In BTI 2014 LLC v SEQUANA (2022 UKSC 25 the Supreme Court say that Directors owe their duties to the company, rather than directly to shareholders or creditors of the company. There is not a free-standing duty owed to creditors. However, where the company is insolvent, or bordering on insolvency, then the interests of creditors as a general body should be considered even if , and balanced against the interests of shareholders. The greater the company’s financial difficulties the more the directors should prioritise the interests of creditors when making for example to pay a dividend and if so how much. Once insolvency is inevitable the creditors’ interests become paramount.
Anonymity
October 3rd, 2022 by James Goudie KC in Judicial Control, Liability and LitigationIn Plymouth City Council v ABC (2022) EWHC 2426 (Ch) the Council claims that the defendant downloaded personal data and confidential information otherwise than for the purpose of carrying out her duties as an employee of the Council and without the Council’s consent. The defendant applied for anonymity. This has been refused. The issue was the effect if any of the Sexual Offences (Amendment) Act 1992. That Act does not confer power on the Court to order that any party to proceedings should be anonymised. What it does do is to make it a criminal offence to identify certain persons in any publication thereafter. The question was whether the Act applies where there are no criminal proceedings in which an allegation of a relevant offence has been made. There was no clear authority on the point, albeit Sales J as he then was had, in National Westminster Bank v Lucas (2014) EWHC 653 (Ch), the Jimmy Saville case, expressed doubt that the Act had the effect of granting anonymity outside the context of criminal proceedings, and Keenan J in Birmingham City Council v Riaz (2016) 1 FLR 797 did not appear to consider that the 1992 Act was engaged. The Judge in the Plymouth case concluded, at paragraph 30, that the Act applies only where a formal allegation is made in criminal proceedings, that is, where a criminal charge has been made.
Fairness (R (Timson) v SoS for Work & Pensions (2022) EWHC 2392 (Admin))
September 26th, 2022 by James Goudie KC in Decision making and ContractsIn R (Timson) v SoS for Work & Pensions (2022) EWHC 2392 (Admin) Cavanagh J considered the case-law authorities on the circumstances in which written guidance to decision makers may render unlawful the exercise of statutory discretion, the test for judicial review of a policy at common law, the Padfield and Tameside obligations, and, from para 150, the fairness obligation. He reiterated that the rule is that, BEFORE a statutory purpose is exercised, ANY person who FORESEEABLY would be SIGNIFICANTLY DETERIMENTALLY AFFECTED should be given the OPPORTUNITY TO MAKE REPRESENTATIONS IN ADVANCE unless (1) the statutory provisions concerned expressly or impliedly provide otherwise or (2) the circumstances in which the power is to be exercised would render it 9i) impossible, (ii) impractical or (iii) pointless, any argument in support of which should be VERY CLOSELY EXAMINED. A Court will be SLOW TO OLD that there is no obligation to give the opportunity, when such an obligation is not dispensed with in the relevant statute. Cavanagh J considered common law claims and ECHR rights. As to the latter, he considered whether the claimant was a “victim” for the purposes of Section 7 of the Human Rights Act 1998, and whether there was a breach of the claimant’s rights under Article 1 of the First Protocol, in the context of social security benefits. In a control of use case, just as in a deprivation or expropriation case, a FAIR BALANCE must be struck between the demands of the general interests of the community and the REQUIREMENT of the protection of the individual’s FUNDAMENTAL RIGHTS. The rules of domestic law must be sufficiently ACCESSIBLE, PRECISE and FORESEEABLE. The fact that the case is concerned with a control of use rather than deprivation of property may be relevant, for example, if may have an impact upon the FAIR BALANCE ISSUE. The fair balance test is addressed at paras 258-261 inclusive. Cavanagh J also considered the question sof “other status” and comparator for the purposes of Article 14 of the ECHR.
