(In this YAWS version a few editorial alterations have been made to the description of the CPR and Practice Directions, eg references to Part 3.8 have been changed to Rule 3.8, to ensure consistency with the remainder of the site.)
| This Report is referred to in: Arrow Nominees v Blackledge [69], Ashton v Securum Finance [32], Habib v Jaffer [7], [10], [30], Lace Co-ordinates v NEM Insurance [27], [28], [30], [31], [55], [55]. |
COURT OF APPEAL (CIVIL DIVISION)
ON APPEAL FROM THE HIGH COURT OF JUSTICE
QUEEN'S BENCH DIVISION
(Mrs Justice Steel) Royal Courts of Justice,
Strand, London WC2
Friday, 23rd January 1998
LORD JUSTICE ROBERT WALKER
-v-
IAN MICHAEL McGREGOR
Defendant/Respondent
MR W NORRIS QC and MISS M EGAN (instructed by Messrs Greenwoods, London WC1) appeared on behalf of the Appellant Plaintiff.
MR D FOSKETT QC and MR M FULLERTON (instructed by Messrs George H Coles & Co., Hove, East Sussex) appeared on behalf of the Respondent Defendant.
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(As Approved by the Court)
Crown Copyright
Friday, 23rd January 1998
| 1. | LORD JUSTICE AULD: This is an appeal by the defendant, Mr McGregor, from an order of Mrs Justice Steel on 8th November 1996 that the action against him of the plaintiff, Mr Miles, should not be struck out for want of prosecution. | ||||
| 2. | Mr Miles's claim is for damages for injury caused by Mr McGregor's alleged negligence on 13th August 1990. Mr Miles's case is that Mr McGregor, a pedestrian, caused him to fall off his motorcycle and injure his back by suddenly stepping off the pavement into the road in front of him. He maintains that, although he was unemployed at the time of the accident, his back injury has caused him permanent incapacity. He maintains, in particular, that it has prevented him from qualifying as a commercial pilot, as he had expected to do in the summer of 1991, and from earning his living in that capacity ever since. Mr McGregor denies that he was negligent and contends that such injury and incapacity as Mr Miles has suffered in the accident were caused by his own negligence. He also strongly challenges the extent of Mr Miles's claimed injury and loss. Thus both liability and quantum are disputed. | ||||
| 3. | There was a good deal of communication between the parties before the issue of proceedings. Mr Miles notified Mr McGregor's insurers promptly of his claim. They initially took the view that the two men shared responsibility for the accident and made some interim payments towards the cost of Mr Miles's medical treatment. During 1991 they commissioned two medical reports on him. However, Mr Miles's solicitors, beyond providing Mr McGregor's solicitors with some receipts for medical treatment and asserting Mr Miles's entitlement to recover damages against Mr McGregor, did very little over the next three years to particularise or document his claim. In the early part of that period there may have been good reasons for that. The claim, though serious, was not then thought by either party to be as serious as it is now said to be. No doubt both were awaiting a final prognosis and contemplating settlement. Not until January of 1993 did Mr Miles learn from a report prepared by Dr Goody that his incapacity was permanent. Shortly after that he provided Mr McGregor's insurers with a copy of that report. That prompted requests from them for consent to the release of medical reports and for information about past employment. | ||||
| 4. | Mr Miles served his writ and statement of claim endorsed on it in early August of 1993; that is, a few days before the end of the three-year limitation period. Some five or six weeks later, on 15th September 1993, Mr McGregor served his defence and a request for further and better particulars of the claim. Mr Miles's solicitors took six months to provide those particulars, doing so at the end of March 1994. The particulars indicated an overall claim for damages in the region of £400,000, made up largely of his lost potential earnings as an airline pilot. | ||||
| 5. | In early April 1994 Mr Miles's solicitors served a list of documents, but no documents vouching for the make-up of his considerable claim. After that, they did little to make progress with the action. They served no witness statements. They failed to respond to Mr McGregor's solicitors' requests and reminders of them for documents relating to Mr Miles's pre-accident employment and to his flying career. They failed to provide consent for a further medical examination on behalf of Mr McGregor's insurers and they failed to set the matter down for trial. They never did provide the documents requested, and they only provided the consent for the release of medical records at the end of May 1995, some 11 months after it had been requested. Unfortunately, by then Mr McGregor's solicitors seem to have been infected with the same lethargy, because they did not arrange any medical examination of Mr Miles, despite reminders from his solicitors in November 1995 and July 1996. | ||||
| 6. | By this time, now getting on for six years after the accident and three years after the issue of the writ, Mr McGregor had applied to strike out the claim for want of prosecution, serving the application on Mr Miles's solicitors on 12th July 1996. The application was heard by District Judge Lay on 29th July 1996, who had before him evidence on affidavit from both parties' solicitors. | ||||
| 7. | Mr Gregory Michael, Mr McGregor's solicitor, detailed in his affidavit the delays that I have summarised and set out two categories of prejudice to the defence if the action were to continue: first, on the issue of liability, a belief that the delay had dimmed the memories of Mr McGregor and his wife, who was with him at the time of the accident, as to the circumstances of it; and second, on the issue of quantum, an assertion that the failure of Mr Miles to make any disclosure of his pre-accident employment and earnings could hinder investigation of those matters as records were likely to disappear with time. | ||||
