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England and Wales High Court (Queen's Bench Division) Decisions |
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You are here: BAILII >> Databases >> England and Wales High Court (Queen's Bench Division) Decisions >> Robins v Kordowski & Anor [2011] EWHC 1912 (QB) (22 July 2011) URL: http://www.bailii.org/ew/cases/EWHC/QB/2011/1912.html Cite as: [2011] EWHC 1912 (QB) |
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QUEEN'S BENCH DIVISION
Strand, London, WC2A 2LL |
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B e f o r e :
____________________
(1) STEPHEN ROBINS (2) GABBITAS ROBINS (a firm) |
Claimants |
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- and - |
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(1) RICK KORDOWSKI (2) TIM SMEE |
Defendants |
____________________
Mr Jonathan Crystal (Pro Bono) for the First Defendant
Hearing dates: 14 July 2011
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Crown Copyright ©
Mr Justice Tugendhat :
"This man is the most dishonourable unscrupulous "professional" I have ever met. He consistently lied and bullied his client into pursuing a ludicrous, fictitious claim racking up extortionate costs in the process. There was never any attempt to provide proper advice. He acted in his own best interests – totally disregarding those of his client…".
"It is my honest opinion that this man is the most dishonourable, unscrupulous 'professional' I have ever met….
5 days before the case was due to be tried, Stephen Robins called a meeting at which he offered to accept a lower figure.
He went on to say that if the case went to court and I won, his client would not have a penny with which to pay me anyway.
The very next day his client verbally offered me what I was owed in settlement of my claim plus part of my costs. I accepted.
The defendant then spoke to Stephen Robins and came back to me to say 'all offers are withdrawn'.
We met in court two days later (incurring further costs each) and I then accepted an out of court settlement.
Stephen Robins clearly lied to me about the clients ability to pay. It seem that Robins then talked his client into withdrawing his offer.
The net result was costs for both parties (and of course more fees for Stephen Robins). He acted in his own best interests – totally disregarding those of his own client".
"8 Summary disposal of claim.
(1) In defamation proceedings the court may dispose summarily of the plaintiff's claim in accordance with the following provisions.(2) The court may dismiss the plaintiff's claim if it appears to the court that it has no realistic prospect of success and there is no reason why it should be tried.(3) The court may give judgment for the plaintiff and grant him summary relief (see section 9) if it appears to the court that there is no defence to the claim which has a realistic prospect of success, and that there is no other reason why the claim should be tried.Unless the plaintiff asks for summary relief, the court shall not act under this subsection unless it is satisfied that summary relief will adequately compensate him for the wrong he has suffered.(4) In considering whether a claim should be tried the court shall have regard to—(a) whether all the persons who are or might be defendants in respect of the publication complained of are before the court;(b) whether summary disposal of the claim against another defendant would be inappropriate;(c) the extent to which there is a conflict of evidence;(d) the seriousness of the alleged wrong (as regards the content of the statement and the extent of publication); and(e) whether it is justifiable in the circumstances to proceed to a full trial.(5) Proceedings under this section shall be heard and determined without a jury.
9 Meaning of summary relief.
(1) For the purposes of section 8 (summary disposal of claim) "summary relief" means such of the following as may be appropriate—(a) a declaration that the statement was false and defamatory of the plaintiff;(b) an order that the defendant publish or cause to be published a suitable correction and apology;(c) damages not exceeding £10,000 or such other amount as may be prescribed by order of the Lord Chancellor;(d) an order restraining the defendant from publishing or further publishing the matter complained of.(2) The content of any correction and apology, and the time, manner, form and place of publication, shall be for the parties to agree.
If they cannot agree on the content, the court may direct the defendant to publish or cause to be published a summary of the court's judgment agreed by the parties or settled by the court in accordance with rules of court.
If they cannot agree on the time, manner, form or place of publication, the court may direct the defendant to take such reasonable and practicable steps as the court considers appropriate.
(3) Any order under subsection (1)(c) shall be made by statutory instrument which shall be subject to annulment in pursuance of a resolution of either House of Parliament".
"(1) Subject to paragraph (2), a claimant may obtain a default judgment by filing a request in the relevant practice form where the claim is for –
(a) a specified amount of money;(b) an amount of money to be decided by the court;(c) delivery of goods where the claim form gives the defendant the alternative of paying their value; or(d) any combination of these remedies.
