QUEEN'S BENCH DIVISION
Strand, London, WC2A 2LL |
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B e f o r e :
(SITTING AS A DEPUTY JUDGE OF THE HIGH COURT)
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ZURICH INSURANCE PLC |
Applicant |
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- and - |
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(1) SHAUN KEVIN BARNICOAT (2) PHILIP CRAZE |
Respondents |
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No appearance by the Respondents
Hearing date: 17 November 2020
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Crown Copyright ©
Covid-19 Protocol: This judgment was handed down remotely by circulation to the parties' representatives by email, release to BAILII and publication on the Courts and Tribunals Judiciary website. The date and time for hand-down is deemed to be 10:30am on 19 November 2020.
David Lock QC:
"Statement of Truth
I believe that the facts stated in these particulars of claim are true"
"I regret to say very clearly, I have no hesitation in finding that this claim, both of these claims, are fundamentally dishonest"
i) I am satisfied that the Respondents have been properly served, including being notified about this hearing;ii) I am also satisfied that the Respondents have had more than sufficient notice to enable them to prepare for the hearing;
iii) I note that no reasons have been advanced by them or by anyone on their behalf to explain their non-appearance;
iv) It is not clear to me why the Respondents have not engaged in this process but I do not think I can draw an inference that they have waived their right to be present. It is probably more accurate to say that they have had every opportunity to take part and have chosen not to do so;
v) There is nothing in any of the material before to suggest that, if I were to adjourn this case for a short period, either of the Respondents would be likely to attend a resumed hearing. Accordingly I doubt that the court would be in any different position in the future if this matter were to be adjourned;
vi) It would clearly be better for the Respondents if they were to attend, but the level of prejudice caused to them by their non-attendance may be limited as they have given evidence in full about the relevant events and been thoroughly cross-examined. A Respondent to a committal application is not obliged to give evidence: Comet Products Limited v Hawkex Plastics Ltd [1971] 2 QB 67. Even if the Respondents had attended and had given evidence, it is hard to see that there is any additional evidence they could give which was not given to the District Judge or that, in giving evidence, they would be in a better position than they were before the District Judge. I thus accept that the Respondents may be disadvantaged by not being able to present their account of events but I do not consider that this is prejudice to them because it is highly likely that they have not attended because they have chosen not to attend;
vii) There will be a measure of prejudice caused to the applicant by any delay in that it will incur additional costs which, in all probability, it will never recover whatever the outcome of these proceedings;
viii) I also do not consider that any real undue prejudice would be caused to the forensic process if the application was to proceed in the absence of the respondents; and
ix) Given that the Respondents have been served but have taken the decision not to be involved in these proceedings, it seems to me consistent with the overriding objective in CPR 1 for the case to proceed in the absence of the Respondents.
The grounds
i) Ground 1 is directed to both Respondents and asserts that neither of the Respondents was involved in "an accident" in the manner set out in the Particulars of Claim, and that the Statement of Truth signed by each Respondent at the end of the Particulars of Claim referred to the accident was an untrue statement;ii) Ground 2 is solely directed to Mr Barnicoat and concerns his injuries. §15 states that "The statement that the 1st Respondent suffered injury to the right arm was false and the 1st Respondent knew it to be false";
iii) Ground 3 is solely directed to Mr Craze and concerns his injuries. The complaint is that the claim that Mr Craze banged his head and lost consciousness fleetingly, and experienced pain in his head and both legs was false and was known by Mr Craze to be false.
