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You are here: BAILII >> Databases >> England and Wales High Court (Chancery Division) Decisions >> Axnoller Events Ltd v Brake & Anor [2021] EWHC 949 (Ch) (19 April 2021) URL: http://www.bailii.org/ew/cases/EWHC/Ch/2021/949.html Cite as: [2021] EWHC 949 (Ch) |
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BUSINESS AND PROPERTY COURTS IN BRISTOL
PROPERTY TRUSTS AND PROBATE LIST (ChD)
2 Redcliff Street, Bristol, BS1 6GR |
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B e f o r e :
(sitting as a Judge of the High Court)
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AXNOLLER EVENTS LIMITED |
Claimant |
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and |
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(1) NIHAL MOHAMMED KAMAL BRAKE (2) ANDREW YOUNG BRAKE |
Defendants |
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AND BETWEEN: |
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(1) NIHAL MOHAMMED KAMAL BRAKE (2) ANDREW YOUNG BRAKE (3) TOM CONYERS D'ARCY |
Claimants |
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and |
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THE CHEDINGTON COURT ESTATE LIMITED |
Defendant |
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AND BETWEEN: |
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(1) MRS NIHAL MOHAMMED KAMAL BRAKE (2) MR ANDREW YOUNG BRAKE |
Claimants |
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and |
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(1) DR GEOFFREY WILLIAM GUY (2) THE CHEDINGTON COURT ESTATE LIMITED (3) AXNOLLER EVENTS LIMITED |
Defendants |
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MRS NIHAL BRAKE on behalf of herself and Mr Andrew Brake in Claim No E00YE350, and herself, Mr Andrew Brake and Mr Tom D'Arcy in Claim No F00YE085
ANDREW SUTCLIFFE QC and WILLIAM DAY (instructed by Stewarts LLP) for the Defendants in Claim No BL-2019-000028 and the Defendant in Claim No F00YE085,
and EDWIN JOHNSON QC and NIRAJ MODHA (instructed by Stewarts LLP) for the Claimant in Claim No E00YE350
Hearing date: 13 April 2021
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Crown Copyright ©
Covid-19 Protocol: This judgment was handed down by the judge remotely by circulation to the parties' representatives by email and release to BAILII on the date shown at 6 pm.
HHJ Paul Matthews :
Introduction
"This morning, we have received confirmation that counsel who have been instructed on behalf of our clients (referred to for ease as 'the Brakes') have found it necessary to withdraw from these matters. We do not intend to waive privilege in respect of any communication or advice which would otherwise be privileged. We inform you that:
1. Ms Brown, having consulted with the Bar Council and senior colleagues, has concluded that it is her duty to withdraw. This is as a result of the Judge's conduct of the trial and the contents of the Judgment, [2021] EWHC 671 (Ch) ('the Judgment'), which have made it impossible for Ms Brown to appear before the Judge again.
2. Mr Davies, QC, having considered his position with the benefit of advice from the Bar Council and senior colleagues, has concluded that there is a real possibility that he would be unable to fulfil his overriding duty of independence to the court, if he were to continue to represent the Brakes. Accordingly, he has withdrawn as counsel for the Brakes in relation to those matters for which he is instructed. Mr Davies, QC, having reviewed the Judgment in detail, in light of the proceedings at pre-trial hearings and at the trial, has concluded that the Brakes (in particular, Mrs Brake) are unlikely to receive a fair trial in the ongoing proceedings if presided over by the Judge. This includes the proceedings [the Eviction Proceedings], in which Mr Davies, QC was instructed and in relation to which he remains of the view that the Brakes' case has strong legal merits.
In conveying the position to us counsel have indicated the usual reasons for withdrawal such as personal conflict or funding do not apply."
Permission to appeal
1. My decision that the claimants "had no reasonable expectation of privacy in relation to any of the emails on the enquiries account was wrong in law and/or untenable on the facts". Reliance was placed on the 5511 emails which the defendants agreed should be destroyed. Essentially, my decision was against the weight of the evidence, and also started in the wrong place. My approach to article 8 of the European Convention on Human Rights was wrong and my reliance on Simpkin was also misplaced. I treated the defendants' ownership of the domain and email account as a decisive factor against the claimants.
