Hayward v Zurich Insurance Company plc

Misrepresentation – Fraudulent misrepresentation. The respondent insurer claimed damages for deceit against the appellant, in respect of an earlier personal injury claim which was subsequently settled. It pleaded that the statements as to the extent of the appellant's injuries and his accounts given to the medical experts constituted fraudulent misrepresentations. The judge set aside the settlement agreement. The Court of Appeal, Civil Division, in allowing the appellant's appeal, held, inter alia, that the judge had been wrong to have held that the respondent could succeed on the basis that, although it had not believed the misrepresentations, its decision as to how much to pay the appellant by way of settlement had been 'influenced' by the fear that the court might do so.

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