(2) The claimant must make an application in accordance with Part 23 if he wishes to obtain a default judgment –
(a) on a claim which consists of or includes a claim for any other remedy; ….
(3) Where a claimant –
(a) claims any other remedy in his claim form in addition to those specified in paragraph (1); but(b) abandons that claim in his request for judgment,he may still obtain a default judgment by filing a request under paragraph (1)".
"I now accept that the above imputations and implications thereof were unjustified and I apologise to the First and Second Claimants for having made them as author of them and I withdraw unreservedly all such imputations upon the First and Second Claimants …."
MEANING
"(1) In respect of the First Claimant that:
(i) he had perpetrated a fraud on Mr Bonwick… in respect of the litigation between [Mr Smee] and Mr Bonwick, and had acted fraudulently and dishonestly in litigation.
ii) he had lied to and bullied Mr Bonwick against his voluntary will into pursuing his counterclaim in the proceedings.
iii) He had deliberately and fraudulently omitted to advise Mr Bonwick and instead acted only in his own best interests at the expense of his own client.
iv) He had acted corruptly and dishonestly in the litigation and is to be shunned and avoided by any potential future client or any existing clients.
(2) In respect of the Second Claimant that;
i) It is connected to or complicit with and otherwise involved with the fraudulent and dishonest instances pleaded aforesaid in relation to the First Claimant
ii) By virtue of the dishonesty of fraud and corruption of one of its founding partners in the litigation between [Mr Smee] and Mr Bonwick, it should be shunned and avoided by any potential future client or any existing clients ".
"The said words meant and were understood to mean:
In relation to [the words published on 4 March]
(i) that the Claimants had pursued a hopeless claim on behalf of their client thereby incurring unnecessary costs for such client and
(ii) that the Claimants put their own interests ahead of their client
in relation to the words [published on 6 March 2011]
(i) That the Claimants had advanced a spurious counterclaim on behalf of a client which had no reasonable prospect of success.
(ii) That the Claimants had demanded a settlement figure for their client when he was indebted to [Mr Smee] and falsely informed [Mr Smee] that his claim was worthless as their client could not pay anyway.
(iii) That the Claimants rejected a settlement agreement between their client and [Mr Smee] causing the parties to incur unnecessary costs".
"(i) [Mr Smee] commenced a debt action against Simon Bonwick. There was no reasonable defence to such claim.
(ii) Mr Bonwick retained the Claimants in respect of such claim and a groundless counterclaim was served claiming monies substantially in excess of the claim. It is to be inferred that this was done to deter [Mr Smee] from proceeding with his debt claim.
(iii) Five days before the listing of the trial of [Mr Smee]'s claim the First Claimant attended a meeting at which he offered to accept the claim on the basis of a payment by [Mr Smee] to Mr Bonwick. [Mr Robins] falsely claimed that if the case went to trial and [Mr Smee] won, Mr Bonwick would not have a penny with which to pay [Mr Smee].
(iv) The following day Mr Bonwick contacted [Mr Smee] and offered to repay the debt and part of [Mr Smee]'s costs. This was accepted by [Mr Smee]. [Mr Smee] then spoke with the First Claimant who informed him that: "All offers are withdrawn". It will be contended that no solicitor acting reasonably in respect of the debt claim by [Mr Smee] against Mr Bonwick would have terminated negotiations in this way or withdrawn offers made by their client which had been accepted.
(v) The parties attended Court two days later when a compromise was reached involving Mr Bonwich paying [Mr Smee] £15,000. The costs incurred by Mr Bonwich and [Mr Smee] on this occasion were unnecessary as the Claimants knew or would have appreciated. By Mr Bonwick entering into an agreement to pay [Mr Smee], [Mr Robins]'s statement that Mr Bonwick would not have a penny with which to pay [Mr Smee] was demonstrably false.
(vi) A prudent and competent solicitor would have advised Mr Bonwick to negotiate terms of settlement prior to incurring substantial legal fees which would cause a creditor in turn to incur unnecessary legal fees. [Mr Kordowski] reserves the right to plead further hereto after disclosure by the Claimants of their file and accounting records relating to the claim."
"the words complained of are honest comment on a matter of public interest, namely that the Claimants had unscrupulously pursued hopeless litigation incurring unnecessary costs and in the course of which lied to [Mr Smee] …"
"16. … First, the comment must be on a matter of public interest. Public interest is not to be confined within narrow limits today: see Lord Denning in London Artists Ltd v Littler [1969] 2 QB 375, 391.
