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The Times

Monday, February 27 2017

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

Breaking: Big fall in clinical negligence awards interest rate

The interest rate used in the calculation of damages awards to those suffering life changing injuries from clinical negligence has been slashed by the lord chancellor this morning. The Ministry of Justice announced the so-called discount rate would drop from 2.5 per cent to minus 0.75 per cent.

Liz Truss’s move will please claimant lawyers but concern the Medical Defence Union, which last month predicted a recalculation of the rate will increase professional indemnity costs for doctors.

Also today ...

  • Rule change age-bars Leveson as Lord Chief
  • Supreme Court justice backs no-fault divorce and cohabitee rights
  • Truss parks Bill of Rights until after Brexit
  • Terror law QC backs payment to al-Harith
  • Scotland’s top law officer charged with firearms offence
  • Public dangerously ignorant of inheritance tax reforms
  • Barrister disbarred for conspiring to sell £60,000 of cocaine
  • Comment: Balance power between judges and MPs, says Lord Neuberger
  • The Churn: Allen & Overy continues US hiring spree
  • Blue Bag diary: Exchange rate plays havoc with law firm numbers

Plus, see our plans for Brief Premium and archive of articles so far. Tweet us @TimesLaw with your views.

 
Story of the Day

Rule change age-bars Leveson as Lord Chief

The judge who chaired the controversial inquiry into press standards has been effectively age-barred from becoming England’s top judge under rule reforms agreed by Liz Truss, the lord chancellor.

Sir Brian Leveson (pictured) was the hot tip and frontrunner among senior judges to become Lord Chief Justice when Lord Thomas of Cymgiedd steps down later in the year.

However, the advertisement for what is the most powerful judicial position in England and Wales, published on Friday, stipulates that the candidate must be able to serve for at least four years. As Sir Brian turns 68 in June and the mandatory judicial retirement age is 70, he is prevented from putting his name forward for the post.

The Times reports that senior judges had widely backed Sir Brian for the role, saying that he was popular, knowledgeable and experienced. However, there were some concerns in Westminster that he carried too much “baggage” because of the report’s proposals for “light touch” press regulation.

One judicial source said: “This is a complete shock, left field – judges would not have known about it. It looks as if it has come from No 10 and the lord chancellor. It looks like a political decision, not a judicial one."

The other consequence of the new rule is that a second contender, Lady Justice Hallett, 67, is also eliminated because she also could not serve four years. A spokesman for the Judicial Appointments Commission, which published the advertisement and will select the new candidate, said that the four-year rule was the “JAC selection panel’s decision, following consultation with the lord chancellor as specified under statute in the Constitutional Reform Act 2005.”

The move throws the field open to the next more junior tier of judges. The frontrunners are: Lord Justice Gross, 65, who has held a top judicial position as senior presiding judge from 2013 to 2015; and Lady Justice Sharp, 61, who was a libel judge in the High Court and is seen as a high-flier as she went to the Court of Appeal after only four years in the High Court.

 
 
News Round Up
Supreme Court justice backs no-fault divorce and cohabitee rights

Ministers are failing the public by not legislating for no-fault divorce and by not giving cohabiting couples the same rights as those who are married, one of the UK’s most senior judges said yesterday.

Lord Wilson, a Supreme Court justice, said that the law should be changed so that couples in long-term cohabiting relationships should be given rights “analogous” to those who are married.

His comments will add to pressure on ministers, reports The Times, after the Court of Appeal last week rejected a claim by two heterosexual Londoners to be allowed to enter into a civil partnership, which would have given them similar rights to married couples. However, the court, in a split decision of two to one, said the government should review the law around opposite-sex couples and consider reform.

Lord Wilson, who is one of 11 justices on the UK’s highest court, strongly backed legislative reform to give all cohabitees enhanced rights. A senior family court judge for 12 years before being appointed to the Court of Appeal and then to the Supreme Court in 2011, Lord Wilson said that he and colleagues were “very disappointed” when attempts in the mid-1990s to eliminate the requirement for fault in divorce cases failed.

He spoke to Radio 4 yesterday to pay tribute to his colleague and friend, Sir Nicholas Wall, the former president of the family court, who committed suicide last week after being diagnosed with dementia. The Supreme Court justice said that Sir Nicholas found the approach of successive governments to divorce reform frustrating. He said that many senior judges – including Lord Wilson himself – agreed with the view that ministers were creating injustice by failing to legislate.

Severe cuts to the legal aid budget – which came into effect in 2013 and removed £270 million annually from family cases – were also putting children at risk because of a lack of access to legal advice, Lord Wilson said. “Many of the parents battling there – and the grandparents and others – they simply cannot present their cases effectively,” he said, claiming that family judges now faced a “plethora of litigants in person”, which was “clogging up the system” and “lowering morale” of the judges.

