IN THE HIGH COURT OF JUSTICE No. 7CB01145 QUEEN'S BENCH DIVISION [2008] EWHC 3311 (QB) Royal Courts of Justice Friday, 28th November 2008 Before: HIS HONOUR JUDGE SEYMOUR QC BETWEEN: MARTINE WIDLAKE Claimant - and - BAA LIMITED Defendant _________ Transcribed by BEVERLEY F. NUNNERY & CO Official Shorthand Writers and Tape Transcribers Quality House, Quality Court, Chancery Lane, London WC2A 1HP Tel: 020 7831 5627 Fax: 020 7831 7737 _________ MR. G. SIMS (instructed by Ward Gethin, King's Lynn) appeared on behalf of the Claimant. MR. A. GLASSBROOK (instructed by Vizards Wyeth) appeared on behalf of the Defendant. _________ JUDGMENT (As approved by Judge) 1 JUDGE SEYMOUR QC: 2 3 1. This trial has been concerned with the assessment of damages to which the 4 claimant, Ms. Martine Widlake, was entitled as a result of minor injuries 5 sustained in a relatively insignificant accident. She slipped going down some 6 stairs at Stansted Airport. Liability was never in issue. The injuries which 7 Ms. Widlake suffered, I have found, were relatively minor and resolved 8 themselves within a matter of weeks. Indeed, the contention on her part was 9 that only one of the symptoms of which she had complained following this 10 accident continued for more than a matter of weeks and that related to a 11 problem in her lower back. Her case was that she suffered significant pain in 12 her lower back as a result of the accident. 13 14 2. I have found in my judgment that Ms. Widlake deliberately concealed from 15 her first medical expert, Ms. Porter, the fact that she had a history of low back 16 pain. I have also found that she deliberately concealed that history from her 17 subsequent medical expert, Mr. Macfarlane, in the hope of increasing the 18 amount of the compensation which she would recover in respect of her injuries 19 in her accident, which in fact took place on 12th July 2004. 20 21 3. There were really two aspects to the claim of Ms. Widlake in relation to the 22 consequences of her accident, so far as her back was concerned. One was this 23 deliberate concealment from those whom she consulted, and upon whose 24 evidence initially it appeared that she wished to rely, of her previous medical 25 history. The other aspect was what the consequences of the injuries for her 26 back had actually been, given that she had a previous history, and I have found 27 that in fact the suggestion of any significant pain in the back for more than a 28 few weeks after the accident is not well founded. 29 30 4. Damages I assessed at the sum of £5,522.38 and, together with interest agreed 31 by counsel, the amount for which Ms. Widlake has obtained judgment is 32 £5,877.71. 33 34 5. On 2nd July of this year an amount of £4,500 was paid into court on behalf of 35 the defendant, pursuant to the provisions of part 36 of the Civil Procedure 36 Rules. Obviously Ms. Widlake has succeeded in obtaining judgment for a sum 37 in excess of that. However, I have been urged by Mr. Alex Glassbrook, who 38 appeared on behalf of the defendant, to consider whether it was appropriate in 39 the circumstances of this case for Ms. Widlake to recover her costs of the 40 action. Mr. Glassbrook made three alternative submissions as to the 41 appropriate order as to costs. The first was that Ms. Widlake should pay the 42 defendant's costs, the second was that there should be no order as to costs and 43 the third was that the defendant should pay a proportion of the claimant"s 1 costs. Mr. Glassbrook has properly reminded me of the provisions of part 44.3 2 of the Civil Procedure Rules, of which, for present purposes, the material 3 provisions are these: 4 5 "(1) The court has discretion as to: 6 7 (a) whether costs are payable by one party to another; 8 9 (b) the amount of those costs; and 10 11 (c) when they are to be paid. 12 13 (2) If the court decides to make an order about costs: 14 15 (a) the general rule is that the unsuccessful party will be 16 ordered to pay the costs of the successful party; but 17 18 (b) the court may make a different order ..... 19 20 (4) In deciding what order (if any) to make about costs, the court 21 must have regard to all the circumstances, including: 22 23 (a) the conduct of all the parties; 24 25 (b) whether a party has succeeded on part of his case, even if 26 he has not been wholly successful; and 27 28 (c) any payment into court or admissible offer to settle made 29 by a party which is drawn to the court's attention, and which is 30 not an offer to which costs consequences under Part 36 apply. 31 32 (5) The conduct of the parties includes: 33 34 (a) conduct before, as well as during, the proceedings and in 35 particular the extent to which the parties followed any relevant 36 pre-action protocol; 37 38 (b) whether it was reasonable for a party to raise, pursue or 39 contest a particular allegation or issue; 40 41 (c) the manner in which a party has pursued or defended his 42 case or a particular allegation or issue; and 43 1 (d) whether a claimant who has succeeded in his claim, in 2 whole or in part, exaggerated his claim." 3 4 6. In accordance with the usual practice, a schedule of damages was prepared on 5 behalf of Ms. Widlake. There were in fact three schedules of loss. The first 6 two versions, dated respectively 6th June 2007 and 16th August 2007, included 7 a claim for special damages calculated at £163,087.60. 