QB-2018-004997 - [2025] EWHC 2301 (KB)

This is a case to which the regime of Qualified One-Way Costs Shifting set out in CPR rr 44.13 to 44.16 applies. The effect of that part of Rule 44 is to preclude a Defendant from enforcing an award of costs save by way of set-off against damages or adverse costs orders, unless one of the exceptions contained in CPR 44.15 or 44.16 applies.

One of the exceptions, CPR 44.16(1) relates to ‘fundamental dishonesty’. It reads,

“Orders for costs made against the Claimant may be enforced to the full extent of such orders with the permission of the court where the claim is found on the balance of probabilities to be fundamentally dishonest.”

The phrase is also used in section 57 Criminal Justice and Courts Act 2015 which requires that the court dismiss a claim, notwithstanding that the Claimant was entitled to damages, if the Claimant has been fundamentally dishonest in relation to it (or a related claim).