THE HOT STORY

Dilapidated courts risk UK's legal standing

Financial Times  / The Times  

The dilapidated state of courts in England and Wales is putting the country's position as a global leader in corporate litigation and legal services at risk, according to Sam Townend KC, chairman of the Bar Council. He warned that multinational companies may turn to other countries such as India, Abu Dhabi, and Saudi Arabia if there is not more investment in the court system. Townend highlighted the poor conditions of Southwark crown court, which handles white-collar crime cases, and the recent closures of Sheffield crown court and Blackpool magistrates' court.

LAW

Dame Sue Carr wants to promote 'open justice'

Financial Times / The Daily Telegraph  

The Lady Chief Justice of England and Wales says she is “really interested” in extending filming to a wider range of courts and to more judges as part of her desire to promote “open justice.” In her first press conference since taking up the post last year, Dame Sue Carr said: “I am very interested in extending filming to a wider cohort of judges than is the case currently. I am also really interested in looking at extending filming across more jurisdictions at first instance.” As well as extending filming to more judges, Dame Sue also suggested the Administrative Court, which judicially reviews decisions by other courts or tribunals and hears challenges to decisions by people or bodies such as ministers and local councils. However, she was sceptical about following Scotland's example where full proceedings can be broadcast if participants consent and was concerned about the impact on witnesses and the consequences of screening full trials. “We don't want the witness worrying about any more than they already have to worry about. So it's getting the best evidence from the witness,” she said. Dame Sue also said she was looking to expand the use of virtual courts and tribunals to tackle backlogs although this would be primarily in non-criminal cases. She said she wanted to be as “creative as possible” in how courts operated and used their time.

Solicitors Regulation Authority keen to regulate legal executives

Law Gazette  

The Solicitors Regulation Authority (SRA) is interested in regulating legal executives, aiming to simplify the regulatory landscape and provide consistent levels of protection and information for the public. However, solicitors' representatives are concerned about diluting the solicitor brand and reducing consumer confusion. SRA board chair Anna Bradley acknowledged CILEX's questions about regulating paralegal and student members but did not mention the Axiom Ince compensation bill. The SRA remains interested in regulating CILEX members but further work needs to be done before final decisions can be made. The focus now is on developing and consulting on arrangements to regulate CILEX paralegals and students while delivering consumer benefits and avoiding confusion.

The Law Society claims victory in legal aid fees case

BBC News / Daily Telegraph / The Times / City A.M. / London Evening Standard  

The Law Society has claimed victory in the legal aid fees case against the government. The High Court ruled in favour of the Law Society, stating that the Lord Chancellor's failure to increase criminal solicitors' legal aid fees was irrational and breached his duties. The court also declared that the Lord Chancellor's failure to consider lower fee increases and to undertake any modeling was irrational. Law Society president Nick Emmerson welcomed the ruling and urged the government to rethink the funding to prevent the collapse of the system. The society calls for the implementation of the recommended 15% legal aid rates' rise. The Ministry of Justice stated that while the claimants were successful on specific grounds, most of their arguments were rejected. They will consider the judgment carefully and highlighted their existing reforms to increase spending on criminal legal aid.

Government commits to financial services redress schemes

The Times  

Access to financial services redress schemes will remain a key consumer right, according to the government. Baroness Vere of Norbiton, parliamentary secretary to the Treasury, stressed the importance of consumers having appropriate routes to seek redress without going through the court system. Experts have expressed concern that a £230m compensation deal for Woodford investors could set a dangerous precedent by removing access to redress schemes. A High Court judge is expected to issue a judgment on the compensation scheme this month. The scheme, orchestrated by the Financial Conduct Authority, would prevent investors from suing Link, the administrator of the Woodford Equity Income Fund, or complaining to the ombudsman for a potentially larger compensation payout. Lord McNicol of West Kilbride welcomed the government's commitment to maintaining the protection conferred by parliament.

SRA probes Post Office lawyers over compensation letters

Law Gazette  

The Solicitors Regulation Authority (SRA) is investigating the conduct of Post Office lawyers over compensation offer letters sent to victims of the Horizon scandal. The SRA is looking into the tone and nature of correspondence with sub-postmasters after complaints raised by the independent board overseeing compensation payments. Victims have expressed confusion, intimidation, and hurt due to the Post Office's aggressive approach to settling claims. The SRA has sought clarification from the Post Office on the appropriate labeling of compensation letters. The regulator intends to wait until the end of the Post Office Inquiry before deciding on any proceedings.

