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The Times

Monday, November 21 2016

Frances Gibb and Jonathan Ames bring this morning’s must-read of all things legal, including news, comment and gossip.

Today

  • Truss may have acted illegally, says former lord chief justice
  • Scots and Welsh to intervene in Brexit Supreme Court hearing
  • Third-party litigation funders take £30m hit in Excalibur
  • Appeal Court in landmark order banning naming of family judge
  • Top judges asked to lift secret order closing royal wills
  • Comment: Stop the taxman from invading privacy
  • Blue Bag diary: Giuliani falls victim to The Brief jinx
  • More Blue Bag: March of 'lawbots' continues

Plus the new Brief Premium ...

  • Ministers must act on gender pay gap reporting, says Cherie Blair, QC
  • Finance focus: Banking on change -- Trump rips up reforms; UK in-house lawyers braced for regulation

Tweet us @TimesLaw with your views.

 
 
 
Story of the Day

Truss may have acted illegally, says former lord chief justice

Liz Truss has caused a “constitutional breakdown” and may have broken the law by failing to defend judges, a former lord chief justice has warned.

The lord chancellor’s near-silence is a breach of her statutory duty and, if she were taken to court, she would probably be found to have acted unlawfully, Lord Judge said.

“She is in relative terms a very inexperienced politician with no legal experience, who has been silent — and answered to Downing Street when she should have been independent,” he told The Times. “It is very serious. At the heart of it is a constitutional obligation on the lord chancellor to speak and on this issue there has been silence.”

Lord Judge, 75, who was lord chief justice from 2008 to 2013, spoke after a High Court ruling that parliament’s approval was needed to invoke Article 50, officially starting Brexit. The ruling was met with vitriol by some politicians and newspapers. The Daily Mail called the three judges “enemies of the people”.

Truss issued a statement supporting the independence of the judiciary but it was “too little, too late”, Lord Judge said. “The words she used were almost exactly the same as the prime minister used a couple of hours later,” he said. “That’s my explanation why it took her so long.

“If I am right, the lord chancellor asked the prime minister or No 10 to have some sort of input into what she said about attacks on the judiciary. And the whole point of the lord chancellor’s job is that he or she is there to take an independent line.”

Historically, Lord Judge said, the lord chancellor was seen as distinct from other ministers, with a role to safeguard judges “against some absurd proposal being discussed in cabinet, like, ‘Let’s get rid of the judges whose decisions we don’t like’ ”.

The role has been diminished, he argued, because the holder is just another minister, with responsibility for prisons as well as courts. “Now judges will ask: who is there to defend us? We can’t defend ourselves — and that ultimately has damaging effect on morale and recruitment.”

There are problems at present in filling some High Court posts.

  • Meanwhile, chins are wagging over the decision by Lincoln's Inn to postpone indefinitely Liz Truss's planned elevation to honorary bencher. The Daily Mail reported on Friday that the beleaguered lord chancellor was meant to have the honour bestowed on Thursday, but the plug was pulled at the last minute -- with a firm no comment coming from the inn. Could Truss end up being even less popular with the legal profession than Chris Grayling ...?

UK’s top judge faces fire over wife’s Brexit tweet tirade

The Brexit furore landed the UK’s top judge in the soup after his wife took to social media to denounce the referendum on Britain’s membership of the EU.

Two Conservative MPs criticised Lady Neuberger, whose husband, Lord Neuberger of Abbotsbury, is the president of the Supreme Court, in reaction to a series of tweets. She called the poll “mad and bad” and described support for Ukip as “a protest vote”.

Andrew Bridgen, the MP for northwest Leicestershire, and Andrew Rosindell, the MP for Romford, said that the judge, who will preside at the appeal on whether MPs should trigger Brexit, may have been compromised by his wife’s public statements. That claim was dismissed by a court spokesman.

Read the full interview with Lord Judge

 
 
 
 
News Round Up
Scots and Welsh to intervene in Brexit Supreme Court hearing

The Scottish and Welsh devolved governments will be joined by two other groups as interveners in the forthcoming Supreme Court hearing on whether ministers are obliged to grant MPs a vote on the trigger mechanism for leaving the EU.