17. Second, the comment must be recognisable as comment, as distinct from an imputation of fact. If the imputation is one of fact, a ground of defence must be sought elsewhere, for example, justification or privilege. Much learning has grown up around the distinction between fact and comment. For present purposes it is sufficient to note that a statement may be one or the other, depending on the context. Ferguson J gave a simple example in the New South Wales case of Myerson v. Smith's Weekly (1923) 24 SR (NSW) 20, 26:
'To say that a man's conduct was dishonourable is not comment, it is a statement of fact. To say that he did certain specific things and that his conduct was dishonourable is a statement of fact coupled with a comment.'
18. Third, the comment must be based on facts which are true or protected by privilege: see, for instance, London Artists Ltd v Littler [1969] 2 QB 375, 395. If the facts on which the comment purports to be founded are not proved to be true or published on a privilege occasion, the defence of fair comment is not available.
19. [Fourth, the comment must explicitly or implicitly indicate, at least in general terms, the facts on which it is based].
20. Finally, the comment must be one which could have been made by an honest person, however prejudiced he might be, and however exaggerated or obstinate his views: see Lord Porter in Turner v Metro-Goldwyn-Mayer Pictures Ltd [1950] 1 All ER 449, 461, commenting on an observation of Lord Esher MR in Merivale v Carson (1888) 20 QBD 275, 281. It must be germane to the subject-matter criticised. Dislike of an artist's style would not justify an attack upon his morals or manners. But a critic need not be mealy-mouthed in denouncing what he disagrees with. He is entitled to dip his pen in gall for the purposes of legitimate criticism: see Jordan CJ in Gardiner v Fairfax (1942) 42 SR (NSW) 171, 174.
21. These are the outer limits of the defence. The burden of establishing that a comment falls within these limits, and hence within the scope of the defence, lies upon the defendant who wishes to rely upon the defence."
THE EVIDENCE RELIED ON BY MR KORDOWSKI
"(1) I never found Mr Robins to be "dishonourable" or "unscrupulous". I found Mr Robins and his firm at all times to act properly and professionally.
(2) It is untrue that my claim was spurious and had no possible chance of being upheld in Court. My Counsel settled all the pleadings in relation to the dispute.
(3) The meeting to which Mr Smee refers was held "without prejudice" between the parties and their legal representatives.
(4) Mr Robins and my Counsel advised me properly in relation to all offers and negotiations during the dispute and for Mr Smee to say that Mr Robins "talked [me] into withdrawing" any offers is untrue.
(5) Mr Robins never bullied me nor at any time did he mislead about my ability to make any settlements.
(6) Mr Smee makes a serious allegation that Mr Robins lied to him about my ability to pay sums of money. I now state that the statement made by Mr Smee that Mr Robins lied about my ability to pay is untrue."
"We had all but agreed settlement when Simon [Bonwick] suddenly announced (having spoken to you) that he was "withdrawing all offers". He thereby committed us both to the further expense (approx £7,000 each) of proceeding to court. Immediately before the hearing was due to commence Simon, of course, agreed to pay me £15,000. I do not understand how you can tell me in the meeting that your client had no money but he was then able to offer to pay me £10,000 immediately with a further £5,000 in stage payments. I am shocked and saddened that such untruths could be told to me at such an advanced stage in proceedings. Apart from being dishonest, this is, at best unethical and immoral". (emphasis added)
"Stephen Robins clearly lied to me about the clients ability to pay
This is witnessed in the letter dated 24th January 2011 from Chebsey and Co to Gabbitas Robins".
"Indeed we are driven to hypothesise that rather than taking your client's instructions, and rendering appropriate advice about cost and risk, you are driving the matter to trial for your own benefit. We can only conclude that you must be very sure that the counter-claim will succeed. That is not our view, nor apparently that of your client.
We are disappointed to note that you client's offer of settlement of £17,000 inclusive of costs has been withdrawn, we assume, following your firm becoming aware of the progress of this morning's negotiations.
We are aware that your client claims not to have funds or assets to satisfy any judgment that our client may obtain against him. We note your view that your client will succeed in his counter-claim and do not agree. …"
"It seems that Robins then talked his client into withdrawing his offer.
This is as confirmed to me by Simon Bonwick on the telephone and as witnessed in the letter dated 24th January from my solicitors to Gabbitas Robins. ..
