Simon Trigger successful in obtaining £20,000 Exemplary Damages in Credit Hire Fraud case

Simon Trigger, instructed by Morgan Davies of HF Solicitors, represented Hastings Direct, in the case of Advantage Insurance Company Limited v Arrow Car Hire UK London Ltd and Mr Vinayak Soman.

The case concerned motor insurance fraud undertaken by the First Defendant and Second Defendant (who was a Director of the First Defendant). The Defendants obtained the details of drivers involved in non fault road traffic accidents. The details were obtained by cold calling and website search address manipulation. Having obtained the non fault drivers details the Defendants then represented to Hastings (who insured the at fault drivers) that they acted for the innocent driver in their claims. The Defendants then presented claims for vehicle damage, storage, credit hire and recovery. Due in part to the time pressure involved in Credit Hire claims a number of payments for alleged vehicle damage/repair costs were then made to the Defendants to prevent the credit hire costs mounting. In fact the services were never received by the innocent driver and the Defendants did not represent them. The vehicles were not repaired and the money was not paid over to them. Instead the Defendants took all payments made for themselves.

Proceedings were issued by Hastings seeking repayment of all vehicle damage payments made as well as exemplary damages against both Defendants. The case was heard at Hastings County Court. The judge awarded Hastings all sums previously paid to the Defendants together with interest. In addition in light of the nature and extent of the fraud and the fact that the loss was limited due to the fraud being exposed the Court held that this was a case in which exemplary damages should be awarded. The Judge relied on Axa Insurance v Financial Claim Solutions Ltd [2018] EWCA Civ 1330 in reaching that conclusion. The Court ordered each Defendant to pay the further sum of £10,000 to Hastings by way of exemplary damages. Costs were awarded in full on an indemnity basis. The Defendants are now required to pay the Claimant a total of £49,477.02 within 14 days.