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England and Wales High Court (Chancery Division) Decisions |
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You are here: BAILII >> Databases >> England and Wales High Court (Chancery Division) Decisions >> Blackfriars Ltd, Re [2020] EWHC 845 (Ch) (06 April 2020) URL: http://www.bailii.org/ew/cases/EWHC/Ch/2020/845.html Cite as: [2020] EWHC 845 (Ch) |
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BUSINESS AND PROPERTY COURTS
INSOLVENCY AND COMPANIES LIST (CHD
IN THE MATTER OF ON BLACKFRIARS LIMITED (IN LIQUIDATION)
AND IN THE MATTER OF THE INSOLVENCY ACT 1986
B e f o r e :
____________________
Adrian Charles Hyde and Kevin Anthony Murphy (Join Liquidators of One Blackfriars Limited) |
Claimants |
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- and - |
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Anthony David Nygate (in his capacity as representatives of the estate of James Joseph Bannon) and Sarah Megan Rayment (The Former Joint Administrators of One Blackfriars Limited) |
Respondents |
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Justin Fenwick QC and Ben Smiley (instructed by Mayer Brown) for the Respondents
Hearing dates: 1 April 2020
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Crown Copyright ©
JOHN KIMBELL QC:
Background
The form of the application
The Joint Liquidators' submissions
a. To proceed with the trial would be inconsistent with the Prime Minister's instruction to stay at home except for very limited purposes, issued on 23 March 2020, and more commonly referred to as the 'Lockdown'.
b. The trial, he submitted, cannot proceed without exposing participants and others working behind the scenes to an unacceptable risk to their health and safety.
c. The technological challenge posed by a five-week trial was too great. Such technology, as exists, he said, was untested.
d. There is a real risk of unfairness or potential unfairness in conducting a remote trial of this claim.
a. Far from being inconsistent with Government instructions, to proceed with the trial would be fully in accordance with both the primary legislation enacted in response to the COVID crisis and specific guidance given to the civil courts, both of which make clear that the appropriate response is to proceed with as many hearings as possible using video and remote technology.
b. A properly arranged remote trial could proceed without endangering the safety of the individual participants or the public.
c. The technology to conduct a fully remote trial is already available and has been successfully deployed already in some cases.
d. Whilst a remote trial will present challenges to all involved, it would not lead to unfairness.
e. The application was in any event premature because the parties have not yet had an opportunity to explore all of the remote technology options for a trial which, after all, is not scheduled to take place for another ten weeks.
Jurisdiction
(1) Alleged inconsistency with Government Instructions
"During the emergency period, no person may leave the place where they are living without reasonable excuse."
"For the purposes of paragraph (1), a reasonable excuse includes the need:"
…
(h): to fulfil a legal obligation, including attending court or satisfying bail conditions or to participate in legal proceedings."
"During the emergency period, no person may participate in a gathering in a public place of more than two people except ..."
"where reasonably necessary ... to participate in legal proceedings or fulfil a legal obligation."
"The rules in both the civil and family courts are flexible enough to enable telephone and video hearings of almost everything. Any legal impediments will be dealt with. HMCTS are working urgently on expanding the availability of technology but in the meantime we have phones, some video facilities and Skype…
The default position now in all jurisdictions must be that hearings should be conducted with one, or more than one, or all participants attending remotely. That will not always be possible. Sensible precautions must be taken when people attend a hearing."
"This pandemic will not be a phenomenon that continues only for a few weeks; at best it will suppress the normal functioning of society for many months. For that reason, we all need to recognise that we will be using technology to conduct business which, even a month ago, would have been unthinkable. Final hearings and hearings with contested evidence very shortly will inevitably be conducted using technology, otherwise there will be no hearings and access to justice will become a mirage."
"It may be difficult to maintain trials and final hearings in the short term, not least because of the inability of people to participate at all. As events develop individual decisions on priorities and practicalities will have to be made. The message is to do what can be done safely." (emphasis added)
"The current pandemic necessitates the use of remote hearings whenever possible. This protocol applies to hearings of all kinds, including trials. It should be applied flexibly."
"[10]. In the present circumstances, the court and the parties and their representatives will need to be more proactive in relation to all forthcoming hearings.
[16]. Judges, clerks, and/or officials will, in each case, wherever possible, propose to the parties one of three solutions:-
(i) a stated appropriate remote communication method (BT conference call, Skype for Business, court video link, BT MeetMe, Zoom, ordinary telephone call or another method) for the hearing;
(ii) that the case will proceed in court with appropriate precautions to prevent the transmission of Covid-19; or
(iii) that the case will need to be adjourned, because a remote hearing is not possible and the length of the hearing combined with the number of parties or overseas parties, representatives and/or witnesses make it undesirable to go ahead with a hearing in court at the current time.
[18] It will also be open to the court to fix a short remote case management conference in advance of the fixed hearing to allow for directions to be made in relation to the conduct of the hearing, the technology to be used, and/or any other relevant matters."
