[2025] EWHC 2126 (Comm)

For fraud to be pleaded, the primary facts as pleaded, if true, must render “an inference of dishonesty is more likely than one of innocence or negligence”; there must be some fact which “tilts the balance and justifies an inference of dishonesty”: see JSC Bank, per Flaux J (reviewing the authorities) at [20].

In Jinxin Inc v Aser Media Pte Ltd [2022] EWHC 2988 (Comm), Peter MacDonald Eggers KC (sitting as a Deputy Judge of the High Court) held that, in order to justify a plea of fraud, the inference of dishonesty or fraud must be more likely than not, having regard to the primary facts pleaded. He went on to say this:

“That all said, there remains some flexibility in allowing an element of freedom to a claimant alleging fraud to plead its case with the evidence and information then available, given that there might be concerns that the evidence against the defendant will not be readily available, at least possibly until disclosure and the exchange of evidence.”