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England and Wales Court of Appeal (Civil Division) Decisions |
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You are here: BAILII >> Databases >> England and Wales Court of Appeal (Civil Division) Decisions >> Mulcahy v Castles Solicitors & Anor [2013] EWCA Civ 1686 (18 December 2013) URL: http://www.bailii.org/ew/cases/EWCA/Civ/2013/1686.html Cite as: [2013] EWCA Civ 1686 |
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ON APPEAL FROM LIVERPOOL COUNTY COURT
His Honour Judge Wood QC
9LV26595
Strand, London, WC2A 2LL |
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B e f o r e :
LADY JUSTICE GLOSTER
and
LORD JUSTICE BRIGGS
____________________
SUSAN JANE MULCAHY |
Appellant |
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- and - |
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CASTLES SOLICITORS HEXTALLS WITH CASTLES AND CO |
Respondents |
____________________
WordWave International Limited
A Merrill Communications Company
165 Fleet Street, London EC4A 2DY
Tel No: 020 7404 1400, Fax No: 020 7831 8838
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Derek Holwill (instructed by CLYDE & CO SOLICITORS) for the Respondent
____________________
Crown Copyright ©
Lord Justice Briggs :
"…to pass on to counsel (Mr. Smyth) attending the ancillary relief hearing the information provided by the claimant that her income had fallen significantly since the completion of her Form E."
Interim payment
"I am not going to require you to pay any interim costs – and of course they have to enforce those costs against you – for a period of approximately two months. Now, that will enable you to apply for permission to appeal. Obviously if you are unsuccessful on that application, then I am afraid the order has to kick in. If you are successful, then the Court of Appeal can consider granting you a stay in relation to the costs, and therefore there would be no enforcement until the appeal is eventually resolved."
"a court at this stage when dealing with an application for costs by a successful party will not make an enquiry into the means of the unsuccessful party…"
Discrimination
"I do not have the slightest doubt that there is no prospect of succeeding in this court on the basis… of failure to take into account the known condition of Mrs. Mulcahy."
Where, as here, a single judge of the Court of Appeal refuses an oral application for permission to appeal on specific grounds, that is generally the end of the matter, in relation to those grounds. Nonetheless CPR Part 52.17(1) and (2) enables the Court of Appeal to reopen the final determination of an application for permission to appeal if:
a.) It is necessary to do so in order to avoid real injustice;
b.) The circumstances are exceptional and make it appropriate to reopen the appeal, and;
c.) There is no alternative effective remedy.
Those are cumulative requirements.
Failure to inform counsel about Mrs. Mulcahy's significant reduction in income
1) Mrs. Mulcahy's Form E (prepared in February 2003 and delivered, once sworn by her, to Mrs. Boots and then to the court in early April) disclosed her estimated net earnings for the next 52 weeks as £20,600, based upon two years' accounts (i.e. £1,716.66 per month).
2) Mrs. Mulcahy had informed Mrs. Boots of a significant reduction in her monthly earnings between July and October 2003.
3) Nonetheless, and without any instructions from her to that effect, Mrs. Boots included within written instructions to Mr. Campbell in November a statement (backed by a Schedule of Assets) describing her earnings as being £2,200 per month, without any reference to the recent fall in her income during the previous four months.
4) Neither at the conference with Mr. Campbell on 20th November, nor thereafter, did Mrs. Boots or anyone else from the defendant solicitors (after her departure on maternity leave) inform either Mr. Campbell or Mr. Smyth of the reduction in her earnings which she had experienced.
5) As a result, Mr. Smyth negotiated the compromise and obtained the court's approval of it on the basis of a misunderstanding as to her sustainable earnings, with the result that:
a.) She obtained a financially less advantageous clean break settlement than would otherwise have been available; and,
b.) No protection against insecurity of future earnings was provided to her by the inclusion of a provision for nominal maintenance, so as to enable her to re-apply if, in the future, her earnings failed to recover.
"…failed to act with due care and attention in relation to her responsibility to obtain and provide financial information to instructed counsel and to the court".
"in failing to notify the court of significant changes in the Claimant's circumstances following the issue of her Form E in accordance with the rules of the court."
In the absence of any allegation that Mr. Campbell or Mr. Smyth had been inadequately instructed about those matters, this plea would meet with the obvious response that it was Mr. Smyth's responsibility to decide, at the trial, what the court needed to be told. The first occasion upon which Mrs. Mulcahy clearly asserted a culpable failure by the defendant solicitors to inform counsel about her reduced earnings during 2003 appeared in her written closing submissions, and even then it was aimed at a failure to instruct Mr Smyth, not Mr Campbell.
"self-employed with variable income manifestly on a downward spiral",
so that her future income was speculative and she needed a provision for nominal maintenance. Since the income trend in her Form E was upwards, this plainly involved an implicit assertion that Mr. Smyth had been informed about the reduction of her income thereafter. Her evidence during the trial was that she had no reliable recollection of what had taken place during her conference with Mr. Smyth on the day before the ancillary relief hearing. Thus there was, in substance, nothing upon which the judge could have based a finding of fact that the outcome of that hearing had been disadvantageous to Mrs. Mulcahy by reason of any failure to appraise Mr. Smyth (whether directly or through a prior failure to instruct Mr. Campbell) as to her reduction in income during 2003.
Lady Justice Gloster :
Lady Justice Arden :