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England and Wales High Court (Chancery Division) Decisions |
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You are here: BAILII >> Databases >> England and Wales High Court (Chancery Division) Decisions >> Burrell v Clifford [2015] EWHC 2001 (Ch) (14 July 2015) URL: http://www.bailii.org/ew/cases/EWHC/Ch/2015/2001.html Cite as: [2015] EWHC 2001 (Ch), [2015] 6 Costs LO 719, [2016] EMLR 1 |
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CHANCERY DIVISION
Strand, London, WC2A 2LL |
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B e f o r e :
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Paul Burrell |
Claimant |
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- and - |
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Max Clifford |
Defendant |
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Miss Lorna Skinner (instructed by LHS Solicitors) for the Defendant
Hearing dates: 25th June 2015
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Crown Copyright ©
Mr Justice Mann :
Background
The limitation point
"3. In regard to paragraph 1, the Claimant relies upon section 32 of the Limitation Act 1980. The relevant act was concealed from the Claimant and therefore the six-year limitation period did not begin to run until he discovered that the Defendant had used his private and confidential information in the manner complained of."
The pleaded case then goes on to aver that Mr Burrell knew nothing of the alleged breach of confidence by Mr Clifford in sending the fax until he received a copy of the fax from the Metropolitan Police Service on 28th June 2012, or alternatively had a brief opportunity to read it when he visited New Scotland Yard a year previously to view a full lever-arch file of documents which had been obtained as a result of a criminal investigation into two particular individuals, on 22nd June 2011. Mr Burrell's case is that he could not reasonably have known about the act until then, and the act had been concealed in the sense that it occurred in circumstances in which he would not have been likely to know about it for some time.
"32. Postponement of limitation period in case of fraud, concealment or mistake.
1) Subject to subsections (3) and (4A) below, where in the case of any action for which a period of limitation is prescribed by this Act, either -…(b) any fact relevant to the plaintiff's right of action has been deliberately concealed from him by the defendant…
the period of limitation shall not begin to run until the plaintiff has discovered the fraud, concealment or mistake (as the case may be) or could with reasonable diligence have discovered it….
(2) For the purposes of subsection (1) above, deliberate commission of a breach of duty in circumstances in which it is unlikely to be discovered for some time amounts to deliberate concealment of the facts involved in that breach of duty."
The Jameel point
"54….An abuse of process is of concern not merely to the parties but to the court. It is no longer the role of the court simply to provide a level playing field and to referee whatever game the parties choose to play upon it. The court is concerned to ensure that judicial and court resources are appropriately and proportionately used in accordance with the requirements of justice."
"I see no reason why such cases (libel actions) require to be subjected to a different pre-trial regime. It is necessary to apply the overriding objective even in those categories of litigation and in particular to have regard to proportionality. Here there are tens of thousands of pounds of costs at stake and several weeks of court time. I must therefore have regard to the possible benefits that might accrue to the claimant as rendering such a significant expenditure potentially worthwhile."
Lord Phillips went on:
"He added that the overriding objective's requirement for proportionality meant that he was bound to ask whether 'the game is worth the candle'. He [i.e. the trial judge in Schellenberg] concluded at p319:
'I am afraid I cannot accept that there is any realistic prospect of a trial yielding any tangible or legitimate advantage such as to outweigh the disadvantages for the parties in terms of expense, and the wider public in terms of court resources.'"
"69. If the claimant succeeds in this action and is awarded a small amount of damages, it can perhaps be said that he will have achieved vindication for the damage done to his reputation in this country, but both the damage and the vindication would be minimal. The costs of the exercise will have been out of all proportion to what has been achieved. The game will not merely not have been worth the candle, it will not have been worth the wick."
"32. In my judgment in principle a claim like Mr Soloman's could have been tried in the [Patents County Court] if its true value had been recognised at the outset. When in future a judge is confronted by an application to strike out a claim on the ground that the game is not worth the candle he or she should consider carefully whether there is a means by which the claim can be adjudicated without disproportionate expenditure."
"44. In the present case, had the court at the outset been aware of the true value of Mr Soloman's claim, consideration could and should have been given to transfer to the Patents County Court or to an appropriate County Court for (re-)allocation on the small claims track. Unfortunately, up until and at the hearing before the Deputy Judge, Mr Soloman has persisted in a grossly inflated value of his claims which ruled out those alternative routes. The consequence was that, by the time of the hearing before the Deputy Judge, considerable costs had already been incurred in the proceedings in the High Court and that fact, together with the increasingly apparent complexity and likely length of the proceedings, amply supported the Deputy Judge's exercise of discretion [to strike out the claim]."