Stronger sanctions urged to deal with council corruption

The Guardian  

Professional body Lawyers in Local Government has raised concerns over oversight and transparency in local government after an investigation by The Guardian found that corruption investigations have been carried out at more than a tenth of local authorities over the last decade. Rachel McKoy, president of Lawyers in Local Government, said the body has warned against the "complete lack of sanctions" to tackle wrongdoing. "The Government says the sanction is at the ballot box," she said, "but that doesn't help if there's rotten pervasive behaviours." While monitoring officers are responsible for legal governance, she said, they have "no real proper protections," and can be left powerless "even when dealing with proven cases of rule breaking - including serious, harmful and criminal actions by councillors or staff."

FAMILY LAW

Family law specialists support decision to ditch mandatory mediation

The Times  

Family law specialists have expressed support for the government's decision to abandon mandatory mediation for divorcing couples. The Supreme Court recently rejected a Russian couple's attempt to have their financial dispute heard in England, highlighting the ongoing battle over divorce settlements. The Ministry of Justice had initially proposed mandatory mediation to reduce the number of cases going to family courts, but concerns were raised about the protection of domestic abuse victims. The government has now launched an early legal advice program and is working with the Family Mediation Council to improve training for mediators on domestic abuse. Experts believe that this approach, combined with encouraged mediation, will help resolve disputes and spare children from the long-term harm of courtroom conflict.

LEGAL TECH

Voluntary code of conduct for AI training using copyrighted material shelved

City AM  

City lawyers have criticised the voluntary code of conduct for AI training using copyrighted material, stating that it was always destined to fail. The UK's Intellectual Property Office (IPO) had convened an industry panel to draft the code, but an agreement could not be reached between AI companies and rights holders. As a result, the responsibility has now fallen back on government officials. Andana Streng, managing associate in Addleshaw Goddard's intellectual property (IP) team, explained that achieving transparency over where training data comes from and how the AI model generates an output requires large amounts of financial investment and human oversight that could render the business models of some companies “unviable.”

COMMERCIAL LAW

Prosecutions lag UK's growing ‘fraud epidemic'

City AM  

The UK government has been urged to do more to crack down on fraud after new data showed the number of high-value criminal cases reaching the courts has stayed flat despite a sharp rise in fraud. UK crown courts heard 226 fraud cases last year compared with 221 in 2022, according to new figures from KPMG's Fraud Barometer. The total value of last year's cases was £993m, down from £1.1bn in 2022. According to the latest figures from the Home Office, fraud now accounts for more than 40% of all crime in England and Wales. “The timely prosecution of economic crime remains a challenge, so in the context of rising fraud rates, it is disappointing to see little change in the number of high-value fraud cases being heard in UK crown courts,” said Roy Waligora, partner and head of UK investigations at KPMG. KPMG's data also showed the government was the biggest victim in last year's fraud cases, losing £593m, while the commercial business and investment sectors suffered hits of £165m and £122m respectively. Susan Hawley, executive director of campaign group Spotlight on Corruption, said fraud prosecutions “are still nowhere near the levels needed to tackle Britain's fraud epidemic.”

Environment Agency launches economic crime unit

Global Investigations Review / Business Green / Gov.uk  

The Environment Agency has introduced a new unit tasked with investigating money laundering and other financial crimes linked to the waste sector. The Economic Crime Unit builds on the work of the agency’s Financial Investigations Team and will be made up of highly skilled staff including accredited financial investigators, accredited financial intelligence officers and financial crime analysts. Alan Lovell, chair of the Environment Agency, said: “Waste crime is a blight on communities and our environment. By undermining legitimate business investment, it costs our economy an estimated £1bn every year – money being taken away from other essential services to deal with the damage caused by waste criminals.” Environment Minister Robbie Moore said: “The establishment of the Economic Crime Unit provides another powerful tool in our fight against waste criminals who undermine legitimate business and blight communities.”

Lloyds close to settling Libor claim

The Times  

Lloyds Banking Group is close to settling a claim brought by the former owner of the Centre Point tower, Ardeshir Naghshineh, who says he would not have taken on loans from HBOS, which Lloyds rescued in 2009, had he known that Libor was being routinely manipulated by the bank and that the rate was therefore compromised. Lloyds reached a last-minute “agreement in principle” with Naghshineh ahead of a civil hearing on Monday. The move means two senior Lloyds bankers will not have to give evidence and accusations of Bank of England involvement in Libor rigging can be put aside. It would have been the first time such allegations against the BoE could have been aired in the High Court.

HSBC begins defence in £240m Disney film tax trial

City AM  

HSBC is set to defend itself against a £240m legal action brought by more than 500 investors over a Disney film tax scheme. The investors claim that HSBC's marketing of film financing schemes called Eclipse Partnerships caused them losses. The tax scheme, marketed by Future Capital Partners, promised tax relief for investing in film productions, but HMRC denied the tax breaks due to the movies not being made or the productions not being promoted. The investors were then presented with large tax bills. The case against HSBC includes allegations of deceit, conspiracy, and breach of obligations under the Financial Services and Markets Act 2000. HSBC denies promoting tax investment products and has instructed Norton Rose Fulbright to defend it in the case.

