Yesterday
I was emailed a case which I read with considerable interest. It is called R
(on the application of Evans) v North Somerset Magistrates' Court [2012]
EWHC 2382 (Admin). It is worth a read.
The case
concerned the decision of the Magistrates' Court to commit the Claimant to
prison for a period of 12 months in respect of the non-payment of an
outstanding compensation order. You know that the case if going to be worth a
read when Lord Justice Moses observes in the first paragraph that "What
went on leading up to that committal seems to me a matter of considerable
concern".
On the
13th March 2009, the Claimant had pleaded guilty, before the Crown Court at
Bristol, to offences of theft and false accounting. She was sentenced to a term
of 8 months' imprisonment. Confiscation proceedings were commenced and, on the
7th April 2010, the Crown Court made a confiscation order pursuant to s.6 of
the Proceeds of Crime Act 2002 (POCA), assessing the criminal benefit as
£56,039 and that the available amount was £27,771.29. That available amount was
calculated by reference to the fact that the Claimant had a 100% interest in
the equity of a dwelling house (valued at £25,771.29) and a car (valued at
£2,000). The total sum was to be paid as compensation to the victim of the
crime (a rugby club) and was to be paid within 6 months.
Time for
payment was subsequently extended (the property not having been sold within the
6 month period). On the 12th August 2011 the property (and car) were sold.
Unfortunately, there had been a miscalculation of the amount of equity in the
property for which the Claimant had a beneficial interest. A shortfall of
approximately £18,600 remained. Accordingly, the Claimant applied to the Crown
Court for a variation of the Order and, on the 1st September 2011, the amount
of the Order was reduced to 'nil', the Crown Court being satisfied that there
were no other available assets.
The
Claimant, however, still had to deal with the question of compensation (the
compensation issue being distinct from the confiscation order, notwithstanding
that the order on its face designed the order to be deployed in satisfaction of
compensation). Pursuant to section 133 of the Powers of Criminal Courts
(Sentencing) Act 2000, the Magistrates' Court may:
"...On
the application of the person against whom the compensation order was made,
discharge the order or reduce the amount which remains to be paid; but this is
subject to subsections (2) to (4) below."
The case
thus came before the Magistrates' Court on the 7th October 2011. They
apparently heard evidence from the Claimant's partner, a Dean Evans, who
although in employment, was due to be made redundant and to receive a
redundancy payment, and also heard from representatives of the victim rugby
club as to the disastrous effect on them of the dishonest behaviour of this
claimant. The Magistrates adjourned those proceedings, ordering the Claimant to
make a payment of £120 per month towards payment of the outstanding
compensation order. The matter came before the Magistrates again on 2 December
2011. At that stage the Court heard that the Claimant's partner had indeed
received a redundancy payment and apparently had heard that there was
available, out of that redundancy payment, a sum of £3,000.
The Legal
Advisor to the Magistrates provided the High Court (as part of the Judicial
Review proceedings) with a document described as a 'statement of facts'. At
paragraphs 10-11 of the Judgment, Lord Justice Moses observes that,
"In
any event, on that hearing on 2 December, he [the Legal Advisor] says that the
means enquiry was conducted with the Claimant on oath and the Claimant asserted
that neither she nor her husband had the means to pay the compensation order
and she indicated that her husband's redundancy payment had been used in full
to set up a new business and thus the offer of payment out of that was
withdrawn. It appears that she was asked about a holiday she had had, which she
accepted, in Turkey earlier in the year, staying in a friend's villa, but there
is no record of how much that cost or whether that was unreasonable expenditure
in the context of the order made against her. She told the magistrates on that
occasion, according to Mr Sims, that £7,500 remained out of redundancy money.
The statement then goes on in quotation:
"The
Justices adjudication was that the compensation should stand (...) The Justices
were satisfied that the offer of payment from the redundancy money was made
freely by the Claimant at the previous hearing and no good reason existed not
to further consider this."
Accordingly,
they ordered that she pay £3,000 within 14 days and to continue with the
monthly payments of £120. There was a warning that she would go to prison for
12 months if she did not pay it. A review hearing was listed for 4 March 2012,
once, so it is recorded, it became apparent by late December that the sum of
£3,000 had not been paid. I then note with some disquiet that in this, "the
Claimant had failed to contact the court to advise that she was unable to
pay".