| 8. | Mr John Timothy Deacon, Mr Miles's solicitor, spoke of a good deal of frustrated activity to advance the claim not evident from the inter-parties correspondence. This included difficulties in obtaining statements from witnesses, including Mr Miles himself; consequential delays in instructing leading counsel, which he eventually did in January 1995; over a year's delay, to February 1996, in obtaining a draft report from loss of employment claims specialists; and a further six months, to July 1996, to arrange a consultation with leading counsel. By this time, of course, Mr McGregor's solicitors had issued his application to strike out the claim. | ||||
| 9. | As to the claimed prejudice to Mr McGregor on the issue of liability if the matter were to proceed, Mr Miles's solicitor deposed that there were two independent witnesses to the accident, both of whom had made witness statements. They were a Mr Ingram and a Mrs Cowie, of whom Mr McGregor's insurers had known since shortly after the accident. As to the claimed prejudice to Mr McGregor on the issue of quantum, Mr Miles's solicitor observed that Mr McGregor's solicitors had made no application to the court about the lack of discovery of Mr Miles's employment details, that the loss of employment claims specialist's report would be disclosed before trial and that the factual bases for it were, as he put it, matters of record. | ||||
| 10. | On 29th July 1996 District Judge Lay dismissed Mr Miles's action for want of prosecution. Mr Miles immediately served a notice of appeal to a judge in chambers. Pending the hearing of the appeal Mr Miles's solicitor disclosed an affidavit sworn in October 1996 from one of the independent witnesses to whom he had referred, Mr Ingram. In it Mr Ingram said that he had a vivid recollection of the accident, described it clearly and exhibited a witness statement to like effect which he had provided to Mr Miles's solicitors in August 1994. However, it appears that he had earlier given a somewhat different account to Mr McGregor's insurers, saying that he had only a vague recollection of the accident. | ||||
| 11. | Mr Ingram's affidavit and a further affidavit from Mr Miles's solicitor giving more detail of the history of the matter were put before Mrs Justice Steel, who heard the appeal on 8th November 1996. She found that there had been inordinate and inexcusable post-writ delay for which both Mr Miles and his solicitors were responsible, Mr Miles in failing to make himself available for interview when required. As to the exact period of inordinate and inexcusable delay, her finding was not clear. At page 5G-H of the transcript she said: | ||||
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| 12. |
Mrs Justice Steel was of the view that such inactivity as there had
been on the part of Mr McGregor's solicitors towards the end did not
mitigate Mr Miles's and his solicitors' responsibility for the delay,
it being for them properly to prosecute the claim. However, as to a
substantial risk of the impossibility of a fair trial and/or the
likelihood of serious prejudice to Mr McGregor, the judge held that
there was no substantial risk and no such likelihood. She referred to
the question of dimming of memories, comparing the period of six years
since the accident in this case with the ten years in the unreported
case of | ||||
| 13. |
There was some suggestion by Mr William Norris QC, for Mr McGregor,
that the judge did not focus on the need for Mr McGregor to establish
only more than minimal post-writ delay, having regard to the near
three-year period of pre-writ delay. However, I am satisfied, from
passages to which I now refer in the judgment, that that is exactly
what she had in mind. At page 3G-H, in referring to the various
propositions recently set out by this court in | ||||
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| 14. | At page 7B she said: | ||||
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| 15. | Finally, at page 9D-G she said: | ||||
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| 16. |
The judge, having stated that she proposed to allow Mr Miles's appeal
for those reasons, added that, in exercising her discretion in the
matter, she had taken into account his possible personal contribution
to the delay and the fact that his possible lack of any remedy against
his solicitors for that reason if the action were struck out would
cause him substantial hardship. She cited | ||||
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| 17. | The only issue in this appeal when it started was whether the judge was correct in concluding that there was no substantial risk of an unfair trial and no likelihood of serious prejudice to Mr McGregor. Mr Miles has not cross-appealed the judge's finding of inordinate and inexcusable delay, though Mr Foskett, on his behalf, sought to identify and confine it. He put it at about two years for the three-year period of post-writ delay, suggesting that even with proper expedition it would probably have taken at least two years for this contest on liability and quantum to reach trial. | ||||
| 18. |
The applicable principles are well established and are now conveniently
gathered together in the judgment of Peter Gibson LJ, with whom
Hobhouse and Neill LJJ agreed, in | ||||
| 19. |
Mr McGregor's main challenge to the judge's ruling stems from her
observation towards the end of her judgment that she had taken into
account the substantial hardship to Mr Miles which dismissal would
cause him, given his possible lack of remedy against his solicitors
arising from his own possible contribution to the delay. Mr Norris