8 9 7. In the third schedule of loss, which was served about three weeks before the 10 commencement of the trial, on 17th October this year, the special damages 11 claim was reduced to £21,294.25. How this came about is really this, that the 12 first two schedules of loss were based on the premise that Ms. Widlake had 13 suffered permanent and disabling damage to her back as a result of falling 14 down the stairs at Stansted Airport and that she would suffer loss for the 15 remainder of her working life. The third schedule of loss was very much 16 reduced because what had happened, notwithstanding the attempt, as I have 17 found, to mislead Mr. Macfarlane as to her previous medical history 18 concerning low back pain, was that Mr. Macfarlane, by perusal of the relevant 19 records, which were made available to him, had ascertained that in fact Ms. 20 Widlake did have a previous relevant history, and on that basis had come to 21 the conclusion, accepting at face value her complaints of pain in her back, that 22 the consequence of the injury when she fell down the stairs at Stansted Airport 23 was that, in effect, her pre-existing back condition had been brought forward 24 by five years in terms of the consequences for her of suffering from that 25 condition and therefore the period which was relevant to the calculation of the 26 special damages claim was not the rest of Ms. Widlake's working life but five 27 years. 28 29 8. The position adopted on behalf of the defendant to the claim of Ms. Widlake 30 was set out in the first counter-schedule, and repeated in a second 31 counter-schedule, in this way, 32 33 "The defendant will therefore compensate the claimant for: 34 35 (a) the temporary aggravation of a pre-existing lower back problem 36 for 12 months, i.e. to July 2005; and 37 38 (b) for soft tissue injuries that resolved mostly within a fortnight of 39 the accident and in relation to the right leg and bruising to the thoracic 40 area by six to eight weeks post-accident". 41 42 The first counter-schedule was served in May 2008. 43 1 9. In effect I have accepted the position adopted by the defendant in the 2 counter-schedule as to what it is that Ms. Widlake is entitled to compensation 3 for. Where the defendant has not been successful is in evaluating what the 4 consequences in financial terms would amount to. The payment into court, as 5 I have said, was £4,500 and my award, inclusive of interest, is £5,877.71. 6 7 10. Mr. Glassbrook, in support of his submissions, has drawn to my attention a 8 number of relatively recent decisions of the Court of Appeal. The first in point 9 of time is that in Malloy v Shell UK Limited (Neutral Citation No. 2001 10 EWCA Civ. 1272). In this case, and indeed in the other case, to which I shall 11 refer in a moment, the issue was very similar to the issue in the present case, 12 that is to say, what had happened at the trial was that the judge had found that 13 the claimant had exaggerated the consequences of the accident in which he or 14 she had been injured but that the judge had gone on to assess damages in a sum 15 in excess of the amount which had been paid into court on behalf of the 16 defendant, and therefore in each of these cases the question which the court 17 had to consider was what should be the costs consequences of the exaggeration 18 of the claim in circumstances in which the amount of the payment into court 19 was inadequate? In Malloy v Shell UK Limited the only substantive judgment 20 was that of Laws L.J. At paragraph 18 what Laws L.J. said was this, 21 22 "The judge was obliged by part 44.3(5) [as I have said] to consider the 23 whole of the parties" conduct. It does appear that he may have considered 24 the respondent's conduct only after the date of the part 36 payment. If 25 that is so, he fell into error. At least since the particulars of claim were 26 filed on 20th September 1999, and until he was found out, the 27 respondent's approach to this action has been nothing short of a cynical 28 and dishonest abuse of the court's process. For my part, I entertain 29 considerable qualms as to whether, faced with manipulation of the civil 30 justice system on so grand a scale, the court should, once it knows the 31 facts, entertain the case at all save to make the dishonest claimant pay the 32 defendant's costs. However, all that is sought here is an order for 100 per 33 cent of the appellant's costs instead of 75 per cent, the costs in question 34 being only those incurred after the date of the part 36 payment. The 35 appeal certainly cannot be resisted on that basis. I would allow it and 36 make the order sought". 37 38 11. The second decision to which my attention was drawn by Mr. Glassbrook was 39 that of the Court of Appeal in Painting v University of Oxford (Neutral 40 Citation No. 2005 EWCA Civ. 161). In that case, the leading judgment was 41 that of Maurice Kay L.J. In the course of his judgment, Kay L.J. referred to 42 the decision in Malloy v Shell UK Limited, and then he said this: 43 1 "21. However, when one turns to Mr. Waters" other points the picture 2 moves substantially in his direction. To the question: who was the real 3 winner in this litigation? there is, in my judgment, only one answer. The 4 two-day hearing was concerned overwhelmingly with the issue of 5 exaggeration, and the University won on that issue. Mr. Farmer"s 6 submission that that was only one issue, the other issue being the 7 quantification of the claim, is not persuasive. Quite simply, that second 8 issue was hardly an issue at all once the Recorder had found the 9 exaggeration and the cut-off date. It is true that that cut-off date was later 10 than the one advanced on behalf of the University, but, viewed 11 objectively, the totality of the judgment was overwhelmingly favourable 12 to the University. It was in real terms the winner. Moreover, the costs 13 incurred after the reduction of the money in court were expended almost 14 entirely on the preparation for and conduct of a trial in which the central 15 issue was that of exaggeration. 