2. I adopted an approach to the determination of whether the claimants had a reasonable expectation of privacy on a basis that was wrong in principle and on the facts. I should have approached the question of reasonable expectation of privacy by reference to the categories of emails in the agreed list of issues. All emails which were not AEL business emails were personal emails in which the claimants had a reasonable expectation of privacy. My decision on reasonable expectation of privacy was internally inconsistent and illogical, and failed to take into account relevant evidence.
3. Similarly, my conclusions that the claimants' personal/private emails on the enquiries account lacked the necessary quality of confidence and/or that the defendants owed no duty of confidence in relation to them were wrong.
4. My conclusions on the access that the defendants had, and permitted others to have, to the claimants' emails in the enquiries account and my conclusion as to the appropriate amount of damages were unwarranted and wrong.
"All issues in this claim other than the Iniquity Defence be listed for trial ("the Non-Iniquity Trial") before HHJ Paul Matthews on the first available date after 4 October 2020 …".
The iniquity defence obviously was to be dealt with at a second hearing if necessary, but the questions of misuse and quantum of damages were not part of that.
Costs
The incidence of costs
The basis of assessment of costs
Further interim payment?
Costs reserved by Mr Jarvis QC
"27. The costs of the LPP Application and the Documents Application are reserved to the judge hearing the trial of the Documents Claim."
Stay on payment of costs
"Unless –
(a) the appeal court or the lower court orders otherwise; …
an appeal shall not operate as a stay of any order or decision of the lower court".
"20. Before it could properly grant a stay, the court needs to have a full understanding of the true state of the company's affairs. Simple assertion, particularly if it is scarcely consistent with previous assertions, is not enough. …
[ … ]
22. By CPR rule 52.7 [now 52.16], unless the appeal court or the lower court orders otherwise, an appeal does not operate as a stay of execution of the orders of the lower court. It follows that the court has a discretion whether or not to grant a stay. Whether the court should exercise its discretion to grant a stay will depend upon all the circumstances of the case, but the essential question is whether there is a risk of injustice to one or other or both parties if it grants or refuses a stay. In particular, if a stay is refused what are the risks of the appeal being stifled? If a stay is granted and the appeal fails, what are the risks that the respondent will be unable to enforce the judgment? On the other hand, if a stay is refused and the appeal succeeds, and the judgment is enforced in the meantime, what are the risks of the appellant being able to recover any monies paid from the respondent?"
"14. No evidence has been served from him or on his behalf to support the assertion that the effect of such an order would be to stifle his appeal. I have no evidence before me concerning his level of earnings since 2015; or concerning any assets which he may or may not hold; or of how he has funded the litigation. I bear in mind that a mere assertion that such an order would stifle an appeal is insufficient. The Claimant must (per Goldtrail) establish his position on the balance of probabilities. Mr Strelitz is inviting me to infer from the wider circumstances of the case and the exiguous evidence at trial, that the Claimant is impoverished to the extent that he would be unable to pursue his appeal if required to fund an interim payment. I do not find that such an inference can properly be drawn in the evidential vacuum in which this application is made. I also note Mr Samuel's observation that Mr Strelitz' submissions do not positively assert that the effect of a payment on account of costs will frustrate an appeal; only that the 'Claimant's modest means' 'would likely mean that an appeal cannot be pursued'. Nor is there evidence that, in the event of an appeal failing, the Claimant would be in a position to discharge his liability in costs to the successful Defendant (Christopher Clarke LJ's second question); nor evidence from the Claimant that in the event of an appeal succeeding there is a concern that the Defendant would not be able to repay costs paid on account (Christopher Clarke LJ's third question)."
(I mention in passing that the reference to "Christopher Clarke LJ" appears to be a slip, as the 'Clarke LJ' who sat in Hammond Suddard was Sir Anthony Clarke, later Master of the Rolls and later still Lord Clarke of Stone-cum-Ebony, rather than Sir Christopher Clarke, who was appointed as a judge only in 2005.)