Revolution Beauty co-founder settles £2.9m accounting scandal

BBC News / The Times / This is Money  

The co-founder of Revolution Beauty, Adam Minto, has agreed to pay £2.9m to settle claims over his involvement in an accounting scandal. The settlement comes after Revolution Beauty accused Minto of breaching his duties, leading to the suspension of the company's shares for 10 months. Minto will pay £483,333 annually for the next six years. Revolution Beauty stated that the settlement was fair and allowed it to move on from the dispute. The company's shares were suspended in September 2022 after auditors at BDO refused to sign off on its accounts. Minto, who resigned as CEO, has not commented on the independent report. The settlement occurs just before Revolution Beauty'sinvestor update.

BoS settles out-of-court in unfair mortgages case

The Sunday Times / The Sunday Times / The Guardian  

Bank of Scotland has reached an out-of-court settlement in a case involving "unfair" mortgages. The case involves a Bank of Scotland product called the shared appreciation mortgage (Sam), which has been accused of ruining lives by leaving some people owing 10 or 12 times the sum they originally borrowed. The settlement is cloaked in secrecy, with the bank and Teacher Stern, the law firm behind the action, only saying they had "agreed a commercial settlement, without any admission of liability".

PROPERTY LAW

Russian state-owned properties in London could be seized

The Daily Telegraph  

The Telegraph reports that Russian state-owned properties in London worth an estimated £200m could be seized due to a legal charge against a plot of land in Kensington. The charge was obtained by the former shareholders of Yukos Oil after the Kremlin failed to comply with a High Court order to pay their legal costs. The shareholders are suing Russia for the illegal expropriation of their investments when Yukos was nationalised without compensation. The new charge on this land leaves Russia vulnerable to more legal action regarding its UK properties. The Telegraph has identified 16 London houses and flats - in Holland Park, South Kensington, Chelsea, Fulham, Highgate and Kensington - owned directly by the Russian Federation with an estimated value of £200m, according to Land Registry records. The Russian Embassy claims that all overseas properties are used for diplomatic purposes and so are immune from being sequestrated by a court. However, the Telegraph has established that in recent years some flats in these houses have been rented out to British and foreign individuals.

EMPLOYMENT LAW

Sexuality irrelevant in workplace, says Law Society member

The Times  

Gordon Lennox, a member of the Law Society of Scotland's governing council, has argued that expecting or encouraging gay and bisexual individuals to “come out” at work is preposterous and should become a thing of the past. Lennox, a director with the Glasgow-based legal firm Macdonald Henderson, insists that people's sexuality is irrelevant in the workplace and employees should not feel pressured to declare their orientation. Outlining his position in the society's journal to mark LGBT+ History Month, Lennox said he supports the society's work to promote greater diversity and inclusion but longs for the day when LGBT and disabled workplace groups are rendered obsolete.He added: “My point is that, whoever you go home to at night, it's nobody's business when you walk through the office door. It should be a non-thing. The whole coming out thing is bizarre. You can't just be yourself because people have a prurient interest in your private life.”

UK foreign nationals denied rights due to Home Office failures

The Independent  

Tens of thousands of UK foreign nationals are being denied their rights to employment, study, and benefits due to the Home Office's failure to provide proper documents. The charity Refugee and Migrant Forum of Essex and London (Ramfel) has estimated that many people are wrongly suspended from work or facing significant detriment while waiting for their visas to be extended. The government claims to have made it clear to employers not to discriminate against people on "3C leave," but the reality is that many are still denied their rights. The charity Ramfel is taking legal action against the government, arguing that changes need to be implemented to protect those on 3C leave. 

Anti-Zionist beliefs are a protected characteristic, tribunal rules

The Daily Telegraph / The Guardian  

A sociology professor at the University of Bristol, Professor David Miller, was discriminated against based on his philosophical belief that Zionism is inherently racist, an employment tribunal has found. Zillur Rahman, the partner at law firm Rahman Lowe who represented Miller, called it a landmark case. “This judgment establishes for the first time ever that anti-Zionist beliefs are protected in the workplace.” The Union of Jewish Students expressed disappointment with the ruling, while Bristol University said it is reviewing the findings.

FIRMS

City law firms track office attendance with swipe card data

The Daily Telegraph  

City law firms, including Hogan Lovells and Taylor Wessing, are monitoring office attendance using swipe card entry data. Hogan Lovells began tracking individual office attendance in October 2021 to assess its hybrid working policy. The firm requires UK staff to spend at least 60% of the working week in the office. Taylor Wessing's leadership teams also receive data on individual office attendance levels. The firm currently requires employees to spend at least three days per week in the office or with clients. Both firms are using the data to understand occupancy trends and prepare for future office moves. However, concerns have been raised about the impact of surveillance on employee mental health and job performance. Elizabeth Rimmer, CEO of LawCare, warns that monitoring staff in this way can create distrust and lead to anxiety and stress.