Truss parks Bill of Rights until after Brexit

A British Bill of Rights is still on the government’s agenda but it will be delayed until after MPs deal with legislation around the country’s departure from the EU, the lord chancellor confirmed.

Liz Truss, who is also the justice secretary, said in an interview last Friday that Brexit involved “major constitutional change” and therefore moves towards a Bill of Rights would be on hold – but not scrapped.

“The British Bill of Rights, whilst it remains a commitment, is not something we can do at the same time as we are putting through that Great Repeal Bill,” Truss told the Politics Home website. “That is going to affect the constitution ... it’s important we only do one constitutional reform at a time.”

Truss also ventured back into the debate over her response to some media reaction in the wake of the High Court ruling on Article 50 and Brexit. Many lawyers and other commentators criticised her for, in their view, not performing the lord chancellor’s statutory responsibility of defending judges.

Truss told the site that “we live in a free society and free democracy and we have a free press. It is very important that politicians don’t get into the business of policing headlines and saying what is acceptable or not acceptable to print … the independent judiciary and free press are bulwarks of our freedoms and we need to protect them jealously.”

Terror law QC backs payment to al-Harith

Ministers were not wrong to pay £1 million compensation to the British Muslim convert who was held in Guantanamo Bay and then went on to become a suicide bomber, the QC terror watchdog said at the weekend.

Speaking to the Daily Telegraph, Max Hill, QC, the head of Red Lion Chambers in London, said ministers at the time “cannot be held to account for a risk that was simply not present, not visible, not detectable at the time of the pay-out. We have to be more sophisticated in our criticism than that and more sophisticated in our solutions”.

The Blair government awarded Jamal al-Harith, originally Ronald Fiddler from Manchester, compensation in 2004 after he spent three years at the US detention base in Cuba.

Hill, who was appointed last week as the government’s independent reviewer of anti-terrorism legislation, said he opposed “draconian” measures clamping down on free speech online.

Scotland’s top law officer charged with firearms offence

Scotland’s top law officer has been charged with a firearms offence, it emerged on Friday (Jeremy Watson reports).

Richard Keen, QC, the advocate general, who is also a Conservative peer, is alleged to have contravened section two of the Firearms Act 1968 by failing to secure a shotgun.

Lord Keen of Elie, a former chairman of the Scottish Conservative Party who was made a life peer in 2015, is charged with breaching the legislation at his Edinburgh home on December 31 last year.

According to court papers, Lord Keen is alleged to have failed to comply with the conditions of his firearms certificate by not securing a 12-bore shotgun. The charge states that, according to the conditions, shotguns must at all times “be stored securely so as to prevent, so far as reasonably practicable, access to the shotguns by unauthorised persons”. The case is due to call at Edinburgh Sheriff Court on March 1.

One of Scotland’s leading lawyers, Lord Keen, 62, is a former Dean of the Faculty of Advocates and was appointed as advocate general in May 2015. He recently represented the UK government at the Supreme Court hearing on the triggering of Article 50, arguing that the consent of the Scottish parliament was not needed before negotiations on Brexit formally begin.

A UK government spokeswoman said: “We are aware Lord Keen is in correspondence with the procurator fiscal regarding a legal matter relating to an inadvertent breach of licence conditions.

“Having considered the issue carefully, we are satisfied that this matter has no bearing on Lord Keen’s ability to carry out his ministerial duties to the highest standard."

Public 'dangerously ignorant' of inheritance tax reforms

Half the British public is dangerously ignorant of inheritance tax rules and forthcoming reform, with some completely unaware that they will be subject to the charge when relatives die, lawyers have warned.

Research shows that 47 per cent of Britons are unaware of how assets are distributed after death. Another 60 per cent have not drafted wills and another 54 per cent do not have a record of all the accounts and investments held by their partners or other family members.

The issue is exacerbated, lawyers say, by the still-booming UK property market. The average UK house price is now more than £215,000 – £400,000 in London – meaning that many estates will be pushed over the present nil-rate band of £325,000 under which people pay no inheritance tax when pensions, savings and other assets are taken into account.

Reform is scheduled for April, which will go some way towards alleviating the problem. New rules will add an extra £100,000 to the threshold for properties that those leaving an inheritance have lived in and that they are leaving to a direct descendant.

Lawyers have described the reform is the most significant change to inheritance tax for decades. “Many people across the UK will be subject to inheritance tax without even knowing because the value of their estates will be higher than they realise,” said Gillian Coverley, a partner at the national law firm Irwin Mitchell, which commissioned the study.

