2017 the Supreme Court, the highest court in the United Kingdom, considered a more recent extension of the FCR to “collateral lies” which are lies told by the insured to embellish the claim but which are irrelevant because the claim is justified whether the statement is true or not.

An example of a “collateral lie” being the insured producing a false receipt for a stolen computer worth £1,000 when the computer has been stolen and is actually worth £1,000.

The Supreme Court held, by 4 judges to 1, in Versloot Dredging BV and Another v HDI Gerling Industrie Versicherung AG and Others that the FCR does not apply to “collateral lies” which are immaterial to the insured’s right to recover.


The Versloot Case

The Versloot Case

The insured’s boat had been damaged beyond repair by a peril of the seas, namely very inclement weather.  The insured presented a claim to its insurers for a sum in excess of €3 million claiming that the crew had heard the bilge alarm but could not investigate because the vessel was rolling in heavy waters.  This was a lie but it was irrelevant to the claim since it was found that a peril of the seas had caused the loss.  Initially the courts held that the lie was a “fraudulent device” which did mean that the insurers did not have to pay out under the policy.

The Supreme Court however held that the FCR did not apply to “collateral lies” as the lie was immaterial and irrelevant to the honest claim.  The loss was caused by the bad weather and as such the lie was irrelevant.


Conclusions

Daven Naghen head of our Dispute Resolution Team has commented on the case as follows:-

“This ruling does distinguish between on the one hand fraudulent claims which are fabricated or dishonestly exaggerated, and valid claims supported by irrelevant lies or embellished evidence.  In the latter these false statements stand to gain nothing more for the insured beyond what it is legally due.  I do think that this is a victory for common sense.  However I would continue to encourage persons to be entirely frank and honest with insurers in such circumstances, since in particular if the lie is deemed material to the claim then there is a very strong chance that the claim will be rightly rejected by the insurer.  In particular inflating the value of an otherwise genuine claim still remains fraud and is likely to lead to a rejection of the claim.”

If you require advice on an insurance claim then please contact Daven on 01775 722261 or email daven.naghen@maplessolicitors.com or Gemma Mayer on 01775 722261 or email gemma.mayer@maplessolicitors.com or arrange an appointment or visit our offices at 23 New Road, Spalding, Lincolnshire, PE11 1DH.


What is the Trust Registration Service? image

What is the Trust Registration Service?

Do you need to register a Trust?

All UK express in existence on or after the 6th October 2020 must now be registered with the UK Trust Registration Service by the 1st September 2022.   A Trust now needs to be registered regardless of whether or not it is subject to tax. 

What is the Trust Registration Service?

The Trust Registration Service compiles details about a trust including information about when the trust was created, details of the settlor (the person who created the trust) and the ultimate beneficiaries of the Trust. 

Express Trusts can cover all types of trusts including trusts created in a Will by a deceased settlor, life time trusts and declarations of trusts with regard to the beneficial ownership of land and properties. Registration can even been required for a bare trust so where one party holds an asset for another.

Certain types of Trust are excluded from the need to register including:

  • a trust create by the intestacy rules.
  • a trust created by a court order.
  • a trust of a life policy or pension policy that pays out on death/ terminal or critical illness
  • a Pilot Trust created before 6th October 2020 that hold less than £100 in it
  • a Will Trust wound up within 2 years of date of death.
  • a trust of jointly owned property where the Trustees and the Beneficiaries are the same people.
  • a bereaved minor trust
  • A personal injury trust

What information is required to register the Trust?

Trustees must enter details about:

  1. The Trustees and nominate a lead Trustee
  2. When the Trust was created
  3. The Settlor
  4. The Beneficiaries

What happens if I do not register the Trust by the deadline?

HMRC have indicated that initially they will send “nudge letters” to encourage Trustees to register a Trust but ultimately if the Trust is not registered on the system then the trustees will face penalties and fines starting at £100 for each Trustee.  Penalties will increase to £200 if registration is between 2 and 6 months late and £300 (or 5% of the tax liability whichever is  higher) if registration is more than 6 months late.

How can we help?

If you think you are a Trustee of a Trust that needs to be registered please contact us and we will assess whether or not you do need to register the Trust.  You can appoint us as your agent to register  the Trust on your behalf and then continue to maintain the Trust Registration on an annual basis.

If you would like to speak with one of our private client team please contact us on 01775 722261 and speak with Jane Mawer, Faye Blair or Jamie Dobbs.

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Gemma Mayer LLB

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James Turner BA

James Turner was extremely helpful with our buying process. Everything went smoothly. We are very happy with the level of professionalism demonstrated by the office. Highly recommended solicitors. Will definitely do business with them again.

Daven Naghen LLB

"Daven provided an excellent service, from attending the first interview with me to the final court appearance. He filled me full of confidence that he would defend me to which he did and come out with an excellent outcome in view of my position that I had put myself in."

Faye Blair LLB

Faye was excellent, sensitive and acted very well to the time constraints we faced. Great service and dealt with compassion at such sad times made the process less painful very professional.

Jamie Dobbs GCILEx

Over the last forty years I have cause to deal with many law firms both in a personal and professional capacity, including some ‘top’ London Companies. In all of those dealings I have never found anyone as proactive and so willing to offer help and advice as Jamie Dobbs. During the last two years Jamie guided my parents through the completion of Lasting Powers of Attorney. Helped myself with the use of the LPA and recently dealing with Probate and Estate Administration following their death.

Mike Pepper MA

Mike Pepper gave us excellent advice. He was always most helpful and accommodating giving lucid explanations every step of the way. Thank you Mike.

Donna Sandison FCILEx

Donna has been helpful and professional every step of the way during the process. Always on hand to answer any queries and totally professional and friendly at all times.