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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 >> Hughes Jarvis Ltd vSearle & Anor [2019] EWCA Civ 1 (15 January 2019) URL: http://www.bailii.org/ew/cases/EWCA/Civ/2019/1.html Cite as: [2019] EWCA Civ 1, [2019] WLR 2934, [2019] 1 WLR 2934, [2019] WLR(D) 12 |
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ON APPEAL FROM THE COUNTY COURT AT OXFORD
HH Judge Melissa Clarke
C02UB930
Strand, London, WC2A 2LL |
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B e f o r e :
LORD JUSTICE LEGGATT
and
LADY JUSTICE NICOLA DAVIES
____________________
HUGHES JARVIS LIMITED |
First Appellant/ Claimant |
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- and - |
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DAVID SEARLE |
Respondent/ Defendant |
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- and - |
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NEIL DAVID MARTIN JARVIS |
Second Appellant/ Third Party |
____________________
Mr Oliver Hyams (instructed by Duncan Lewis) for the Respondent
Hearing date : 12 December 2018
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Crown Copyright ©
Lord Justice Patten :
"I have to give you the same warning that I give every witness who has a break halfway through their evidence, which is that it is extremely important that you do not speak to anybody about the evidence you have given or the evidence that you are about to give during this short break. That includes your legal advisers, that includes anyone on the phone, that includes your wife if she phones up. Just say: "I can't talk about it". Do not discuss any evidence, all right? Just for this short break."
"MR JARVIS: May I just ask a question on process? If it gets to 4.30 and we haven't finished, does that prevent me talking to my legal counsel overnight?
JUDGE CLARKE: Yes, it does, I am afraid. That is why it is nice to try and get it sorted. But certainly you cannot have any discussions with your counsel about your evidence. You can about very ordinary matters like what time you are attending in the morning, etc.
MR JARVIS: Would that not disadvantage me?
JUDGE CLARKE: No, not at all. It ensures that the evidence that you give is completely untainted by anything anyone may say to you."
"I have to give you the same warning that I gave you at lunchtime, but it is an important one, not discuss the evidence you have given or any evidence you may give with anybody."
"JUDGE CLARKE: [addressing counsel for the claimant]: I do not know whether there is very much that you do need to discuss today. What did we say that you would need to sort out overnight? Between the two of you, you were going to think about something overnight. Oh, the pleadings.
MS TOMAN: Your Honour, and there are going to be some architects' drawings, but I think we have got those already. So that is just a matter of producing.
JUDGE CLARKE: The pleadings, I do not think, is a matter you need to really discuss with Mr Jarvis at this stage. That is really something that is going to be addressed in closing. So you will be able to take instructions about that. In terms of identifying architects' drawings then you can discuss that with Mr Jarvis, that does not seem to be an issue.
MR JARVIS: I have some administration issues of things I think they should have provided that I'd like them to provide. Can I talk to them about that?
MR HYAMS: The problem is, your Honour, adducing evidence after someone has been cross-examined is not really how this works.
JUDGE CLARKE: No, I think your opportunity to adduce evidence has passed, really. It is important, as I say, that you do not discuss your evidence with anybody. So if we can limit only conversations with your legal counsel to identification of architects' plans, you will have the opportunity then of course to give further instructions after your evidence has finished tomorrow."
"because they breached the explicit order that I made and I find them to be wilful disobedience of the court order. Mr Jarvis said, 'Oh well, you know, I didn't really know, I was just clarifying'. He is an intelligent man, he is a successful property dealer, I am satisfied that those are contempt."
"It is not the type of contempt of court where Mr Jarvis has shouted abuse at the judge, unfortunately that happens from time to time. I have no personal involvement or interest in it".
"I have not done it lightly, I have done it with some consideration, but this has happened in my courtroom today, I cannot ignore it and it demands an immediate response. My immediate response is to remand him in custody, as in fact I wanted before lunch, I was considering doing over the lunch period, I have made the findings of contempt that I have made. Of course he will have the opportunity before the bus leaves at 4 o'clock, for whichever prison he is going to tonight, to take legal advice from you and from the solicitors and of course tomorrow morning as well."