Fletchers Group acquires Serious Injury Law

Law Gazette  

Fletchers Group has acquired Serious Injury Law (SIL), adding to its growing portfolio. SIL will retain its brand and offices, with integration expected to be completed by 1 May. Caroline Morris will take overall responsibility for the combined serious injury team. Fletchers Group, backed by private equity, has made several acquisitions in recent years. SIL, led by equity partners Tim Walters, Matt Dixon, and Ben Priestley, had net assets of £834,000 and employs 40 people. The acquisition strengthens Fletchers Group's position in the serious personal injury market. Consolidation in the sector is increasing due to market reforms.

Former Dentons partner takes legal action in London

City AM  

The former managing partner of Dentons' Saudi Arabia operations, Amgad Husein, has filed a breach of contract claim against the law firm in London. Husein, who worked at Dentons from 2007 to 2017, focused on major American, European, and Asian banking, industrial, and corporate institutions doing business in Saudi Arabia. The claim was filed in the Business and Property Courts of the High Court. 

CASES

Madagascan President's ex-chief of staff accused of bribery

Reuters  

Madagascan President Andry Rajoelina's ex-chief of staff, Romy Andrianarisoa, is accused of offering to obtain bribes from precious stone miner Gemfields in exchange for help with mining rights. Andrianarisoa, who was a trusted adviser to Rajoelina, allegedly sought substantial payments from Gemfields to assist the company's expansion in Madagascar. The UK's National Crime Agency (NCA) became involved after Gemfields reported the bribery attempt, and an undercover officer posing as a consultant recorded Andrianarisoa and her associate Philippe Tabuteau asking for bribes. The indictment states that they allegedly sought around 270,000 Swiss francs ($310,000) and a 5% stake in a Gemfields company. Andrianarisoa has pleaded not guilty to one count of bribery. Gemfields CEO Sean Gilbertson is expected to give evidence at the London trial.

Russian oligarch wins divorce battle in Supreme Court

The Times / City A.M. / Daily Mail / London Evening Standard / Mirror.co.uk  

A sanctioned Russian oligarch, Vladimir Potanin, has won a long-running divorce battle against his ex-wife, Natalia Potanina, in the Supreme Court. The court ruled that the Court of Appeal had made an error in granting Potanina permission to bring a claim in London after their divorce in Russia. The case - the highest-value divorce case in English legal history - will now return to the Court of Appeal to address unresolved issues. The ruling has significant implications for London, which is known as the "divorce capital of the world." Experts suggest that claimants seeking to bring divorce proceedings in London after divorcing abroad will need to show substantial connections to England.

Former Linklaters partner sued for £31m by Saudi princess

The Times / Daily Mail / Mirror.co.uk  

A former City lawyer, Ronald Gibbs, faces a £31m legal dispute with Saudi Princess Deema Bint Sultan Bin Abdulaziz Al Saud. Gibbs, a former partner at Linklaters, claims that the lawsuit has destroyed his health and forced him to work cash-in-hand as a boat captain. The dispute revolves around the management of a $25m investment fund for the princess. Gibbs, who represented himself in court, stated that he has been financially broken by the claim and is now reliant on cash handouts. The princess's barrister is suing for the return of her original investment, as well as gains her financial advisers could have made with it since 2018.

Computer scientist faces legal action over Bitcoin founder claim

The Times / London Evening Standard  

Dr Craig Wright, the computer scientist accused of lying about being the founder of Bitcoin, has denied wanting to be publicly revealed as its creator. He is facing legal action over whether he is Satoshi Nakamoto, the pseudonym credited with creating the cryptocurrency. Dr Wright is being sued by the Crypto Open Patent Alliance (Copa) for allegedly lying and forging documents. In his witness statements, he stated that he never intended to shroud his identity in secrecy and that his goal was a certain level of privacy. Dr Wright claimed that the unexpected disclosure of his identity had unintended consequences, drawing public attention and speculation. The trial is ongoing in the High Court and is expected to conclude next month.

Grenfell firefighters win £20m settlement

Daily Mail / The Guardian / The Independent  

A group of 114 firefighters who attended the Grenfell Tower fire has secured payouts totalling £20m after taking legal action against cladding companies Arconic Architectural Products and Celotex and the main refurbishment contractor Rydon Maintenance Limited, as well as the Royal Borough of Kensington and Chelsea and the London Fire Commissioner. The Fire Brigades Union (FBU), which led the action, said some of its members were "unable to work again due to severe trauma," and others claimed for personal injury and loss resulting from "alleged negligence and breach of statutory duty." The FBU added: "We demand that the government takes urgent action to ensure such a disaster never recurs."