Procurement Damages
September 22nd, 2022 by James Goudie KC in Decision making and ContractsIn Braceurself Ltd v NHS England (2022) EWHC 2348 (Admin) there was a two-horse contract race. The outcome of the procurement competition was very close. Even minor breaches of the procurement regime by the contracting authority could have had a decisive impact on the outcome. There was an actual loss of the contract, not the mere loss of the chance of winning a contract. There was a breach. The Claimant sought damages. It failed, notwithstanding the “powerful impact” of the breach on the outcome. The breach was held not to be “sufficiently serious” to justify an award of FRANCOVICH/BRASSERIE DU PECHEUR damages. Whether that was the case, in accordance with the House of Lords decision in FACTORTAME, the UK Supreme Court decision in ENERGY SOLUTIONS v NUCLEAR DECOMMISSIONING AUTHORITY and the decision of the Court of Appeal in DELANEY v SoS for TRANSPORT, was the issue. That depended on all the many relevant factors and the individual facts of the case, as recognized by the Court of Appeal in Ocean Outdoor v Hammersmith & Fulham LBC. The impact of the breach on the availability of public services is amongst the relevant considerations. The Judge said, at para 90, that the phrase “sufficiently serious” indicates that a “fairly high threshold” must be passed before it can be said that, in all the circumstances, the test had been satisfied. This was because (1) it was a single breach case, (2) the breach was at the excusable end of the spectrum and minor, (3)the was inadvertent and occurred in good faith, (4) the Defendant’s purpose was a laudable one, (5) overall the procurement was carefully planned and well-organised, (6) the adverse impact from the breach was limited, and (7) the case was far removed from the multiple breach case in ENERGY SOLUTIONS.
Fit and Proper Person
September 13th, 2022 by James Goudie KC in HousingIn Hussain v Waltham Forest Council (2022) UKUT 241 (LC) it is held that on the question whether someone is a “fit and proper person” to hold a licence under Part 3 of the Housing Act 2004 the FTT should take into account evidence that tended to show unsuitability, whether or not the matters were known to the local housing authority at the time of their licence application refusal decision.
Consultation
September 5th, 2022 by James Goudie KC in Decision making and ContractsThe Coughlan principles apply within the ambit of a consultation being undertaken. They cannot be used to contend that the scope of the consultation should have been wider. So stated by Holgate J at para 196 in R (BT Pension Scheme Trustees Ltd) v UK Statistics Authority (2022) EWHC 2265 (Admin).
Irrationality
September 5th, 2022 by James Goudie KC in Judicial Control, Liability and LitigationIn R (Challis) v SoS for Health and Social Care (2022) EWHC 2269 (Admin) Steyn J at para 73 addresses the legal principles in circumstances where the sole ground of judicial review is irrationality. It is for the Court to determine whether, viewed objectively, the decision is outside the range of reasonable decisions open to the decision-maker. Unequal treatment is not a distinct ground of review. In assessing an allegation of unequal treatment the question is whether irrational distinctions have been drawn between different groups. Consistency is a generally desirable objective. It is not an absolute rule.
Exclusion from voting
August 31st, 2022 by James Goudie KC in Decision making and ContractsExclusion of Committee members from voting was one of the issues in R ( Spitalfields Historic Building Trust ) v Tower Hamlets LBC ( 2022 ) EWHC 2262 ( Admin ). The Judge’s analysis in relation to this begins at para 111. The starting point is that every member of a local authority council or committee has a prima facie entitlement to vote at a relevant meeting. Any restriction of the entitlement requires statutory authority. Where consideration of a planning application is deferred, the two meetings form part of a single decision-making process. A local authority is entitled, by provision in its Constitution, to say that, as far as possible, members should be present for all of that process in order to vote. Such a provision constitutes the regulation of “ proceedings and business “ of the committee, within the power in para 42 of Sch 12 to the Local Government Act 1972.
Duty of Care
August 31st, 2022 by James Goudie KC in Judicial Control, Liability and LitigationThe Appeal in HXA v Surrey County Council (2022 ) EWCA Civ 1196 involves consideration of the circumstances in which a local authority, and/or the social workers for whom it is vicariously liable, owe a duty of care toa child to whom the local authority is providing child protection services. The Court of Appeal’s Conclusions are set out from paragraph 90 to 110.. A duty of care cannot arise simply as a result of the authority’s general duties, but may arise as a result of its specific exercise of its specific duties to a child if, on a case by case basis and the specific facts of the case, the circumstances amount to an assumption of responsibility for the child, and the circumstances in which an authority may assume responsibility for a child are not confined to cases where it acquires parental responsibility under a care order.
Community Infrastructure Levy
August 17th, 2022 by James Goudie KC in Planning and EnvironmentalGardiner v Hertsmere Borough Council (2022) EWCA Civ 1162 raises a question of statutory interpretation about the exemption from liability for “self-build” housing development under Regs 54A and 54B of the CIL Regs. The question is whether that exemption is available when planning per is granted retrospectively for such development. The answer is that it is not.