“There are also many people whose estates are worth considerably more who could benefit from the new rules with a bit of extra planning and organising of their estates.”

She described the forthcoming reform as “positive”, saying that it was “the first time special status has been given to family members”.

Barrister disbarred for conspiring to sell £60,000 of cocaine

A criminal law barrister has been disbarred after being convicted of conspiring to supply cocaine with a street value of up to £60,000.

Omar Mohammed Khan, 31, was jailed for three years at Nottingham crown court last April after he and three other men admitted to charges of conspiring to supply more than 1kg of the class A drug.

Khan, who was dual qualified as a solicitor and barrister and specialised in criminal defence work, had been practising at a local law firm, The Johnson Partnership.

On Friday, the Bar Standards Board, the body that regulates barristers in England and Wales, disbarred Khan – who was was called to the Bar by Lincoln’s Inn in 2009 – after bringing three charges to a disciplinary tribunal.

It found him guilty of “engaging in conduct which is likely to diminish the trust and confidence the public places in him or the profession”. A spokeswoman for the board said: “A conviction for conspiring to supply a class A substance and subsequent prison sentence is incompatible with membership of the Bar.”

At sentencing, it emerged that Khan and his three fellow defendants had been involved in at least two deliveries of uncut cocaine from the south of England.
When diluted, the resale value of that amount of cocaine would be at least £50,000 and possibly upwards of £60,000.

In Brief

Slater & Gordon revenues slump as lenders circle – Law Gazette and Legal Futures

Could court ruling throw whiplash reform into doubt? – Insurance Business

Grandmother deported despite living In Britain for past 30 years – BuzzFeed

Fire chief jailed considers suing police after being falsely accused of historic child sex abuse -- Daily Telegraph

Legal challenge confronts Trinidad’s anti-gay laws – Erasing 76 Crimes blog

OJ Simpson set to walk free 24 years early to enjoy pension millions -- Sunday Express

 
 
 
Byline
Comment

Balancing power between judges and MPs Lord Neuberger

Maintaining an appropriate balance between judicial intervention and judicial restraint is key to the role of any court when carrying out its public law functions.

The Supreme Court, as the final appeals court, hearing only cases of general public importance, is particularly sensitive to the delicate balance of functions between the branches of the state, particularly given the informality and flexibility of our constitutional arrangements.

Parliamentary sovereignty is undoubtedly the foundational principle of our constitution, and indeed that was reinforced and upheld by the recent [Brexit-Article 50] decision in Miller, emphasised by both the majority and the minority judgments.

However, an important aspect of this is that a court should be able to exercise control over executive action where it might be seen to disturb this balance – in the recent case of Belhaj considering the somewhat thorny doctrine of act of state, we warned against the possibility of affirming a legal principle that might permit the executive to “dictate” to the judiciary in the absence of “clear legislative sanction”.

But in our common law system, we should not lose sight of the fact that judges can make the law, although parliamentary sovereignty requires that judge-made law is not inconsistent with statutory law.

As Lord Reid famously once said: “We do not believe in fairy tales any more, so we must accept the fact that for better or worse, judges do make law.” Quite so. However, it is important to emphasise that at the Supreme Court we are well aware of our duty to respect the boundaries of our role.

A recent example is to be seen in the recognition by Lord Toulson in Paulley, which concerned the extent of the statutory duty of a bus operator to insist on a mother with a pram vacating a space intended for wheelchair users. Rather than making new law, we felt that, in this difficult area, fresh legislative intervention would be desirable.

An additional safeguard against judicial lawmaking which is subsequently thought to be wrong exists in the fact that, where the law has been developed by a judge through a decision which is thought to be inappropriate, parliament can always reverse the decision by legislation.

And, in a speech concerned with the role of judges under a constitutional system based on parliamentary sovereignty, it is perhaps appropriate to end with a reminder that any judicial decision can be revoked by parliament through a statute.

Lord Neuberger is president of the UK Supreme Court; this is an extract from his recent speech for the Oxford Law Faculty’s Neill Lecture, Twenty Years a Judge: Reflections and Refractions

 
 
Tweet of the Day

Nothing quite like working on a sunny Sunday #barrister #lawyer #lawyerlife #familylaw #chambersemptyonweekends #Sunday

Cath Devine @DevineBarrister

 
 
Blue Bag

Exchange rate plays havoc with law firm numbers

Brace yourselves for start of the City of London law firm financial reporting season. It’s a bit like the Glorious Twelfth, but with lots of money, slightly fewer bangs and not quite as much plucking.

