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England and Wales High Court (Family Division) Decisions |
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You are here: BAILII >> Databases >> England and Wales High Court (Family Division) Decisions >> O v P [2014] EWHC 2225 (Fam) (04 July 2014) URL: http://www.bailii.org/ew/cases/EWHC/Fam/2014/2225.html Cite as: [2014] EWHC 2225 (Fam), [2015] 2 FLR 77 |
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FAMILY DIVISION
Strand, London, WC2A 2LL |
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B e f o r e :
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IN THE MATTER OF AN APPLICATION UNDER SCHEDULE 1 TO THE CHILDREN ACT 1989 AND IN THE MATTER OF THE SENIOR COURTS ACT 1981 AND IN THE MATTER OF S (A MINOR) O |
Applicant |
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- and - |
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P |
Respondent |
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Susan Jacklin QC and Caroline Willbourne (instructed by Kingsford LLP) for the Respondent
Hearing dates: 7th, 8th, 9th, 10th and 30th April 2014
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Crown Copyright ©
INTRODUCTION AND SUMMARY OF BACKGROUND
"My prima facie view, subject of course to hearing further detailed submissions from counsel on behalf of mother, is that Australia would as a matter of practicalities and common sense be the appropriate forum to determine this dispute between the parties, if an appropriate remedy exists in Australia."
On the other hand, I noted that there were potential legal difficulties in granting a stay on grounds of forum non conveniens arising out of the decision of the European Court of Justice in Owusu v Jackson [2005] QB 801. Furthermore, the court had become aware that the question whether the decision in Owusu was applicable in family proceedings was going to be considered by the Court of Appeal in the Autumn in the case of Mittal v Mittal. Given these uncertainties, I concluded that there was no alternative to adjourning the substantive hearing again to December 2013.
CHILD SUPPORT PROCESSES IN AUSTRALIA
"17. It is not suggested that there are any assets in Australia. It is not suggested by [the father] that he has an income. Indeed, the order he seeks is a lump sum payment of zero. I do not know what, if any, impact such a final order as sought [the father] would have on the English proceedings. There is no evidence before me to indicate what that might be. However, given that the English proceedings are in an advanced state of preparation, are fixed for hearing in December and that there are significant assets under the control of that court to be dealt with as a consequence of those proceedings, the High Court in the United Kingdom is the convenient place in which those issues should be litigated.
18. That is to say, Australia is an inconvenient forum for the hearing of those issues. In coming to that view, I also take into account the nature of these proceedings which seem to be that there is simply sought a conversion of an order for a nil weekly payment into a lump sum nil payment."
"The assertions of bias are scandalous. But, more potently, the underlying thesis is frankly wrong. His Honour's decision was entirely correct. I am of the view that the father's appeal is devoid of merit and thus to grant an extension of time would be futile. To grant leave would be tantamount to permitting an abuse of process."
THE FINAL HEARING
STAY OF PROCEEDINGS ON GROUNDS OF FORUM NON CONVENIENS
Legal framework and case law
"Subject to the provisions of this Convention, persons domiciled in a Contracting State shall, whatever their nationality, be sued in the courts of that State. Persons who are not nationals of the State in which they are domiciled shall be governed by the rules of jurisdiction applicable to nationals of that State."
Article 3 provided, inter alia
"Persons domiciled in a Contracting State may be sued in the courts of another Contracting State only by virtue of the rules set out in Sections 2 to 6 of this Title" (i.e. within the provisions of Articles 5-18).
"... A person domiciled in a Contracting State may, in another Contracting State, be sued ... (2) in matters relating to maintenance, in the courts for the place where the maintenance creditor is domiciled or habitually resident or, if the matter is ancillary to proceedings concerning the status of a person, in the court which, according to its own law, has jurisdiction to entertain those proceedings, unless that jurisdiction is based solely on the nationality of one of the parties."
"Where proceedings involving the same cause of action and between the same parties are brought in the courts of different Contracting States, a court other than the court first seised shall of its own motion decline jurisdiction in favour of that court. A court which would be required to decline jurisdiction may stay its proceedings if the jurisdiction of the other court is contested."