"10. On the question as to whether there might be a stifling of the appeal, again a further paragraph of Agrichem is material. That is paragraph 18. All I need to quote from that paragraph is that the court made it clear that where somebody seeks to stay orders what they need to do is:
'… produce cogent evidence that there is a real risk of injustice if enforcement is allowed to take place pending appeal'.
The court was, of course, recognising in that context, which should be stressed, the principle that it is not just a question whether the actual party to the appeal can raise the money. The question is whether money can be raised from its directors, shareholders, other backers or interested persons. This was made clear, in the context of a security for costs application, by Peter Gibson LJ in Keary Developments v Tarmac Construction."
"15. There is no doubt - indeed it is agreed - that, if the proposed condition is otherwise appropriate, the objection that it would stifle the continuation of the appeal represents a contention which needs to be established by the appellant and indeed, although it is hypothetical, to be established on the balance of probabilities: for the respondent to the appeal can hardly be expected to establish matters relating to the reality of the appellant's financial situation of which he probably knows little."
(See also at [38], where Lord Clarke made the same point.)
Potential contempt proceedings
"If the court considers that a contempt of court (including a contempt in the face of the court) may have been committed, the court on its own initiative shall consider whether to proceed against the defendant in contempt proceedings."
"29. CPR 81.6 imports a novel requirement for the Court to consider whether to proceed in contempt if it considers that a contempt may have been committed. The Court is to do so 'of its own volition', although where it does so '… any other party in the proceedings may be required by the court to give such assistance to the court as is proportionate and reasonable'. The notes to CPR 81.6(1) explain that the provision is intended to restate the power of the Court to commit of its own volition, noting that contempt in the face of the Court provides the clearest example of when this is likely. CPR 81 makes no change to the Court's substantive powers, and it appears that the procedural aspects of CPR 81.6 are primarily intended to avoid criticisms of summary disposal of contempt proceedings." [Italics in original.]
"32. This suggests that the Court should commence contempt proceedings of its own volition only in circumstances where the relevant party to the litigation decides not to bring an application (implying that it would have been open to that party to do so) and where the Attorney General has not intervened in the public interest (implying that it would have been open to the Attorney General to do so). In the hierarchy of applicants, the Court is least well placed to commence contempt proceedings, and this should inform its approach to CPR 81.6."
"I am not going to give the directions sought. I do think that it is premature to consider this matter. I regret the fact that it has been brought forward to today when we have so many other more pressing matters to deal with. In saying that, I do not mean to suggest that contempts of court are not subjects worthy of consideration, or that the new procedure in Part 81 should not be utilised to the full where it is appropriate to do so. In particular, I am not making any statement about the position in this case as to whether or not a contempt may or may not have been committed. I will only observe, as I think I did in the argument, that I understood that I was not making any findings in relation to any suggestion that particular acts of contempt had been committed. It may well be that it is a subject which ought to be considered in the future. I say nothing about that.
I do, however, say that it is clear to me from the discussion in the very recent decision of Ms Pat Treacy, sitting as a deputy judge of this division in Isbilen v Turk, that one ought to ascertain first whether the persons who have standing to raise the question of contempt, that is in this case Patley Wood Farm LLP and Mrs Brehme, are prepared to raise it with the court, and failing that, whether the Attorney General is prepared to do so, and then come to court only if neither of those two is prepared to act, putting that at the forefront by saying that this is the last possibility, and here is the rule that allows the court to do it of its own motion. But that is not the way it has been approached today. I think that it is premature, but it does not follow that it should not be raised in the future. However, I think it should be raised properly and at an appropriate time."
Adjournment of the two further trials
Recusal application in relation to the possession claim and the eviction claim
"The question is whether the fair-minded and informed observer, having considered the facts, would conclude that there was a real possibility that the tribunal was biased."