"This is not about preventing further harm, this is about marking the seriousness of what has happened. I have made my decision about remanding him in custody and I do so because I do not yet know what is happening with this claim. I cannot trust Mr Jarvis not to effectively interfere with his own evidence by speaking to other people and that is the reason why I am doing that. So, if he wants more time before sentencing, that is fine, he will be remanded in custody while that happens. I am very happy after I hear the application to dismiss the claim tomorrow, to have a further discussion about whether it is appropriate to sentence him then and there or whether that should be adjourned until 2 o'clock or to another day and for an application for bail to be made or for release from remand in custody can be made at that point. This is the proposal that I am going to do for today and for tomorrow morning."
"It doesn't matter for the purposes of my consideration of whether this trial can now be heard fairly what Mr Jarvis thought I meant at the time, it makes no difference to how I assess his credibility or his reliability or make a decision about whether a fair trial can continue."
Committal
"(1) If any person—
(a) wilfully insults a judge of the county court, or any juror or witness, or any officer of the court during his sitting or attendance in court, or in going to or returning from the court; or
(b) wilfully interupts the proceedings of the county court or otherwise misbehaves in court;
any officer of the court, with or without the assistance of any other person, may, by order of the judge, take the offender into custody and detain him until the rising of the court, and the judge may, if he thinks fit,—
(i) make an order committing the offender for a specified period not exceeding one month to prison, or
(ii) impose upon the offender, for every offence, a fine of an amount not exceeding £2,500 or may both make such an order and impose such a fine.
(2) A judge of the county court may at any time revoke an order committing a person to prison under this section and, if he is already in custody, order his discharge."
"a judge should act of his own motion only when it is urgent and imperative to act immediately. In all other cases he should not take it upon himself to move. He should leave it to the Attorney-General or to the party aggrieved to make a motion in accordance with the rules in R.S.C., Ord 52. The reason is so that he should not appear to be both prosecutor and judge: for that is a role which does not become him well."
"4.1 Where the committal proceedings relate to a contempt in the face of the court the matters referred to in paragraph 4.3 should be given particular attention. Normally, it will be appropriate to defer consideration of the respondent's actions and behaviour to allow the respondent time to reflect on what has occurred. The time needed for the following procedures should allow such a period of reflection.
4.2 A Part 8 claim form and an application notice are not required for contempt falling under Section 5 of Part 81, but other provisions of this Practice Direction should be applied, as necessary, or adapted to the circumstances.
4.3 The judge should—
(1) tell the respondent of the possible penalty that the respondent faces;
(2) inform the respondent in detail, and preferably in writing, of the actions and behaviour of the respondent which have given rise to the committal application;
(3) if the judge considers that an apology would remove the need for the committal application, tell the respondent;
(4) have regard to the need for the respondent to be—
(a) allowed a reasonable time for responding to the committal application, including, if necessary, preparing a defence;
(b) made aware of the possible availability of criminal legal aid and how to contact the Legal Aid Agency;
(c) given the opportunity, if unrepresented, to obtain legal advice;
(d) if unable to understand English, allowed to make arrangements, seeking the court's assistance if necessary, for an interpreter to attend the hearing; and
(e) brought back before the court for the committal application to be heard within a reasonable time;
(5) allow the respondent an opportunity to—
(a) apologise to the court;
(b) explain the respondent's actions and behaviour; and
(c) if the contempt is proved, to address the court on the penalty to be imposed on the respondent; and
(6) where appropriate, nominate a suitable person to give the respondent the information. (It is likely to be appropriate to nominate a person where the effective communication of information by the judge to the respondent was not possible when the incident occurred.)
