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John Mitchell was the Attorney-General during the Nixon administration.
His wife - Martha Mitchell - told her psychologist that top White House officials were engaged in illegal activities. Her psychologist labeled these claims as caused by mental illness.
Ultimately, however, the relevant facts of the Watergate scandal vindicated her.
In fact, psychologists have now given a label - the "Martha Mitchell Effect" - to "the process by which a psychiatrist, psychologist, or other mental health clinician mistakes the patient's perception of real events as delusional and misdiagnoses accordingly".
The authors of a paper on this phenomenon ( Bell, V., Halligan, P.W., Ellis, H.D. (2003) Beliefs About Delusions. The Psychologist, 6 (8), 418-422) conclude:
Sometimes, improbable reports are erroneously assumed to be symptoms of mental illness [due to a] failure or inability to verify whether the events have actually taken place, no matter how improbable intuitively they might appear to the busy clinician.
In other words, psychologists who haven't taken the time to examine for themselves the claims of their patients will tend to label as delusional anything which they "intuitively" feel is improbable.