"40. For my part, I would emphasise that the disproportion justifying the strike-out of Mr Soloman's claim is not merely between the likely amount of damages he would recover if successful in the proceedings and the litigation costs of the parties. It includes consideration of the extent to which judicial and court resources would be taken up by the proceedings. That was the approach rightly taken by the Deputy Judge, who said in [27] of judgment that the proceedings would involve a large amount of court time and would cost a great deal of money to argue and would be a disproportionate use of the court's resources and unfair to the defendant."
i) The claim was a stale one.ii) The information contained in the fax was not inherently confidential or private.
iii) The information in the fax was not sufficiently serious to engage Article 8 of the ECHR.
iv) The fax was published to a very limited number of people.
v) There is no evidence of any financial or other benefit accruing to the defendant.
vi) The fact that Mr Burrell had himself placed the material in the public domain meant that it should be inferred that he himself had no objection in principle to the information being disclosed for financial gain and in fact was willing to trade in it himself, and he made a substantial profit from doing so.
vii) Mr Burrell had been guilty of inordinate delay in progressing his claim. He acquired knowledge of it in 2011 yet did not issue these proceedings until October 2014. This increases the "staleness" of the action.
viii) Mr Burrell had already had one bite of the cherry, namely his apparently abandoned attempt to join Mr Clifford to the phone-hacking proceedings. That led the parties to incur substantial costs – the costs to the defendant of that exercise was said to be over £41,000.
ix) The reality was that this claim was being driven forward by the fact that Mr Burrell's solicitors were acting on a CFA which enabled them to recover an uplift. Accordingly, the gross disproportionality between the costs involved and the value of the claim would not have the usual deterrent effect that would operate in a traditionally funded case.
x) It appears (or so Miss Skinner said) that Mr Burrell recovered in settlement from the proprietor of the News of the World a sum which included compensation in part for the misuse of information within the News of the World. If that is right then the amount of damages that Mr Burrell could claim from Mr Clifford would be reduced even further.
i) The claim is stale, but mainly by reason of the fact that the wrong was carried out covertly and its existence concealed until it happened to be revealed to Mr Burrell by the Metropolitan Police. He could not be expected to pursue the claim until he had actually got a copy of the document so that he could see what it was that had been done, and that did not occur until 2012. It is true that the claim was thereafter not progressed at an impressive speed, but part of the delay occurred in the joinder proceedings when there was delay arising out of a question mark about service, a point eventually resolved in his favour. When he settled the News of the World proceedings it was inevitable that he would have to abandon his application to join Mr Clifford to those proceedings and would have to take time starting these proceedings. In those circumstances I do not think that this point is at all compelling.
ii) and iii) A hearing such as this is not the place to have a debate about the extent to which the information in the letter was inherently private or confidential, or sufficiently serious to engage Article 8. In any event, on the facts which have to be assumed for the purposes of this application, the information was clearly imparted to Mr Clifford under a cloak of confidentiality and privacy. Accordingly, the information falls to be treated as having a serious confidential or private nature.
iv) This is really part of the "size of damage" point. It is true that this case does not have the seriousness of a case in which private information is disclosed to a newspaper and then published to a large readership, but that does not mean that the claim does not have value.
v) The absence of any financial or other benefit accruing to the newspaper seems to me to be irrelevant.
vi) This point does have some strength, depending on the motivation of Mr Burrell in subsequently publishing. If his subsequent publication was really an indication that he did not care much about the privacy of the information, then that would be capable of reducing the damages very significantly and making these proceedings questionable. However, through his solicitor Mr Burrell has explained that the matter is not as simple as that. When he decided to publish his book circumstances had changed. He had been the subject of a hostile media campaign and wished, because of his then personal circumstances, to publish his book. If that is right then it may be that the publication does not do much to damage the value of the original claim. All that is appropriately investigated at a trial. On the evidence this is not a factor which can be said at the moment to render the proceedings an abuse of process.
vii) I have already dealt with the question of delay when I dealt with the staleness (or lack of it) of this claim. There have been some delays but not such as to be significant for present purposes.
viii) I am afraid I fail to see how the previous bite of the cherry (if that is an appropriate metaphor) makes the present proceedings an abuse. The position is that Mr Burrell sought to sue Mr Clifford in what was no doubt perceived to be a cost-effective manner, namely joining him to an action against the newspaper. He then managed to settle the claim against the newspaper. That inevitably meant that Mr Clifford could no longer be sued in that action. A fresh action would have to be started. This is not having a second bite of the cherry; Mr Burrell never had a first bite.
ix) I agree that the costs which are said to be likely to be incurred in this case are very alarming. I also agree that, were it not for the existence of a CFA, it is much less likely that this claim would be brought through solicitors. However, it may be going a little far to say that the proceedings are "driven" by those solicitors if the suggestion is that they are driving these proceedings not in their client's best interests but in their own interests. The fact that they have more of an incentive to act in these proceedings at considerable cost than if they were not on a CFA might be thought to be one of the more regrettable consequences of the CFA regime. However, the financial benefit to solicitors exists, and it would be wrong to infer that that somehow improperly motivates the decision-making process in these proceedings. I also agree that the CFA means that there is less of a deterrent against bringing proceedings which are not particularly valuable. Again, however, that is a feature of the old-style CFA regime, and unless there is evidence of an improper motivation it does not make the proceedings an abuse.
x) It is, at least at the moment, impossible to know what, if any, proportion of the settlement sum presumably paid by News of the World (assuming that they settled on terms that the News of the World paid money) is attributable to misuse of private information within the newspaper. I strongly suspect it will never be possible to reach a conclusion about that. For present purposes it is not possible to give this factor much weight. It is merely one aspect of an assessment as to how substantial the damages in this case are likely to be.
Conclusion