Out of the trap with its own bang at the end of last week was Hogan Lovells. Transatlantic mergers have been in the spotlight over the past few days after Eversheds became Eversheds Sunderland and Norton Rose Fulbright remained Norton Rose Fulbright, but took over Chadbourne & Parke.

HogLovs is now an old stager in the transatlantic firmament, having become one back in 2010. And it was keen to demonstrate that while tying the knot over the pond is increasingly fashionable, it’s been making a good fist of its merger for some time.

The problem with transatlantic businesses is that fluctuations in the sterling-dollar exchange rate can render determining whether a practice is a success or in the dumps a bit of a mug’s game.

“If exchange rates had remained constant,” a statement from the firm said, “we would have seen a revenue increase of 7.9 per cent …” – instead of the 5.7 per cent that it actually recorded.

Meanwhile, an even older transatlantic firm, Reed Smith – which got hitched to Richards Butler (remember them) about ten years ago – saw global turnover slip by more than 4 per cent last year. The Lawyer magazine reported that it was the second consecutive year of falling revenue at the Pittsburgh-based practice. The firm shed 81 lawyers over 2016, 5 per cent of its total.

Bouncing off the walls

There can’t be too many lawyers in the UK who have even heard of parkour, let along be able to spell it or even begin to define it. To save readers from reaching for the nearest search engine, the word derives from the French parcours du combatant.

And at the risk of offending aficionados, the pastime involves little more than young(ish) people running around city streets jumping over pillar boxes, park benches and bouncing off the odd post office wall. Anyone can play – all you need is a pair of trainers.

We could have probably left it there – as a temporary obsession of teenagers with energy to burn, but who aren’t much cop at football – if it hadn’t been for two sport lawyers at Muckle, a law firm in Newcastle.

Partner John Devine and associate Anthony Coultas advised Parkour UK on its successful application to become Britain’s most recently officially recognised sport.
Tracey Crouch, the sports minister, announced the development last month, but the firm got round to promoting its involvement only a few days ago. So much for the lawyers’ own nimble alacrity.

 
 
The Churn

A run down of the big partner and team moves this week

Allen & Overy continues US hiring spree

London “magic circle” firms are feeling the heat after a spate of transatlantic moves by rivals as one of the five-strong elite has gone on a stateside hiring spree.

Allen & Overy has poached a three-partner securities team for its New York office from Paul Hastings. The trio – Bill Schwitter, Michael Chernick and Jeffrey Pellegrino – brings the firm’s number of partners specialising in leveraged finance in the Big Apple to 12. It is understood that A&O has recruited 11 partners to its US operations in the last eight months alone.

In addition to A&O, three other magic circle players are in New York – Clifford Chance, Freshfields Bruckhaus Deringer and Linklaters. But all four have had patchy at best results in the highly competitive US legal market. Firms in the second “silver circle” tier have taken the merger route, including DLA Piper, Hogan Lovells and very recently Eversheds Sutherland and Norton Rose Fulbright.

Elsewhere on the global legal profession rollercoaster, Beau McLaren has joined Holman Fenwick Willan’s Dubai office. The construction lawyer joins the City-based firm as a partner, moving over from the local office of Dentons.

Back in Blighty, Holman Fenwick Willan also lured Ben Mellors, another construction specialist, to its partnership from Beale & Company, a firm with offices in the UK, Ireland and the UAE.

Outside of the capital and up to the burgeoning “northern powerhouse”, Kate Payne and Vikki Massarano have jumped ship from DLA Piper to become the first partners at the new Leeds office ARC Pensions Law. They will be joined by three associates.

 
 
Closing Statement

Body of evidence

Victorian newspapers have been gripped by the story of a housewife whose body was found partly concealed in the bush after she disappeared last year (James Morton reports on his tour of Australia).

There was much talk of an imminent arrest and last week a man visited his lawyer, who described him as the No 1 suspect. There is also speculation about why no arrests were made until the woman’s body was found.

Yet although Australia has never been as squeamish as England in no-body cases – a doctor was convicted back in 1909 on circumstantial evidence – there always remains the possibility that defending counsel will say “I call my last witness – Mrs Smith” and bouncing up to the witness box comes the supposed victim.

In fact, in Queensland in 2003, there was nearly a nasty little legal accident when Leonard Fraser, a rock spider (which is what Australians call a child molester), was committed for trial on a charge of murdering a girl who had been missing for some years after he had apparently confessed to a cellmate.

Fortunately, the girl telephoned the police shortly before the trial started to say, “I hear you’ve been looking for me”. She had been living with a boyfriend in the far north.

James Morton is a former criminal law solicitor and now author