Court officials said on Friday that Scotland’s lord advocate and the counsel general for Wales had been granted intervener status. The Independent Workers Union of Great Britain and a group of Britons abroad called the Expat Interveners were also granted official status.

In addition, the court confirmed that the attorney-general for Northern Ireland had made a reference regarding devolution issues relating to that jurisdiction and therefore permission to intervene was unnecessary.

It is understood that James Wolffe, QC, Scotland’s lord advocate, will make submissions regarding the relevance of points of Scottish law to the proceedings, so far as they do not also form part of the law of England and Wales. The hearing of Miller and Dos Santos v Secretary of State for Exiting the European Union is listed for December 5 to 8, with all 11 of the Supreme Court justices sitting together for the first time in the court’s history.

This month the High Court ruled that the government must allow parliament to vote on the Article 50 process set out in the Treaty of Lisbon that will trigger the UK’s departure from the bloc.

Third-party litigation funders take £30m hit in Excalibur

A group of litigation funders faces a £30 million-plus bill after the Court of Appeal said that they were liable for indemnity costs in a ruling that will profoundly affect the nascent third-party model of financing cases.

The ruling on Friday in the Excalibur case – which involved a long-running $1.6 billion-plus dispute over oil exploration in Kurdistan – should serve “as a warning to third-party funders of the potential perils of financing expensive international litigation without carrying out a rigorous analysis of the claim”, according to lawyers for Texas Keystone, the energy company that ended up on the winning side.

According to the lawyers at the London office of the US law firm Jones Day, the Court of Appeal “wholeheartedly supported” a ruling from Lord Justice Clarke in the High Court that “increased the exposure of Excalibur’s funders in this litigation”.

The lawyers said that the £30 million figure was “significantly above and beyond what was envisaged when the funders decided to support the litigation with the promise of lucrative rewards if Excalibur’s claim succeeded or was settled on favourable terms by the defendants”.

The ruling could hit hard the wallet of one of the City of London’s “magic circle” law firms. The Lawyer magazine reported that Clifford Chance had settled with one of Excalibur’s funders last year, with the firm understood to have agreed to pay the indemnity costs bill if the Court of Appeal upheld the High Court ruling.

A spokesman for Clifford Chance told The Brief that it would not confirm that point and that its agreement with Psari Holdings was confidential.

The Association of Litigation Funders searched for a positive angle to the ruling. It welcomed Lord Justice Tomlinson’s “reaffirmation of litigation funding as ‘an accepted and judicially sanctioned activity perceived to be in the public interest’”.

It also highlighted the Court of Appeal’s “recognition” of the association as the “voluntary regulator of professional funders”. The association also pointed out that the court had drawn a distinction between “professional funders” and “the funders [in the Excalibur case who] were inexperienced and did not adopt … a professional approach to the task of assessing the merits of the case”.

Appeal Court in landmark order banning naming of family judge

A council, a social worker and a police officer criticised by a family court judge investigating child sex abuse allegations have won a fight to remain anonymous.
The Court of Appeal ruled that the names of the council, social worker and police officer should not be included in the published judgment.

And in a novel move, it was also ordered that the family court judge who made the original criticisms cannot be named.

Three appeal judges concluded, in a judgment published on Thursday, that the council, social worker and police officer had not been treated fairly. Sir James Munby, Lord Justice McFarlane and Lord Justice Christopher Clarke had analysed the case at Court of Appeal hearings in London.

The hearings had been staged in public but limits had been placed on what journalists could report. The appeal judges said that “only the barest background” about the family court proceedings, which were overseen at private hearings, could be revealed.

They listed the case only as “re: W (A child)”. They also gave no indication of where the family court hearings had been staged.

Lord Justice McFarlane said that the family court judge had considered whether a number of children should be taken into council care. During that litigation, the family court judge had been asked to make decisions about the truth of sex abuse allegations made by a girl. He had dismissed these allegations and criticised the council involved, a number of professionals and, in particular, a social worker and a police officer.

The judge had said that he would name the council, the social worker and the police officer in a ruling which he would make public. However, the council, social worker and police officer complained of unfairness and asked appeal judges to rule that names should not be revealed.

Top court asked to look at bid to lift secret order closing royal wills

A Jersey accountant is attempting to take his long-running battle to rip off the veil of secrecy that covers the provisions of royal wills to the highest court in the country.