16 17 22. There are two additional points which seem to me to have called 18 for the affording of considerable weight by the Recorder, whereas the 19 transcript does not suggest that he afforded them any weight at all. The 20 first is the strong likelihood that, but for exaggeration, the claim would 21 have been settled at an early stage and with modest costs. The second is 22 that at no stage did Mrs. Painting manifest any willingness to negotiate or 23 to put forward a counter-proposal to the Pt 36 payment. No one can 24 compel a claimant to take such steps. However to contest and lose an 25 issue of exaggeration without having made ever a counter-proposal is a 26 matter of some significance in this kind of litigation. It must not be 27 assumed that beating a Pt 36 payment is conclusive. It is a factor and will 28 often be conclusive, but one has to have regard to all the circumstances of 29 the case. 30 31 23. It is with reluctance that I find myself interfering with an 32 exercise of judicial discretion on costs, but I cannot avoid the conclusion 33 that in the particular circumstances of this case the Recorder's order fell 34 outside the generous ambit to which I have referred. I would set aside his 35 order and in its place order, as Mr. Waters suggests, that the University 36 pay Mrs. Painting's costs down to February 25, 2004, and that she pay its 37 costs thereafter. Even that is not ungenerous to her, because it leaves the 38 University with the bills in relation to, for example, the video surveillance 39 recording and at least one medical examination and report which were 40 founded upon her lack of candour. However, I am taking a broad view 41 which I consider accords with the justice of the case." 42 1 12. It is indeed a feature of this case that Ms. Widlake did not make any 2 counterproposals to the part 36 payment, and indeed she made no attempt, 3 I am told, to negotiate at all in relation to the settlement of the claim, 4 notwithstanding that liability was never in issue. 5 6 13. It is plain, in my judgment, that the real winner of the trial before me was the 7 defendant. The issues were whether Ms. Widlake suffered the back pain of 8 which she complains to the extent to which she complained, and whether, as a 9 result of suffering from such back pain, she had been disabled in the way that 10 she complained and had the consequences of her low back pain brought 11 forward for the period of five years, which I have mentioned. Ms. Widlake"s 12 case, in my judgment, is a rather more serious case than it appears that either 13 of the cases of Malloy or Painting were, because in Ms. Widlake's case, it is 14 plain, on the evidence, and I have found, that Ms. Widlake set out first of all to 15 mislead her own medical experts. So it was not a case in which she was 16 complaining merely of symptoms which were exaggerated. She deliberately 17 withheld from her own medical experts material information as to her previous 18 medical history. This case, in my judgment, is material because it amounts to 19 an attempt -- taking the words of Laws L.J. in Malloy -- to manipulate the civil 20 justice system. Not only that, but Ms. Widlake, in my judgment, who plainly 21 knew at all material times what the effects upon her back of falling down the 22 stairs had been, exaggerated them grossly in order to project a case of having 23 suffered symptoms which, even on her latest revised case, were being brought 24 forward by some five years but which in fact, on my findings, as I have 25 explained in my judgment, amounted to very little and resolved itself almost 26 certainly within a few weeks of the date of the accident. 27 28 14. Although the figures in this case have been smaller than the figures which the 29 Court of Appeal had to consider in the case of Malloy, and indeed smaller than 30 the figures which the Court of Appeal had to consider in the case of Painting, 31 the approach, in my judgment, has been to seek, so far as Ms. Widlake is 32 concerned, to manipulate the civil justice system on a grand scale, and 33 although it appears that there has not so far been any decision -- certainly my 34 attention has not been drawn to any decision -- in which the suggestion of 35 Laws L.J. in Malloy has been adopted, in this case it seems to me that it is 36 appropriate to adopt that suggestion and the consequence of setting out, as 37 I find, to abuse the court's process, in the cynical and dishonest fashion which 38 I have found Ms. Widlake did, should have the consequence, notwithstanding 39 that she has recovered damages in excess of the amount which was paid into 40 court on behalf of the defendant, that contrary to her recovering her costs she 41 should pay the costs of the defendant. 42 43 _________