Many councils are no longer providing everyday leisure activities because of the fear they will be sued if people hurt themselves, a top judge has said.
Master of the Rolls Lord Phillips said councils were effectively "blackmailed" into paying compensation because it was cheaper than fighting false claims.
He warned people not to expect an automatic payout if they are hurt while taking part in a risky activity.
The number of "low level" claims rose by 9% between 2001 and 2003.
"
It's almost a blackmail effect where local authorities cannot afford to fight these claims
"
Lord Phillips
Lord Phillips told the BBC he was concerned local authorities were taking unreasonable steps to protect themselves from being sued.
Many councils opt to pay out on claims - despite the fact an estimated 10% are bogus - because the costs of going to court are disproportionately higher.
Lord Phillips said: "It's almost a blackmail effect where local authorities cannot afford to fight these claims. It's cheaper to settle."
The number of low level claims, where people injure themselves in a fall for example, rose from 101,000 in 2001 to 110,000 in 2003 - a 9% increase.
Carry the can
Lord Phillips warned it would become harder for people to sue councils successfully if they were hurt pursuing leisure activities.
He said: "What's called for is for the population as a whole to have a reasonably balanced approach to indulging in these pastimes.
"They should not expect if they have an accident, which is always liable to happen, that there must automatically be somebody else who carries the can."
He also criticised the mentality where local authorities would cut down trees because of the danger a child might be hurt climbing one.
Financial security
He said: "If you are too obsessed about the risk of getting sued, you can take steps which stop people enjoying the kind of pastimes that people always have in this country."
Jamie Rhind, who has lost a six-year battle for compensation after becoming paralysed from the waist down, told the BBC life would be harder without the payout.
The court ruled Mr Rhind, who was injured diving into shallow water, had acted in a foolhardy way and that the lake's owners had taken adequate safety measures.
Mr Rhind said: "I'm obviously disappointed. It would have meant enough financial security for me for the rest of my life.
"Judges are maybe not moving the goalposts, but are making it a bit more difficult for people to successfully claim compensation."
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