Robert Brown has applied to the Supreme Court for the justices to hear his case to open the will of Princess Margaret as he attempts to prove that he is her illegitimate child.

Brown has claimed that a 100-year policy – backed by a secret court practice direction – of sealing royal wills is “a huge and constitutionally important” issue.

Wills are generally open public documents, but since 1911, the wills of senior members of the royal family have been sealed. Brown has argued that the decision to seal royal wills was originally taken to protect Edwardian royal family members from embarrassing revelations in their wills and that it has been unconstitutionally maintained by the courts and a succession of attorneys-general.

Brown was refused leave by the Court of Appeal to apply to the Supreme Court, so he has made a direct submission. In April last year, the appeal court judges ruled that the secret practice direction raises no legal or conditional issue.

Despite maintaining that he is Princess Margaret’s illegitimate child, Brown has argued that his “identity is not the central issue” of his application. He said that instead, his bid to lift the secret practice order represents a “unique opportunity to define important British …. constitutional law as to separation of powers”.

In Brief

Senior Tories warn May to give up Brexit court appeal – The Times

Legalise cannabis to boost tax income and save millions, say MPs – Sky News

Lawyer brand Duchess of York’s Fake Sheikh claim as ‘defective and embarrassing’ – Mail on Sunday

Judge accuses City law firm of email ‘blackmail’ – The Lawyer

Villagers take Shell to High Court over Niger oil spills – The Times

Trump turns to Kirkland and Jones Day lawyers to lead justice team transition – Law.com

 
Byline
Comment

Stop the taxman from invading privacy Filippo Noseda

Senior judges in France ruled last month that a public register of trusts introduced in 2013 infringed the fundamental right to privacy and was therefore unconstitutional.

The French trust register had been introduced to fight tax evasion, but the judges on the country’s constitutional court held that the measure was disproportionate.

Two weeks later, the French data protection watchdog – the Centre National Numérique – asked the government to suspend the implementation of a database that could hold the biometric details of 60 million people and to study “alternative techniques that are respectful of the rights and freedoms” of citizens.

The right to privacy – as enshrined in the European Convention of Human Rights – applies to all aspects of everyday life. However, when it comes to tax collecting, governments seem oblivious to the principles that the French constitutional court and data protection watchdogs sought to uphold.

Closer to home, the UK has implemented a fully public register on the beneficial ownership of companies that bears a striking resemblance to the French trust register.

In addition, the EU is about to implement an automated system under which the name, date and place of birth, tax identification number, account balance and deposits and withdrawals, will be collected and transferred to the tax authorities of countries that have signed up to the common reporting standard. To date, 103 countries have signed up to the standard to fight tax evasion.

How do tax questions differ in essence from other, more prominent disputes over privacy? For instance, Apple’s dispute with the FBI over allowing it to “crack” the iPhone of the San Bernardino assailant Syed Rizwan Farook, or Max Schrems’ case against data transfer between the EU and the US, which led to the scrapping of the “safe harbour” data exchange agreement. Both of these scenarios were not about fighting to shield criminals, but about preserving the privacy rights of us all.

The French challenge to public trust registers is to be welcomed, as it confronts the growing trend for governments to impose mechanisms to collect, exchange and even publicly display financial information, regardless of any actual risk of tax evasion.

The issue of the lack of proportionality of the common reporting standard has already been raised by the European data protection supervisor and other European data protection bodies. However, it is not merely the privacy of millions of compliant taxpayers that is at stake; data security is also a key issue. Examples of large-scale data breaches are numerous, most recently including Tesco Bank and Friend Finder Network, but there are other examples of governments losing the sensitive data of their citizens.

The French court decision is an important first step in resisting the extension of automatic, indiscriminate information gathering. What is needed next is a UK test case to retract the register and delay implementation of the common reporting standard until these risks can be properly examined.

Filippo Noseda is a partner at Withers, an international law firm based in London

 
 
Tweet of the Day

Department of Justice #SuggestionsForTrumpsCabinet @WillBlackWriter https://t.co/oTEYtxP7Gb

Tim Christian @TimWChristian

 
 
Blue Bag

Giuliani falls victim to The Brief jinx

Curse of The Brief alert – only days after we tipped Rudy Giuliani as the likely lawyer to be handed the golden lavatory keys at the Department of Justice in Washington, Donald Trump has only gone and chosen another chap.