The standard of proof
"The Relevant Law In Outline
9. It is common ground that for the Claimants to establish each contempt alleged they must prove beyond reasonable doubt in respect of each statement:
(a) The falsity of the statement in question
(b) That the statement has, or if persisted in would be likely to have, interfered with the course of justice in some material respects;
(c) That at the time it was made, the maker of the statement had no honest belief in the truth of the statement and knew of its likelihood to interfere with the course of justice"
The evidence
i) First, these events happen 7 years ago and there was a period of 4 years between the material events and the trial before the District Judge. That passage of time inevitably means that it is more difficult to be confident about what did and did not happen on the night of 13 February 2013;ii) Secondly, discrepancies about the precise details about how an accident happened do not, of themselves, prove that anyone is being dishonest. Honest witnesses recall events with different details and often in a different sequence. Memories do not operate perfectly and the litigation process itself can distort people's memories, as Leggatt J observed in Gestmin SGPS SA v Credit Suisse (UK) Ltd [2013] EWHC 3560 and HHJ Pearce explained in AB v Pro-Nation Ltd [2016] EWHC 1022 (QB);
iii) Thirdly, there is evidence that Mr Barnicoat and Mr Craze had been drinking considerable quantities of alcohol on the day in question. The evidence from PC Thomas both men were "heavily intoxicated and possibly drunk". That evidence may well justify a finding that neither Mr Barnicoat nor Mr Craze were reliable witnesses concerning the relevant events. However, the fact that they were both heavily intoxicated may also, at least in part, explain their difficulty in giving a coherent account as to what happened. Accordingly, any inconsistencies and discrepancies in their evidence could be equally referable to their intoxicated state as they could be referable to a deliberate attempt to obtain damages by being dishonest; and
iv) The fact that the District Judge expressed her views using forcible words on whether Mr Barnicoat and Mr Craze were being truthful when trying a civil case to a civil standard of proof, is of some persuasive value but is not binding on me. I do not consider that I am entitled to reach the view that either Mr Barnicoat or Mr Craze was totally dishonest based upon the findings of the District Judge alone, despite her clear conclusions that these men were putting forward a dishonest claim. It seems to me more important to attempt to understand why the District Judge reach this clear view in order to see whether I can follow her along the same path.
i) First, the evidence was that Mr Barnicoat and Mr Craze had left Mr Barnicoat's house at 18 Old Market Place, Bodmin to walk the short distance to post a letter. However, for reasons which were never explained, Mr Barnicoat and Mr Craze assert that they took a different and longer route on their way back to Mr Barnicoat's flat. Mr Barnicoat was disabled and found walking difficult, and that means that taking a longer route in the middle of the night is particularly inexplicable. When he was asked about this, his only response to the question as to why he, as a disabled man, took a longer route was that there was "no law against it". Whilst that is true, it is not an explanation as to why he chose a longer route on the way home;ii) Secondly, although this supposedly accident happened in the middle of the night, Mr Buscombe confirmed that there was "good street lighting plus 1 unrestricted light across the road from the incident". Further, Mr Barnicoat accepted when he was giving evidence that he was aware of the manhole and the problems with a detached manhole cover prior to the accident. Mr Barnicoat thus claimed that he fell into a manhole in an area which he knew well and was near to his flat and which he knew was uncovered. He also claimed to have done so at a time when there was good street lighting and thus the manhole ought to have been obvious to him. Whilst it is not impossible for someone to make that mistake when intoxicated, given all the circumstances it is somewhat unlikely that Mr Barnicoat stumbled into the known manhole without a thought;
iii) Thirdly, PC Thomas confirmed that the manhole was 2 feet deep and the bottom was covered in a layer of dirt and silt. Mr Craze later complained that his trainers were covered with mud. However, in contrast, PC Thomas said that "It [the floor of the manhole cover] had not been disturbed and I formed the opinion that these 2 persons could not have fallen down the drain as they had alleged". The account of the accident given by both Mr Barnicoat and Mr Craze was that Mr Craze had stepped right into the manhole. It seems highly unlikely that this could have happened in the way Mr Barnicoat and Mr Craze described if the layer of dirt and silt had not been disturbed as reported by PC Thomas;
