AXA Insurance UK Plc v Financial Claims Solutions Ltd & Ors

AXA Insurance UK Plc v Financial Claims Solutions Ltd & Ors

AXA is entitled to compensatory damages for the costs incurred in unravelling the fraudulent scheme, but not to exemplary damages because the case does not fall within the second category of Rookes v Barnard; the profit sought and the compensation would be identical, and exemplary damages are not justified where compensatory damages suffice to remove the wrongful gain.

Parties
Defendant and Part 20 Claimant: AXA Insurance UK PLC; Third Party: Financial Claims Solutions Limited; Fourth Party: Mohammed Aurangzaib; Fifth Party: Hakim Mohammed (MD) Abdul
Jurisdiction
England and Wales
Judgment Date
17 February 2017
Procedural Posture
Part 20 Civil Proceedings (tort of Deceit and Conspiracy) / Assessment of Damages Following Default Judgment
Outcome
Compensatory damages awarded; claim for exemplary damages refused.
Legal Topics
Deceit, Conspiracy, Compensatory Damages, Exemplary Damages, Fraudulent Claims
Tort Law Civil Procedure Insurance Law Deceit Conspiracy Compensatory Damages Exemplary Damages Fraudulent Claims

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Parties

AXA Insurance UK PLC

Defendant and Part 20 Claimant

Financial Claims Solutions Limited

Third Party

Mohammed Aurangzaib

Fourth Party

Hakim Mohammed (MD) Abdul

Fifth Party

Procedural Posture

Part 20 Civil Proceedings (tort of Deceit and Conspiracy) / Assessment of Damages Following Default Judgment

Legal Issues

  1. 1 What compensatory damages are recoverable for the torts of deceit and conspiracy following default judgment?
  2. 2 Is AXA entitled to exemplary damages in addition to compensatory damages for the fraudulent conduct?

Ratio Decidendi

AXA is entitled to compensatory damages for the costs incurred in unravelling the fraudulent scheme, but not to exemplary damages because the case does not fall within the second category of Rookes v Barnard; the profit sought and the compensation would be identical, and exemplary damages are not justified where compensatory damages suffice to remove the wrongful gain.

Court Disposition

Compensatory damages awarded; claim for exemplary damages refused.

Orders

  • AXA awarded compensatory damages of £24,954.31 against the third, fourth, and fifth parties.
  • Claim for exemplary damages dismissed.