It seems,
however, that the Claimant had not failed to contact the Court. At paragraph
13, his lordship continues-
"There
was an acknowledgement on 22 December from L Guest, the administrative officer
at North Somerset Court House, saying the hearing had been arranged for 3
January to allow the magistrates to read your letter. Those circumstances, are,
as I have said, a matter of disquiet that it is asserted that she failed to
contact the court. She did and there was a hearing on 3 January 2012 when she
was, again, unrepresented. It is recorded that the £3,000 payment had not been
made and the statement goes on:
"The
claimant clearly told the justices that she did not see why she should have to
pay the order. Her demeanour was belligerent during the hearing and she seemed
unable to understand why she should have to pay the money outstanding to the
compensatee. In effect she had already been punished. In answering the
questions put to her by the justices the claimant expressed a palpable level of
contempt for the court, claiming to appear unmoved by her compliance
with the previous court order, made no offer of payment. A means enquiry
followed. No offer was forthcoming and at this point the claimant's husband
stood up in the public gallery and offered to pay £3,000 that day."
I turn
now to the central part of the Judgment which is worth reciting in full.
Paragraphs 15-21 of the Judgment read as follows:
"It
was contended at a subsequent hearing by Mr Cameron on behalf of this claimant
that that offer, apparently shouted out from the public gallery, was made when
both the claimant and her husband felt under considerable pressure that if an
order was not made she would go to prison. Mr Sims says that there was no
pressure applied, that if payment were not made, imprisonment would occur. This
is a surprising statement. Given the whole context of this case and the letter
sent saying that the claimant was under severe depression and suicidal
behaviour and that neither member of the household was working and that on more
than one occasion she had been warned that if she did not pay it she would go
to prison, it is startling to read from the legal adviser that no pressure was
put on this claimant. The pressure arose from the circumstances, as anybody
there must have appreciated.
Accordingly,
following that date, the next hearing was a hearing on 3 February 2012. At that
hearing, Mr Campbell did represent this claimant and evidence was given of the
amount she received by way of employment support allowance of£67.50. The
submissions fell on stony ground. The court, in giving its decision to send this
claimant to prison, noted that the club had lost £56,000 and that£18,000 was
still owed and it must be paid. It then recorded the history I have identified
and the magistrates said the court entirely refutes any suggestion of improper
pressure upon you on 3 January. The question is not whether there was improper
pressure but whether the offer made by the husband was not plainly as a result
of fear that were it not to be made the claimant ran a very real risk back in
January of the very thing that occurred the month after, namely that, having
already served one sentence of imprisonment, would go back there to serve even
longer of the 12-month sentence. The magistrates said: "You are clearly
in breach thereof of two court orders and the court finds culpable
neglect."
The
reasons were then expanded by the legal adviser who made it clear that the
justices were satisfied that the claimant had exhibited culpable neglect in her
approach to discharging compensation and particularly that no other method of
obtaining the compensation was available. This is of significance to this claim
because the magistrates went through the other possible sources of money to
meet the compensation obligation. The legal adviser records that all other
enforcement options were considered and were discounted as inappropriate or
previously unsuccessful. A distress warrant was inappropriate because the
claimant had no goods to distrain. A third party debt order was not appropriate
because she had no savings. A money payments supervision order was
inappropriate because other debts had been paid without such an order. An
attachment of earnings order was inappropriate because she was not employed. A
deduction from benefit order was inappropriate as the maximum amount was £10
per fortnight and it would take too long to pay. She was too old for an
attendant sentence order. This is of considerable significance in this case. It
demonstrates the magistrates' appreciation that there were no funds other than
the paltry sum of £127 a month out of her benefit from which her own resources
could meet the obligation to pay compensation. In those circumstances, it is
necessary to identify on what basis it could be said that she had been guilty
of any wilful refusal or culpable neglect. That was crucial to the order that
the magistrates made. Absent such a finding, there was no basis for sending her
to prison.
The only
factual basis stemmed from the offer of the husband to use some of his money,
and I emphasise, it was his money, which he had received by way of redundancy
compensation to satisfy his wife's obligation. There was no obligation upon him
to make the offer. As I have already sought to emphasise the circumstances in
which he made it were perfectly plain: he did so to save his wife from going
back to prison. The fact that he chose subsequently not to, whether for a good,
bad or indifferent reason, did not in any way begin to establish a wilful
refusal or culpable neglect on the part of his partner, this claimant.