iv) Fourthly, Mr Craze claimed that he injured his right leg when it went into the manhole. However, for the reasons which were explored in the evidence before the District Judge, that simply cannot be correct. He says he was walking on the pavement and the manhole was at the far left hand edge of the pavement, and substantially into the grassy area. It is almost impossible to envisage how the accident could have happened in the way Mr Craze alleged if his right leg was involved;
v) Fifthly, Mr Craze claimed to have been knocked unconscious in this incident and to have remained unconscious for 30 minutes. However, this cannot have been correct because the ambulance call was made by Mr Doyle very soon after the alleged incident at 1.06am and Mr Buscombe was on the scene within 3 minutes at 1.09am. His notes say "? KO". It therefore simply cannot have been the case that Mr Craze was unconscious for any extended period. When questioned about this, Mr Craze came very close to admitting that when he was asked about the discrepancy between his account and that of the ambulance staff;
vi) Sixthly, both the paramedic and the police officer attending the scene quickly came to the opinion that, at the lowest, the account of events given by Mr Barnicoat and Mr Craze was suspicious and, in the case of PC Thomas, he formed the view that this was a staged accident to support a compensation claim and reported as such on the night;
vii) Seventhly, Mr Barnicoat claimed that his right arm was injured in the accident and produced a photograph of the arm. However, as the District Judge noted, he had a significant tattoo on his left arm and the photograph showed the tattoo on his left arm. However, whichever arm was supposed to have been injured, this was not an injury that was noted by the paramedic at the time he attended the scene. He cannot have injured his right arm;
viii) Eightly, Mr Craze reported scars on his shins as a result of this incident to Dr Stewart who reported on his injuries over a year later and reported this in the Particulars of Claim. No abrasions were noted by Mr Buscombe when he attended that night. It is simply not believable that, if Mr Craze had lacerations and bleeding on his legs from this incident, these injuries would have been entirely missed by the paramedic, particularly as he says he was wearing shorts. Further, when Mr Craze was asked about this discrepancy in cross examination he was not able to offer any explanation other than that he had taken his trousers down to show the injuries but Mr Buscombe had not noted them;
ix) Ninthly, the ambulance was called by Mr Doyle from a telephone box that was some way away from the scene at 144 St Mary's Road. That seems very strange as Mr Doyle admitted that he had a mobile phone. However, he also reported that the men had "blood on faces" which is something that he accepted he cannot have known and thus, at the very least, was exaggerating the injuries suffered by his friends;
x) Lastly, neither Mr Barnicoat nor Mr Craze had any real explanation of the incident in the public house reported to Mr Nosworthy. It was put to Mr Barnicoat that he had joked with Mr Craze about making a fraudulent claim and, instead of denying it, Mr Barnicoat just said it was "banter" and "gossip talk". However, it hard to see how that is a proper answer if they had thought that they were making a genuine claim as opposed to a fraudulent one.
"There was no accident as alleged"
i) Both Mr Barnicoat and Mr Craze made false statements about the injuries that they claimed to have sustained, as particularised in Grounds 2 and 3;ii) That they made those false statements for the purpose of improperly seeking financial compensation from CHL (or in practice their insurers) as damages for injuries that they never sustained;
iii) That when they signed the Particulars of Claim and made witness statements, both Mr Barnicoat and Mr Craze knew that they were telling lies about the alleged injuries, and that they did so in order to seek to persuade CHL to pay them damages for injuries that they never sustained.
"5. Those who make such false claims, if caught, should expect to go to prison. There is no other way to underline the gravity of the conduct. There is no other way to deter those who may be tempted to make such claims and there is no other way to improve the administration of justice.
6. The public and advisers must be aware that, however easy it is to make false claims, either in relation to liability or in relation to compensation, if found out the consequences for those tempted to do so will be disastrous. They are almost inevitably in the future going to lead to sentences of imprisonment which will have the knock-on effect that the lives of those tempted to behave in that way, of both themselves and their families, are likely to be ruined."
"It has been stated and repeated in the cases that this species of contempt is a public wrong and needs to be recognised and published as such. Corrupting the stream of public justice is generally more poisonous than the mere telling of a lie by one man to another. Many would think that the litigant who dishonestly perverts the process of litigation should recover nothing through the courts, even if otherwise her case has some justice. There is much to be said for that point of view"