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England and Wales Court of Appeal (Criminal Division) Decisions |
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You are here: BAILII >> Databases >> England and Wales Court of Appeal (Criminal Division) Decisions >> Hounsham & Ors, R v [2005] EWCA Crim 1366 (26 May 2005) URL: http://www.bailii.org/ew/cases/EWCA/Crim/2005/1366.html Cite as: [2005] Crim LR 991, [2005] EWCA Crim 1366 |
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COURT OF APPEAL (CRIMINAL DIVISION)
Strand, London, WC2A 2LL |
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B e f o r e :
MR JUSTICE CURTIS
and
MR JUSTICE POOLE
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Hounsham & others |
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Smith Bernal Wordwave, 190 Fleet Street
London EC4A 2AG
Tel No: 020 7421 4040, Fax No: 020 7831 8838
Official Shorthand Writers to the Court)
Mr Richard Germain of counsel for Robin Edward Hounsham
Mr Lee Karu of counsel for Richard Mayes
Mr Russell Pyne of counsel for Michael George Blake
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Crown Copyright ©
Lord Justice Gage:
The Background
i) Hounsham, Mayes and Baker acted in various combinations to acquire prestige cars with a high mileage which were being sold cheaply. The cars were then "clocked"; that is the mileage shown on the odometer was substantially reduced.
ii) The prestige cars were registered and a MOT carried out noting the reduced mileage.
iii) Ordinary cars of low value were also acquired and "clocked" in preparation for the staged collisions.
iv) False invoices were created to show inflated purchase prices which could later be sent to the insurance companies to support large claims.
v) Drivers, "stooges", were then "sold" one of the ordinary vehicles and a day arranged for an "accident" to take place.
vi) The staged collisions took place in dark and remote places. The accidents were so arranged that both vehicles were write-offs. A local salvage company was instructed to recover the vehicles.
vii) The "stooges" immediately admitted liability and submitted third-party claims to their insurance companies.
By this method insurance companies were deceived into paying out third-party claims for the total loss, at an inflated value, of the prestige cars, and the costs of car hire, in addition to the write-off value of the "stooges" own insured vehicle. In some cases false claims for personal injuries were also included.
The grounds of appeal
The background to the first two grounds of appeal
"As we are at quite a late stage in the investigation we have not got much time to carry out all the enquiries.
Therefore, if you would like us to add this "accident" to our operation, I would ask that your company provide us with the following as a matter of urgency, CONFIRM that you do not wish us to pursue the matter any further.
1. The original claim file and ALL associated papers.
2. A Section 9 witness statement which produces each page of the file and explains fully each page and a procedure that was followed for the claim. A total cost to your company. Exhibit labels signed for each page. (help available from us if needed.) The fact that your company paid out the claim and therefore believed it to be "real", and the fact that if the claim were bogus that your company had been deceived and had it known, would never have paid out.
3. A contact point for immediate attention to any further enquiries.
4. Confirmation whether your company is willing to assist in the financing of our "arrest" phase of the operation. Direct lines, RSA, Norwich Union and Provident have done so."
This letter is reasonably representative of letters addressed to the other insurance companies. In response to similar letters dated 26 June 2002, Direct Line Insurance plc "…unconditionally provided the sum of £1,500 to assist with investigation costs"; the Royal Sun Alliance Insurance plc provided £2,000; and the Norwich Union Insurance Limited £1,000. Three other insurance companies, of whom the Pearl Insurance was one, declined to make any contribution; and a fourth was not approached.
Grounds 1(a) and (b)
"Your Lordships are now invited to extend the concept of abuse of process a stage further. In the present case there is no suggestion that the appellant cannot have a fair trial, nor could it be suggested that it would have been unfair to try him if he had been returned to this country through extradition procedures. If the court is to have the power to interfere with the prosecution in the present circumstances it must be because the judiciary accept a responsibility for the maintenance of the rule of law that embraces a willingness to oversee executive action and to refuse to countenance behaviour that threatens either basic human rights or the rule of law.
My Lords, I have no doubt that the judiciary should accept this responsibility in the field of criminal law. The great growth of administrative law during the latter half of this century has occurred because of the recognition by the judiciary and Parliament alike that it is the function of the High Court to ensure that executive action is exercised responsibly and as Parliament intended. So also should it be in the field of criminal law and if it comes to the attention of the court that there has been a serious abuse of power it should, in my view, express its disapproval by refusing to act upon it."
"Furthermore, although abuse of process, unlike jurisdiction, is a matter calling for the exercise of discretion, it seems to us that Bennett-type abuse, where it would be offensive to justice and propriety to try the defendant at all, is different both from the type of abuse which renders a fair trial impossible and from all other cases where an exercise of judicial discretion is called for. It arises not from the relationship between the prosecution and the defendant, but from the relationship between the prosecution and the Court. It arises from the Court's need to exercise control over executive involvement in the whole prosecution process, not limited to the trial itself."
Ground 1(a) the funding issue
"I have so far received positive replies from RSA and Direct Line to the sum of £1000 each and have yet to speak to others."
On the same date the equivalent letter to Direct Line Insurance included the following sentence:
"I would therefore ask whether your company would consider providing funding to the sum of one thousand pounds."
Conclusions on this ground
Ground 1 (b) disclosure
Ground 2
Conclusion