Want to talk to an expert employment law solicitor?

You'll receive a callback from a specialist within an hour

redmans-blog-analysisIn the case of Hayward v Zurich Insurance Co Plc [2016] UKSC 48 the Supreme Court held that a settlement agreement that had been entered into between two parties could be set aside due to evidence of fraudulent conduct.

In 1998 Mr Hayward was injured in an accident at work and brought a claim for negligence against his employers. The case was dealt with on the employer’s behalf by its insurers, Zurich Insurance Company plc (“Zurich”). Liability in the case was agreed and the parties reached a settlement agreement in October 2003, shortly before the quantum hearing was due to be held. This settlement agreement stipulated that the employer (in practice Zurich) would pay £134,973.11 in full and final settlement of Mr Hayward’s claims.

In 2005 Mr Hayward’s neighbours (who had moved into their property in 2002) contacted Mr Hayward’s employers to inform them that they did not believe that Mr Hayward was being honest about the state of his injuries, and further informed them that they believed that Mr Hayward had recovered in full from his injuries at least a year before settlement was agreed. They gave witness statements to Zurich to that effect.

In 2009 Zurich commenced proceedings against Mr Hayward, claiming damages for deceit. Zurich argued that Mr Hayward’s witness statements, his statement of case in the Particulars of Claim, and his Schedules of Loss as to the extent of his injury contained fraudulent misrepresentations. The damages that were claimed by Zurich amounted to the difference between what the case had been settled for and what the case would have been worth if Mr Hayward had been telling the truth. The claim was later amended to state that Zurich was looking to set the compromise agreement aside rather than for an order for damages.

The case came to the Cambridge County Court in November 2012, with the Court finding that Mr Hayward had deliberately and dishonestly exaggerated the effects of his injuries during the court process. The judge also found that the settlement agreement had been entered into by Zurich on the reliance of false representations given by Mr Hayward, and that the settlement agreement should therefore be set aside. The judge found that Mr Hayward would have fully recovered from his injuries by October 1999 and handed down a judgment awarding Mr Hayward damages to the sum of £14,720. An order was also given that Mr Hayward must repay Zurich the sum of £136,110.45.

Mr Hayward appealed against the decision of the Court, arguing that the settlement agreement should not have been set aside. The Court of Appeal ruled in Mr Hayward’s favour, finding that Zurich had been aware at the time that the settlement agreement was entered into that Mr Hayward may have been exaggerating the extent of his injuries. Zurich appelaed to the Supreme Court on the grounds that, regardless of whether Zurich had believed in Mr Hayward’s representations regarding the effects of his injuries, it had been induced to enter into the settlement agreement as a result of these fraudulent representations.

The Supreme Court ruled in Zurich’s favour, holding that it was not necessary for Zurich to show that it believed that the (mis)representations made by Mr Hayward were true but that it merely had to show that it had been induced to enter into the settlement agreement by the misrepresentations (i.e. that the misrepresentations were a material cause for Zurich to enter into the settlement) and that these misrepresentations had caused them loss.

Chris Hadrill, a specialist employment solicitor at Redmans, commented on the case: “This is an important judgment by the Supreme Court in both the contexts of personal injury and employment law – if defendants to litigation can obtain clear and cogent evidence that the other side had misrepresented their case then this could lead to a challenge to any settlement agreement reached between the parties.”

The transcript of Hayward v Zurich Insurance Co Plc [2016] UKSC 48 can be found here

About

Redmans Employment Team deal with employment matters for both employers and employees, including drafting employment contracts and policies, advising employers and employees on compromise agreements, handling day-to-day HR issues, advising on restructures, and handling Employment Tribunal cases for both employers and employees Call 020 3397 3603 to speak to one of the members of our employment team or email us on enquiries@redmans.co.uk. Redmans have offices in Richmond, Chiswick, Hammersmith, Fulham, Kingston, Wimbledon, Ealing, Kings Cross and Marylebone (meetings strictly by appointment only).

Tagged with →  

Want to talk to an expert employment law solicitor?

You'll receive a callback from a specialist within an hour

Share →

Our awards

Request a callback

Your name

Your email

Your telephone number

Contact us

Please feel free to discuss your own position and concerns. Contact your nearest office on:

T: 020 3397 3603
E: enquiries@redmans.co.uk
W: www.redmans.co.uk

Testimonials

4.70 Average

73 Reviews

Richard v

Excellent Service

Posted 6 days ago

Anonymous

Very happy from service received. Highly recommend

Posted 6 days ago

Colin W

Very professional and thorough. Sachs who dealt with the bulk of my case was excellent Thank you. .

Posted 6 days ago

Anonymous

I was generally impressed with the fast turn around, efficiency, responsiveness, and consideration of circumstances. I needed a couple of areas of advice quickly and with Redmans help was able to get to a conclusion quickly and with minimum stress. They were friendly and professional throughout - I'd use them again.

Posted 1 week ago

Anonymous

The guidance and assistance I recently received when using Redman's was fantastic. Caroline & Chris were both very informative and understanding walking me through each step. Thank you.

Posted 1 month ago

Nicola W

Fantastic service, very quick and efficient. Thank you

Posted 1 month ago

Anonymous

Excellent professional service.

Posted 1 month ago

Anonymous

As with All solicitors advice without consequence but understood and communicated my legal position

Posted 1 month ago

Anonymous

Prompt, professional and excellent service.

Posted 1 month ago

Dominic C

Excellent service, prompt and helpful

Posted 1 month ago

Anonymous

I found Redman’s to be very efficient and got me the best deal available in the short time scale that was available.

Posted 1 month ago

Victor L

Very professional. Provided excellent advice on my Settlement agreement.

Posted 1 month ago

Anonymous

Professional from start to finish.

Posted 1 month ago

Oliver W

Excellent service provided by Redmans, will certainly consider using again.

Posted 1 month ago

Melanie H

Very professional and extremely personable service. Thank you very much.

Posted 2 months ago

Anonymous

I found Chris to be very approachable and easy to speak with about complex matters. He took action quickly and his updates to me, as his client, were prompt. I would recommend Chris and the team at Redmans without hesitation.

Posted 2 months ago

Anonymous

Good advice

Posted 2 months ago

Anonymous

Overall happy with the service provided by Chris and Rana.

Posted 2 months ago

Anonymous

Chris and Rana provide a great service, very informed, diligent and care about your result, would recommend Redmans

Posted 2 months ago

David W

A speedy efficient friendly service, I would definitely recommend Redmans Solicitors for processing Settlement Agreements.

Posted 2 months ago

Anonymous

Both Rana and Chris were fantastic. From the first phone call I was confident my matter was in good hands. I was not disappointed. I would highly recommend Redmans. Thank you again for all of your support and advice.

Posted 2 months ago