4.4 If there is a risk of the appearance of bias, the judge should ask another judge to hear the committal application.
4.5 Where the committal application is to be heard by another judge, a written statement by the judge before whom the actions and behaviour of the respondent which have given rise to the committal application took place may be admitted as evidence of those actions and behaviour."
"a judge should only act of his own motion in a matter of contempt if (a) the contempt is clear, (b) the contempt affects a trial in progress or about to start, (c) it is urgent and imperative to act immediately in order to prevent justice being obstructed and undermined and to preserve the integrity of the trial and (d) no other procedure will do if the ends of justice are to be met."
Strike out
"27. In my judgment, there can be no doubt that the court does have jurisdiction to strike out a claim or any severable part of a claim of its own volition whether immediately before or during the course of a trial. This is clear from the combined effect of CPR rr 1.4, 3.3 and 3.4 as well as 3PD 1.2, and by reason of its inherent jurisdiction.
"28. However, the occasion to exercise this jurisdiction after the start of the trial is likely to be very rare. The normal course will be for all applications to strike out a claim or part of a claim on the merits to be made under CPR rr 3.4 or 24.2 and determined well in advance of the trial."
"54. It would be open to this Court to allow the appeal against the judge's refusal to strike out the petition on that ground alone. But, for my part, I would allow that appeal on a second, and additional, ground. I adopt, as a general principle, the observations of Mr Justice Millett in Logicrose Ltd v Southend United Football Club Limited (The Times, 5 March 1988) that the object of the rules as to discovery is to secure the fair trial of the action in accordance with the due process of the Court; and that, accordingly, a party is not to be deprived of his right to a proper trial as a penalty for disobedience of those rules - even if such disobedience amounts to contempt for or defiance of the court - if that object is ultimately secured, by (for example) the late production of a document which has been withheld. But where a litigant's conduct puts the fairness of the trial in jeopardy, where it is such that any judgment in favour of the litigant would have to be regarded as unsafe, or where it amounts to such an abuse of the process of the court as to render further proceedings unsatisfactory and to prevent the court from doing justice, the court is entitled - indeed, I would hold bound - to refuse to allow that litigant to take further part in the proceedings and (where appropriate) to determine the proceedings against him. The reason, as it seems to me, is that it is no part of the court's function to proceed to trial if to do so would give rise to a substantial risk of injustice. The function of the court is to do justice between the parties; not to allow its process to be used as a means of achieving injustice. A litigant who has demonstrated that he is determined to pursue proceedings with the object of preventing a fair trial has forfeited his right to take part in a trial. His object is inimical to the process which he purports to invoke.
55. Further, in this context, a fair trial is a trial which is conducted without an undue expenditure of time and money; and with a proper regard to the demands of other litigants upon the finite resources of the court. The court does not do justice to the other parties to the proceedings in question if it allows its process to be abused so that the real point in issue becomes subordinated to an investigation into the effect which the admittedly fraudulent conduct of one party in connection with the process of litigation has had on the fairness of the trial itself. That, as it seems to me, is what happened in the present case. The trial was "hijacked" by the need to investigate what documents were false and what documents had been destroyed. The need to do that arose from the facts (i) that the petitioners had sought to rely on documents which Nigel Tobias had forged with the object of frustrating a fair trial and (ii) that, as the judge found, Nigel Tobias was unwilling to make a frank disclosure of the extent of his fraudulent conduct, but persisted in his attempts to deceive. The result was that the petitioners' case occupied far more of the court's time than was necessary for the purpose of deciding the real points in issue on the petition. That was unfair to the Blackledge respondents; and it was unfair to other litigants who needed to have their disputes tried by the court.
56. In my view, having heard and disbelieved the evidence of Nigel Tobias as to the extent of his fraudulent conduct, and having reached the conclusion (as he did) that Nigel Tobias was persisting in his object of frustrating a fair trial, the judge ought to have considered whether it was fair to the respondents - and in the interests of the administration of justice generally - to allow the trial to continue. If he had considered that question, then - as it seems to me - he should have come to the conclusion that it must be answered in the negative. A decision to stop the trial in those circumstances is not based on the court's desire (or any perceived need) to punish the party concerned; rather, it is a proper and necessary response where a party has shown that his object is not to have the fair trial which it is the court's function to conduct, but to have a trial the fairness of which he has attempted (and continues to attempt) to compromise."