submitted that she was wrong to have regard to the possible
non-availability of an alternative remedy and to balance the
consequential potential hardship to Mr Miles against any hardship to Mr
McGregor in the conduct of the trial. That consideration, submitted Mr
Norris, was plainly wrong in law, having regard to the majority's view
in | ||||
| 20. | In my judgment, the judge's reference to the possible lack of alternative remedy was an unnecessary afterthought, adding nothing of relevance to the reasoning of her decision nor vitiating it. That reasoning did not involve an exercise of discretion or of balancing hardship. Given her finding that a fair trial was possible and that such post-writ prejudice as existed was no more than minimal, it did not need to. I have already referred to what she said at page 9D-G of the transcript of her judgment. She reached and expressed her conclusion at page 10C-E, just before the passage complained of by Mr Norris. This is what she said: | ||||
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| 21. | In the absence of a finding by her that there was a substantial risk of the impossibility of a fair trial or a likelihood of serious prejudice to Mr McGregor, there was nothing to balance against Mr Miles's entitlement to proceed with his claim. Accordingly, I consider that it is not for this court to consider the issues afresh and make its own decisions on them. Its role is simply to consider whether there was material before the judge on which she could properly decide as she did, keeping well in mind the reluctance of the court to interfere in such issues of secondary fact, the determination of which is ordinarily the province of the judge. | ||||
| 22. |
Although there are two overlapping considerations, the possibility of
an unfair trial and the likelihood of prejudice to Mr McGregor, the
available evidence before the judge focused on the latter. As to the
potential prejudice in the dimming of witnesses's memories, even when
aided with timely witness statements, the judge gave careful attention
to it, in particular to the cautionary words of Stuart-Smith LJ in | ||||
| 23. | There is the other claimed head of prejudice, inability on the part of Mr McGregor to protect himself in costs because Mr Miles has not formulated or documented his claim sufficiently carefully to enable him to make an offer in settlement or a payment into court. The judge noted and accepted that Mr McGregor's solicitors were caused some difficulties by that, but was of the view that they did not imperil the safety of the trial and were not likely to cause serious prejudice to him. In my judgment, that was a view she was entitled to take on the material before her, no doubt having regard to the ultimate discretion which the trial judge would have in such matters of costs at the conclusion of the trial and to the probability that Mr Miles will succeed at least in part of his claim. It is certainly not a matter on which I would consider it proper to substitute my own view for that of the judge. Accordingly, I would reject the first ground of appeal, the only one initially advanced on behalf of Mr McGregor. | ||||
| 24. |
In the course of argument in the appeal the court and counsel learned
of the decision of another constitution of the court in | ||||
| 25. |
Now, armed with the revised judgments and a number of other
authorities, Mr Norris has argued that this case is indeed one of abuse
of process justifying strike-out regardless of any question of
prejudice. He says, by reference to a catalogue mainly of failures by
Mr Miles and his solicitors to comply with the automatic directions in
personal injury actions, that their conduct satisfies the criteria for
abuse of process now clearly stated in | ||||
| 26. |
Nourse LJ, with whom Pill and Thorpe LJJ agreed, expressed those
criteria as follows at page 12 | ||||
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| 27. |
Thorpe LJ expressly endorsed that proposition, at page 25 of the
transcript of the judgments | ||||
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| 28. |
Those clear statements of the law, as the passage from Thorpe LJ's
judgment indicated, give emphasis to previous comparatively recent
dicta of this court, in particular the following prompting of Lord
Woolf MR, giving the judgment of the court in | ||||
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| 29. |
The emphatic articulation and the application by the court in
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| 30. |
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| 31. |
At | ||||
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| 32. |
My summary of the circumstances of this case show that it is a far less
serious case of culpable delay than that in | ||||
| 33. | Mr Foskett has relied on the obvious and great contrast between the two cases. He has also gone to some trouble to analyse and attempt to mitigate the delays here upon which Mr Norris has relied in his catalogue of breaches of the rules in support of this ground of appeal. But, overall, Mr Foskett's point is a simple one, namely, that there is, sadly, nothing exceptional about this case, certainly nothing to make it untypical of the run of average inordinate and inexcusable delay cases that come before the courts. | ||||
| 34. |
I am of the clear view that the circumstances of this case are not
exceptional and could not be characterised as an abuse of process as
applied to such an issue by the decision of this court in | ||||
| 35. | Accordingly, I would dismiss the appeal. | ||||
| 36. | LORD JUSTICE ROBERT WALKER: I agree that this appeal should be dismissed for the reasons stated by my Lord. | ||||
| Order: appeal dismissed with costs; legal aid taxation of the respondent defendant's costs. |