The net result was increased costs for both parties (and of course more fees for Stephen Robins).
This is clearly true…
He acted in his own best interest – totally disregarding those of his own client.
This is true. In the end the costs of his client were greatly increased…"
"We went to mediation and eventually the case was to be heard in Slough Court. Prior to that hearing Mr Robins called a meeting at which he proposed that I pay his client £25,000 to settle the matter. I declined. At that meeting Mr Robins spoke and prevented his client from speaking. Mr Robins told me that if I were to win in court the judgment would be "unsatisfied", indicating that his client would not be able to pay me, as he had no money. He further stated that "they had taken appropriate steps to protect Mr Bonwick's interests".
The very next day Simon Bonwick telephoned me to make a verbal offer to pay me £10,000. After further telephone calls Simon increased his offer to £17,000, which I accepted. Simon then spoke to Mr Robins and I was surprised when he then came back to me to say that all offers were withdrawn".
"It will be contended that no solicitor acting reasonably in respect of the debt claimed by [Mr Smee] against Mr Bonwick would have terminated negotiations in this way or withdrawn offers made by their client which had been accepted".
CONCLUSION ON REAL PROSPECT OF SUCCESS
THE ISSUE OF JURISDICTION.
"The statute does not expressly limit the jurisdiction in this way. In giving its language a purposive construction we do not think it was intended to do so. After all, as the judge said, the claim is not disposed of by the court until both liability and quantum have been decided".
"1.2. The court must seek to give effect to overriding objective when it … (b) interprets any rules …".
SECTION 8(4)
"[Mr Smee] says that five days before the case was to be tried I called a meeting and offered to accept a lower figure from [Mr Smee] in settlement. I did call a meeting where legal representatives and the parties were present, as I was anxious to ascertain whether or not a settlement could be achieved without proceeding to trial. An offer to settle was made in a without prejudice meeting. No settlement was reached at that meeting. [Mr Smee] says that I went on to say that, if the case went to court and he won, my client would not have a penny with which to pay him anyway. I told all parties at the meeting that, if [Mr Smee] won, Mr Bonwick would be unable to satisfy any judgment and would be forced to file for his own bankruptcy. Mr Bonwick and his wife have eight children and live in a rented property. If [Mr Smee] had won at trial and the counterclaim was dismissed, the total liability to Mr Bonwick would have been in the region of £35,000. Mr Bonwick, from the disclosure made to me, could never have satisfied this sum as a judgment. The claim was finally settled for a payment of £10,000 plus two instalments of £2,500; the first instalment was payable on 31 January 2012 and the second instalment was payable on 31 January 2013. Since payment of £10,000, unfortunately, Mr Bonwick's business has failed".
WHAT RELIEF SHOULD BE GRANTED?
"There may be cases however where a Defendant who puts forward a defence of justification will be unable to prove sufficient facts or establish the defence…Nevertheless the Defendant may be able to rely on such acts as he has proved to reduce the damages perhaps, almost to vanishing point".
"In any action for libel or slander the Defendant may give evidence in mitigation of damages that the plaintiff has recovered damages, or has brought actions for damages, for libel or slander in respect of the publication of words to the same effect as the words on which the action is founded, or has received or agreed to received compensation in respect of any such publication".
"whilst its true that no steps to date been taken to enforce the damages award against either applicant, the fact remains that the substantial sums awarded against them have remained enforceable since the decision of the Court of Appeal. In these circumstances the Court finds that the award of damages in the present case was disproportionate to the legitimate aim served".
"The allegations that Mr Robins had lied in the course of the litigation between Mr Bonwick and Mr Smee, and that Mr Robins had acted in any way dishonestly or in breach of his duty to his client Mr Bonwick, are false and defamatory of him and the Claimant firm".
"Until I hear back from the author, I have temporarily suspended the complaint about your firm.
Both the author and I have a moral and social duty to expose wrong doing and I can assure you this will happen if the author can substantiate their claims to me".
"I suggest we take these people on…don't worry, I will prepare the defence and represent us in the High Court and it will not cost a penny in terms of outlay! (I have done it before)".
"from further publishing words meaning that, in the course of representing Mr Bonwick in the litigation brought by Mr Smee, Mr Robins had lied, or had acted in any way dishonestly or in breach of his duty to his client Mr Bonwick, or any similar words defamatory of the Claimants or either of them. "