The other chap turns out to be Jeff Sessions, the junior senator from Alabama, who is also a former state attorney-general. The Bloomberg agency pointed out that Sessions – who read law at the University of Alabama before doing a brief stint in private practice – was one of the Donald’s earliest backers in congress.

Now 69, he became the US attorney for Alabama aged only 34. He will be faced with a very grown-up decision on taking office in January: how to deal with his boss’s campaign pledge to appoint a special prosecutor to investigate allegations that his opponent, Hillary Clinton, breached national security in her handling of confidential emails while she was Barack Obama’s secretary of state.

Sessions comes with some of his own baggage, according to sources in the US. The Times reported on Friday that he faces allegations that 30 years ago he described civil liberties groups as “un-American” – although to be honest, which Republican didn’t in the 1980s?

As for Giuliani, he is not finished yet. The latest betting is that he will be anointed with an even bigger role, possibly as Boris Johnson’s opposite as secretary of state. Although of course, there is always The Brief jinx.

March of the legal bots continues …

This summer the British teenager Joshua Browder let loose on the world a lawyer robot that successfully quashed 160,000 parking fines in London and New York and today the latest machine in a suit takes automated law up a notch by offering to draft nondisclosure agreements for entrepreneurs.

Lisa – or legal intelligence support assistant – is an app that is being pitched by its developers as a move that will fill an increasing gap in the provision of legal services to small businesses, while at the same time encouraging them to seek further advice.

Developed by AI Tech Support – a joint venture between Duthie & Co, a niche corporate law firm in London, and Chrissie Lightfoot, a Leeds-based legal profession consultant – Lisa is being offered free to small businesses.

Lightfoot explained that it is initially a marketing tool to encourage entrepreneurs and innovators to take legal advice when they might otherwise be deterred by a perception of prohibitive law fees.

Lisa will draft basic NDAs for both sides in a deal, which, according to Lightfoot, would normally cost each party up to £500 if left in the hands of a traditional, breathing, flesh and blood human lawyer.

Lightfoot is adamant that Lisa is not going to consign those blood and guts practitioners to the dustbin of history. Complicated legal problems and agreements will still need the human touch, she said, adding that lawyers should not fear the new robot. Whether Lisa will put the kettle on for the senior partner remains to be seen.

Navel gazing at Simmons & Simmons

Simmons & Simmons wins our latest hat tip for whacky marketing wheezes for its plan to allow partners and staff time off from the grind of logging up billable hours by advising clients so that they can sit around contemplating their navels.

Well, not exactly contemplating their navels, but putting on their thinking caps and doing some of that crazy blue sky thinking about how to modernise the firm.
The website Legal Week reported that so far 30 partners had tripped over each other to apply for the ten places in the innovation incubation think tank. That indicates that there is a significant appetite at the firm to get off the time-sheet hamster wheel.

As with all modern marketing gambits, the Simmons & Simmons initiative is replete with jargon. “This is a different way of thinking entirely and we look to embed this into the very culture of our firm,” a spokeswoman told The Brief.

“We will utilise the talent of our people to bring about innovation, with the ultimate goal being to deliver value to our clients. Innovation isn’t exclusive; the group will rely on everyone from right across the business to come up with creative ideas and solutions.”

Perhaps the firm will prove the cynics wrong, but it sounds a bit like offering time off for good behaviour.

 
 
Closing Statement

Keeping the bull short

Not all dismissals of an appeal are concise, but some have taken the art of concision to notable brevity, writes Gary Slapper.

Lord Hewart, the lord chief justice (1922-1940), once dismissed an appeal saying: “Counsel for the appellant has taken 17 objections to [his client’s] conviction. He has argued each one. We have listened to him and we find that each one comes to nothing. Nothing multiplied by 17 is still nothing. The appeal is dismissed.”

In a civil case in the 1940s in Alberta, Canada, Justice McLaurin was even more succinct in an extempore judgment after hearing a prolix submission from counsel in a civil appeal: “Bullshit; costs to the respondent.”

Gary Slapper is global professor at New York University and director of its London campus; Twitter @garyslapper