Full Breakdown
High Court Orders Karen Imber to Repay £225,000 Settlement Over Fraudulent Property Claim
By Drooid · · How we work
In this breakdown
01
Summary of the Dispute
Karen Imber, a 68-year-old homeowner in Woodford Green, Essex, sued Thames Water after her house on Warley Road suffered sewage floods in 2006, 2007 and again in 2014. She claimed the flooding rendered the property “unsaleable” and sought compensation for the full market value of £817,000 plus £144,000 for insurance premiums, distress and inconvenience. In mediation, she agreed to a £225,000 settlement on September 6 2023, which Thames Water paid a week later.
02
Timeline of Key Dates
- 2006-2007 – First series of sewage floods.
- 2014 – Second flooding event.
- August 2 2023 – Imber accepted an offer to sell the house for £780,000.
- August 3 2023 – Sale completed; Thames Water remained unaware of the transaction.
- September 6 2023 – Settlement agreement for £225,000 reached.
03
Legal Findings and Official Response
Deputy Master Alexandra Marzec ruled that Imber’s claim that the house was “unsaleable” was a continuing representation that became false once the property was sold. The judge noted that ordinary decent people would regard it as dishonest to pursue a claim based on a premise that no longer reflected reality.
Thames Water’s barrister, James Davies, argued that Imber had a duty to correct the false representation during settlement negotiations. Imber’s defence was that she had informed the mediator of the offer and believed no further duty existed. The court found Imber had “no real prospect of defending” the fraud claim and entered summary judgment in favor of Thames Water.
04
Financial Implications
- Original assessed value (pre-flood): £817,000.
- Sale price on August 3 2023: £780,000 (approximately £37,000 below the expert’s hypothetical market value without flooding).
- Settlement paid by Thames Water: £225,000.
- Court order: Imber must repay the £225,000 settlement and may face additional damages, to be assessed at a further hearing.
05
What’s Next
The judgment rescinds the settlement agreement and obliges Imber to return the £225,000 to Thames Water. The water company retains the option to pursue further damages, with the amount to be determined at a subsequent hearing.