"71. In our judgment, this decision is authority for the proposition that, where a claimant is guilty of misconduct in relation to proceedings which is so serious that it would be an affront to the court to permit him to continue to prosecute his claim, then the claim may be struck out for that reason. In the Arrow Nominees case [2000] 2 BCLC 167 , the misconduct lay in the petitioner's persistent and flagrant fraud whose object was to frustrate a fair trial. The question whether it is appropriate to strike out a claim on this ground will depend on the particular circumstances of the case. It is not necessary for us to express any view as to the kind of circumstances in which (even where the misconduct does not give rise to a real risk that a fair trial will not be possible) the power to strike out for such reasons should be exercised. There is a valuable discussion of the principles by Professor Adrian Zuckerman in his Editor's Note entitled "Access to Justice for Litigants who Advance their case by Forgery and Perjury" in (2008) 27 CJQ 419 .
72. We accept that, in theory, it would have been open to the judge, even at the conclusion of the hearing, to find that Mr Masood had forged documents and given fraudulent evidence, to hold that he had thereby forfeited the right to have the claims determined and to refuse to adjudicate upon them. We say "in theory" because it must be a very rare case where, at the end of a trial, it would be appropriate for a judge to strike out a case rather than dismiss it in a judgment on the merits in the usual way.
73. One of the objects to be achieved by striking out a claim is to stop the proceedings and prevent the further waste of precious resources on proceedings which the claimant has forfeited the right to have determined. Once the proceedings have run their course, it is too late to further that important objective. Once that stage has been achieved, it is difficult see what purpose is served by the judge striking out the claim (with reasons) rather than making findings and determining the issues in the usual way. If he finds that the claim is based on forgeries and fraudulent evidence, he will presumably dismiss the claim and make appropriate orders for costs. In a bad case, he can refer the papers to the relevant authorities for them to consider whether to prosecute for a criminal offence: we understand that this was done in the present case."
"17. Secondly, Ms Toman submits that a fair trial is also still possible, despite the finding of contempt relating to Mr. Jarvis speaking to Sean O'Neill of Lime Court Finance, as the court may simply disregard the relevant parts of Mr. Jarvis's evidence which have been tainted by that conversation. I do not consider that I can. First of all, I accept Mr. Hyams submission that the court cannot be entirely satisfied that it knows the full extent of the conversations with Mr. O'Neill, what was said, how many conversations there were and who instigated them and therefore how it can properly identify the evidence which has been tainted and which has not. He makes the fair point that if the mere fact of Mr. Jarvis speaking to Mr. O'Neill about the proceedings in order to, as Mr Jarvis put it, 'clarify the evidence' he gave the day before adversely affects my view of him as a credible and honest witness, which it does, and if my view of his reliability is also affected because by speaking to Mr. O'Neill he sought to change the evidence he had given the day before, then how can I accept his evidence about the extent and the content of that conversation?"
"20. Fourthly, Miss Toman submits that Mr. Jarvis's evidence is, in fact, of very little relevance to the counterclaim and so I can disregard it entirely and still determine the counterclaim. In relation to the claim, to the extent that I am not satisfied that I can ring fence any tainted evidence, she submits that I can draw adverse inferences against Mr Jarvis's credibility and reliability and be cautious of accepting any of his evidence except where it is supported by contemporaneous documentation. She submits that since his evidence is of limited relevance on the counterclaim, I should allow the trial to continue and permit her to cross-examine Mr. Searle and test his evidence.