"We have put in place arrangements to use telephone, video and other technology to continue as many hearings as possible remotely. We will make best possible use of the equipment currently available; HMCTS is working round the clock to update and add to that. Some hearings, the most obvious being jury trials, cannot be conducted remotely."
"The courts exist to resolve disputes and, as I noted this morning, the guidance given by the Lord Chief Justice is very clear. The default position now in all jurisdictions must be that a hearing should be conducted with one, more than one, or all participants attending remotely. I accept that for various reasons, in particular the geographical location of the expert witnesses, this exercise will have particular challenges. But it seems to me that having regard to the need to keep the service of public resolution of disputes going, it is incumbent on the parties to seek to arrange a remote hearing if at all possible."
"Sittings of the High Court may be held, and any other business of the High Court may be conducted, at any place in England or Wales."
(2) Safety
a. First, the trial is not due to start until the week commencing 8 June 2020. The Government is due to review the state of the pandemic and whether the restrictions currently in place should continue in full force by my calculation on three occasions before the trial. It has been a very fast-moving situation and much could change in the next ten weeks as a result of any of those reviews.
b. Secondly, the court has very little concrete evidence of the particular difficulties that participants may have, and the parties have yet to ascertain the extent to which these genuine difficulties, if they exist, may be mitigated by particular arrangements for the individuals concerned. Information in relation to both the difficulties and possible mitigation should be provided to the court at the next pre-trial review.
c. Thirdly, if immovable obstacles do exist in relation to the participation of one or more experts, then I would expect the parties to co-operate and to propose ways in which issues which can be tried without the involvement of those particular witnesses. That is, it seems to me, a necessary part of the flexible case management envisaged under paragraph 18 of the Remote Hearing Protocol. I note in that regard that the areas of expertise said by Mr Davenport at the moment to be potentially affected by the personal circumstances of the expert witness concerned are those of development feasibility, development finance, and taxation and accounting. These are areas of expertise which either wholly or very substantially go to issues of quantum rather than liability.
d. Fourthly, it seems to me that there are steps which can be taken over the next three to four weeks to prepare for trial, such as completing the outstanding expert memoranda, the exchange of short supplementary expert reports and agreeing the trial bundle, which are necessary in any event, whether the trial ultimately goes ahead on all issues or only some, and which can be done safely and without travel or gatherings in contravention of the Coronavirus Regulations.
(3) The technological challenge
"A feature of the cross-examination of all the witnesses was the use throughout the trial of an electronic document presented system instead of a paper bundle. Having evidence available in electronic form is very useful but can be done such more simply than this. I was not convinced that the presentation system was helpful or worth the trouble it involved. Real flaws in the approach to cross-examination based on documents took place. For one thing, the system often had an appreciable delay, not always obvious to the cross-examiner, which meant that the witness and the cross-examiner were at cross-purposes. More significant was the way witnesses were given a single screen on which a single page being referred to was displayed in front of them. The display would frequently flash to a different page, often without warning and often before the witness had a chance to digest it properly or understand its context. I am sure the witnesses did not always read the text as carefully as they would have done if they had had some personal autonomy which allowed them some control over the text in front of them. That is the kind of autonomy a paper bundle gives a witness but it need not be on paper if the witness has some control over what is on their own screen. When it was clear that this was happening, I intervened to allow the witness to have a chance to read the material properly, otherwise there would have been a real unfairness. Unless such systems improve, I would in future require witnesses to be given a paper bundle."
"In addition, it is not yet known what the impact will be of so many of the population self-isolating and the concomitant pressure on broadband bandwidth. Experience suggests that, as a minimum recommended bandwidth for video hearings is 1.5 MBPS in both directions. It will be vital to monitor the situation to ensure that remote hearings are not being prejudiced by insufficient bandwidth being available to judges and parties connecting from diverse remote locations. To date, there have been few, if any, reported decisions regarding the availability of bandwidth."
(4) Potential Unfairness
Overriding Objective
Conclusion
Note 1 https://www.judiciary.uk/announcements/coronavirus-covid-19-message-from-the-lord-chief-justice-to-judges-in-the-civil-and-family-courts/ [Back] Note 2 https://www.judiciary.uk/publications/civil-court-guidance-on-how-to-conduct-remote-hearings/ [Back] Note 3 https://www.judiciary.uk/announcements/review-of-court-arrangements-due-to-covid-19-message-from-the-lord-chief-justice/ [Back] Note 4 https://www.lawgazette.co.uk/practice/first-all-skype-trial-tests-crisis-working-at-cop-/5103541.article [Back] Note 5 https://www.judiciary.uk/wp-content/uploads/2020/04/The-Remote-Access-Family-Court-Version-3-Final-03.04.20.pdf [Back] Note 6 http://www.transparencyproject.org.uk/remote-justice-a-family-perspective/ [Back]