The
magistrates appear, in my judgment, to have fallen into error in two
significant respects. Firstly, they failed to have regard to the orders of the
crown court by which it was accepted that she had no assets to meet the
confiscation order and that the confiscation order was linked expressly on the
face of the order to compensation. It was thus recognised by the crown court
that she had no assets out of which to pay the compensation. The only basis
upon which it would be right not to discharge the compensation order would be
on the foundation of clear evidence that there were other resources by way, for
example, of regular income from employment or some windfall subsequent to the
discharge of the confiscation order out of which the compensation order could
be made. No such finding was made by the magistrates. No such finding could be
made because there was no such resource, there was merely the sum she received
by way of benefit. The second error into which the magistrates fell arose out
of their elision between the resources of her husband and her own resources.
That elision could not, as a matter of law, arise out of the mere fact that her
husband had made an offer of £3,000 in the circumstances I have described or
indeed under any other circumstances; it was entirely open to him having made the
offer to withdraw it and there was nothing to suggest that she had compelled
him to do so.
The error
was, in my view, a basic error of law in regarding his assets as the same as
hers. If authority is needed that the two are not the same, it is to be found
in the R v Charalambous 6 Cr App R (S) 385 and in
Archbold, paragraph 5-405, the edition of 2004. Both were cited by Newman J in R
v Patricia Engam [2004] EWCA Crim 1536. It is wrong in principle to impose
a fine on the assumption that one person, for example a spouse, will pay
another person's fine. In that case, the judge expressed the limitations of
that principle where it was sensible to regard the assets of a household as joint
income and assets. Apparently in this case there was clear evidence that the
spouse before the court was not the principal earner but that she had available
to her the income of her partner because the income was properly to be regarded
as joint income (see paragraph 13). That situation is miles away from the case
here where the redundancy money plainly did not belong to this claimant and to
which she had no entitlement and which was not part of her assets. I have
explained the circumstances in which the offer was made and that provided no
basis in law or in fact as foundation for making the compensation order, still
less for finding culpable neglect.
It is, in
my view, a matter of regret that although proceedings were launched and
permission speedily granted in writing, no interim relief granting this
claimant bail was allowed. Of course, High Court judges are enjoined not to
grant bail in criminal appeals on the basis that if it is a short sentence, the
case can be heard very quickly and it is thoroughly undesirable that someone
who has been sent to prison should be released on bail and then sent back
shortly after. But a compensation case like this is wholly different and, I am
afraid, sad to recall that three different High Court judges, as this case
maundered on between 2 March 2012 and 4 April 2012, failed to take a
sympathetic and merciful view and let this lady out as soon as possible. We
granted bail over lunch because we had not reached a final conclusion. But for
my part, in my view, she should never have been ordered to go to prison in
default at all and the magistrates erred in serious measure in those two
respects. I will quash the decision and I shall hear argument, if my Lord
agrees with that conclusion, as to the form of the order we should make for the
future."
That the
Magistrates "erred in serious measure" is undoubtedly correct for the
reasons the High Court gave. However, what interests me is the way in which the
Magistrates seemingly conducted themselves throughout the various hearings.
Once again, I refer the reader back to my earlier post of the 14th August and
the comments made by some in relation to it. In particular, not only did the
Magistrates make "a basic error of law", the way they appear to have
treated the Claimant is deplorable. The very fact that an offer of payment was
being shouted from the public gallery is, many may think, indicative of the
same. Furthermore, and as the High Court acknowledged, the fact that the
Magistrates had conducted the exercise they had (in relation to other
enforcement options) should have set off a huge flashing red light that this
lady did not have the means to pay. For some reason neither that exercise, nor
the previous findings of the Crown Court, swayed them from what turned out to
be one of the most troubling Magistrates' Court decisions I have read in recent
months.
There are
serious lessons to be learned from this case and I for one suggest that it
should be circulated throughout Magistrates Courts up and down the country. I
do not, for one moment, suggest that all Magistrates are as incompetent or
uncompassionate as those in the present case. However, this Judgment does
illustrate that incidents such as those recorded in my post of the 14th August are
certainly not isolated ones.