21. Mr. Hyams describes Ms Toman's submission that Mr Jarvis's evidence was of very little relevance to the counterclaim, as 'unusual'. He reminds me that the counterclaim is supported to a significant extent by the single joint expert, and that the claimant and Mr Jarvis simply put Mr. Searle to proof of it, so it is difficult to understand how Mr Jarvis's evidence is not important now. I accept that submission. Mr Jarvis's evidence would be important and is relevant, but as the tribunal in Chidzoy found, I cannot trust it given Mr Jarvis's flagrant disregard of my repeated orders not to discuss his evidence with anybody else, particularly given his statement that he spoke to Mr Neill in order to clarify the evidence he had given the day before, and did change his evidence in cross-examination as a result of that conversation. For those reasons I am satisfied of the first limb in Chidzoy , namely that Mr Jarvis has conducted the proceedings unreasonably."
"22. Turning to the second limb – is it possible for there to be a fair trial? I have set out the difficulties in trying to excise the infected evidence from other evidence given by Mr Jarvis and I am satisfied I could not do so in a way that would enable a fair trial. What would be the effect if I was to refuse the strike out application and allow the trial to continue, but make the adverse inference that I must inevitably, in the circumstances, make against Mr. Jarvis, namely that I cannot trust his evidence as either credible or reliable? It became clear during his cross-examination that there is no documentary evidence in support of his key evidence about the suitability of the proposed alternative accommodation, in particular details of the room sizes, garden, and parking. In any event, he appeared to resile during the course of yesterday morning from some of that key evidence that he had given the day before. In those circumstances it seems that the claim must inevitably fail. Accordingly the only purpose in refusing the strike out of the claim and the counterclaim, therefore, would be to preserve the right of Mr. Jarvis to have his counsel cross-examine Mr. Searle in order to try and undermine his case on the counterclaim. Is that a fair trial? It is not, in my judgment, it is merely trying to salvage whatever can be salvaged from the damage caused by Mr Jarvis's actions, for the benefit of Mr Jarvis and the claimant. The second issue which is highlighted by Masood v. Zahoor is whether, in fact, despite the misconduct the court should try and prevent the further waste of precious resources. Because of Mr Jarvis's conduct we have now wasted an entire day of a three day trial and there is no way in the time remaining, which is half a day, that we could get through cross-examination of the defendant and his two witnesses, it is not possible. This would have to come back for at least another day, and possibly a day and a half. In my judgment the fairness of the trial has been materially jeopardised by Mr Jarvis's actions.
23. I remind myself that strike out is draconian and a last resort. I have considered Miss Toman's submission, found at the end of her skeleton argument, relating to the evidence that Mr. Jarvis has given about the potentially disastrous consequences for the claimant company and for him personally in the event that these proceedings are not successful. She submits that those consequences are such that it would not be just and proportionate to strike out the claim and the defence to counterclaim. My difficulties with this submission are three-fold. First, the evidence I have heard is confused and contradictory and has changed during the course of Mr Jarvis's cross-examination, the start of his re-examination and what he has said afterwards. Second, this evidence is, in my judgment, tainted by his conversation with Mr. O'Neill yesterday. Third, the consequences may well be disastrous for the company and for Mr. Jarvis personally - I cannot know if they are or not - but if they are, they are entirely of Mr. Jarvis's own making.
24. I remind myself, per Masood v. Zahoor , that the fairness of the trial is a central factor but not the only one: where a claimant is guilty of extremely serious misconduct, as I am satisfied Mr Jarvis is in this case, I may strike out the claim and counterclaim if it would be an affront to the court to permit him to continue. I have considered this carefully and I am satisfied that it would be an affront to the court to permit the claim and counterclaim to continue when, in my judgment, the purpose of Mr Jarvis in speaking to Mr. O'Neill was in effect to jeopardise the fairness of the trial because it was to seek, as he put it himself in re-examination, to clarify and change the evidence that he had given the day before. That was, in my judgment, an attempt to strengthen his and the claimant's position to the detriment and prejudice of the defendant."
Lord Justice Leggatt :
Lady Justice Nicola Davies :