"25. [ … ] By contrast, a real danger of bias might well be thought to arise … if, in a case where the credibility of any individual were an issue to be decided by the judge, he had in a previous case rejected the evidence of that person in such outspoken terms as to throw doubt on his ability to approach such person's evidence with an open mind on any later occasion … The mere fact that a judge, earlier in the same case or in a previous case, had commented adversely on a party or witness, or found the evidence of a party or witness to be unreliable, would not without more found a sustainable objection. …"
"70. In this connection, it seems to me that the critical consideration is that what the first judge does he does as part and parcel of his judicial assessment of the litigation before him: he is not 'pre-judging' by reference to extraneous matters or predilections or preferences. He is not even bringing to this litigation matters from another case … He is judging the matter before him, as he is required by his office to do. If he does so fairly and judicially, I do not see that the fair-minded and informed observer would consider that there was any possibility of bias. … The judge has been at all times bringing his objective judgment to bear on the material in this case, and he will continue to do so. Any other judge would have to do so, on the same material, which would necessarily include this judge's own judgments."
"2. … It is obviously convenient for a single judge rather than different judges to deal with a complex case but the question can arise whether there comes a point where findings made by a judge pre-trial disqualify a judge from continuing with a case or findings made at trial disqualify a judge from hearing consequential matters."
"29. The mere fact that a judge has decided applications or issues in the past adversely to a litigant is not generally a reason for that judge to recuse himself at further hearings … The fair-minded and informed observer does not assume that because a judge has taken an adverse view of a previous application or applications, that he or she will have pre-judged, or will not deal fairly with, all future applications by the same litigant. …
30. The position might well be different if in the past the judge has expressed a final, concluded view on the same issue as arises in the application. …"
"39. I cannot accept this argument. Firstly, there is often material in the bundles before a judge which is not strictly relevant to the issue which has to be decided. If the material is irrelevant the judge will not rely on it. If he is alerted to the fact that it is irrelevant he will be particularly careful to put it out of his mind. In this connection professional judges are not the same as lay juries, whose decision-making may be contaminated if they are exposed to irrelevant or inadmissible material."
"every application must be decided on the facts and circumstances of the individual case",
and
"if in any case there is real ground for doubt, that doubt should be resolved in favour of recusal."
"26. … If, appropriate disclosure having been made by the judge, a party raises no objection to the judge hearing or continuing to hear a case, that party cannot thereafter complain of the matter disclosed as giving rise to a real danger of bias. It would be unjust to the other party and undermine both the reality and the appearance of justice to allow him to do so. …"
"274. Even if I had found that there were grounds of apparent bias on the face of Judgment No.3, I would not have recused myself. This is because of the fact that the Post Office waited until almost two weeks after it had received Judgment No.3 before it did anything in respect of making an application to recuse.
[ … ]
284. I consider that it was incumbent upon the Post Office to have issued its application far more quickly than it did, given it had the draft Judgment No.3 from 8 March 2019, and given the Horizon Issues trial started on 11 March 2019. Rather than acting quickly and promptly, the Post Office delayed, and as explained above, acted somewhat curiously. …
285. I have found that there is no apparent bias in any event. However, even were I to have concluded that point to the contrary, and found that there was sufficient to justify the Post Office's application for recusal, I consider the delay, and the continued conducting of the Horizon Issues trial, including both the cross-examination of all of the claimants' witnesses of fact, and the calling of almost all of the Post Office's own witnesses of fact, to constitute an unequivocal waiver of any right the Post Office might have had to ask me to abandon the Horizon Issues trial and recuse myself from further involvement as the Managing Judge."
"26. … In view of comments that have been made (on both sides) in closing submissions, I should make clear that I have not sought, in assessing Mrs Brake's evidence in this trial, to apply any impression gained from seeing and hearing Mrs Brake in that earlier trial, which was a different case, and when in any event conditions were sub-optimal. I am not sure whether it was being urged on me that I should have regard to my views of Mrs Brake's evidence in the earlier trial, but I take this opportunity to state that I have reached my views of Mrs Brake's evidence in the present case solely on the basis of the evidence that she gave in this case. In my judgment, in all the circumstances, it would not be right to do otherwise. …".
Adjournment of one or other of the possession claim and the eviction claim
Other matters