Question 1 of 10

You act for Blanchflowers Limited (“Blanchflowers”) a company owned by Daniel. Hugo was employed by Blanchflowers, One day, Hugo was injured in an accident at work. As a result of the accident, Hugo suffered a fractured bone in his hand, from which he went on to make a full recovery, and an injury to his heel. Hugo alleged that his heel injury left him in constant pain, such that he was largely dependent on crutches. All efforts to resolve the dispute by way of ADR have failed. As a result, Hugo has brought a claim in negligence against Blanchflowers for £800,000.Daniel had, and continues to have, a strong suspicion that Hugo is exaggerating the severity of his injuries. Indeed, Daniel has previously received reports of Hugo playing football in the local park at week-ends. At the case management conference held five days ago at which you represented Blanchflowers), in response to a question from you , the Judge indicated that she was not minded to strike out Hugo’s claim at this stage and that she would dismiss any application made by Blanchflowers in this regard. A trial date was fixed for 6 months' time.Daniel instructs you he wants to protect Blanchflowers position on costs and that he does not want Blanchflowers to go to trial to avoid the escalation of costs. Daniel accepts that Blanchflowers are likely to be found liable in negligence but strongly feels that elements of the damages claim are at best exaggerated and at worst dishonest.What is the best advice to Blanchflowers about what step to take in order to meet its objectives ?

A. Blanchflowers should make a Calderbank offer, in which Blanchflowers’ would offer to settle what it believes to be the genuine elements of Hugo’s claim while at the same time offering to settle the issue of costs on the basis that Hugo will pay Blanchflowers’ costs incurred in respect of the fraudulent or dishonest aspects of Hugo's claim on the indemnity basis. B. Blanchflowers should apply for summary judgment against Hugo. C. Blanchflowers should apply for default judgment against Hugo D. Blanchflowers should proceed to trial without making any further applications to the court and without making any attempt to protect its position in costs.