"Where related actions are brought in the courts of different Contracting States, a court other than the court first seised may, while the actions are pending at first instance, stay its proceedings. A court other than the court first seised may also, on the application of one of the parties, decline jurisdiction if the law of that court permits the consolidation of related actions and the court first seised has jurisdiction over both actions. For the purposes of this Article, actions are deemed to be related where they are so closely connected that it is expedient to hear and determine them together to avoid the risk of irreconcilable judgments resulting from separate proceedings."
"Where actions come within the exclusive jurisdiction of several courts, any court other than the court first seised shall decline jurisdiction in favour of that court."
"The rules of jurisdiction must be highly predictable and founded on the principle that jurisdiction is generally based on the defendant's domicile and jurisdiction must always be available on this ground save in a few well-defined situations in which the subject-matter of the litigation or the autonomy of the parties warrants a different linking factor."
"Nothing in this Act shall prevent any court in the UK from staying striking out or dismissing any proceedings before it on the grounds of forum non conveniens or otherwise where to do so is not inconsistent with the 1968 Convention ."
It followed that the power to stay proceedings on the grounds of forum non conveniens was precluded where it was inconsistent with the Convention. Thus, where the defendant to the English proceedings was domiciled in England and the jurisdictional conflict was between the English court and a court of another Contracting State, there was no power to order a stay on that ground since such a power would be inconsistent with the Convention. The question arose as to whether there was a power to order a stay where the defendant to the English proceedings was domiciled in England and the jurisdictional conflict was between the English court and a court of a state that was not a Contracting State under the Convention.
"the Convention was intended to regulate jurisdiction as between the Contracting States . [T]he States which were parties to the Convention had no interest in requiring a Contracting State to exercise a jurisdiction where the competing jurisdiction was in a non-Contracting State. The Contracting States were setting up an intra-convention mandatory system of jurisdiction. They were not regulating relations with non-Contracting States".
"(1) Is it inconsistent with the [1968] Convention, where a claimant contends that jurisdiction is founded on Article 2, for a court of a Contracting State to exercise a discretionary power, available under its national law, to decline to hear proceedings brought against a person domiciled in that state in favour of the courts of a non-Contracting State (a) if the jurisdiction of no other Contracting State under the 1968 Convention is in issue, (b) if the proceedings have no connecting features to any other Contracting State?
(2) If the answer to question (1) (a) or (b) is yes, is it inconsistent in all the circumstances or only in some and if so which?"
The ECJ answered the first question in the affirmative, holding that Article 2 of the 1968 Convention applied in circumstances involving relationships between the courts of a Contracting State and a non-Contracting State and that the Convention precluded a court of a Contracting State from declining jurisdiction conferred on it by Article 2 on the ground that a court of a non-Contracting State would be a more appropriate forum for the trial of the action even if the jurisdiction of no other Contracting State was in issue or the proceedings had no connecting factors to any other Contracting State. The decisive argument for the Court was that
"respect for the principle of legal certainty, which is one of the objectives of the [1968] Convention would not be fully guaranteed if the court having jurisdiction under the Convention had to be allowed to apply the forum non conveniens doctrine" (paragraph 38).
"in order to delimit the scope of the questions, it is important to emphasise that the main proceedings do not constitute a case of lis pendens or of connection with proceedings pending before the court of a non-contracting state commenced before the matter came before a court of a Contracting state, nor of a case of a jurisdiction clause in favour of the courts of a non-contracting state."
In short, as Lewison LJ observed in Mittal v Mittal [2013] EWCA Civ 1255 at paragraph 19, "the first question was narrowly defined and the second was inadmissible."
"Such an interpretation would introduce the wide forum non conveniens discretion by the back door, contrary to the ruling of the ECJ in Owusu's case. In my view, the submission fails whether this court is the first or second seised."
"The question there was whether the court could stay proceedings in a case where the same point was being litigated between the same parties in the courts of a third country. He held that Owusu prevented that, essentially because the lis pendens rule is to some extent a facet of forum non conveniens. We do not have [to] decide whether that was correct, though we note that, if he is right, there is this oddity: that there is a clear lis pendens rule, with [an] associated first seised rule, for parallel cases` within the EU but none for parallel cases where one is running within an EU Member State and one without."
"[127] Owusu establishes where Article 2 confers personal jurisdiction in a court of a Member State by reason of the defendant's domicile in that State, the court cannot refuse to hear the case because there is an appropriate forum abroad. It does not begin to address a quite different question, namely, given personal jurisdiction, is the subject-matter jurisdiction of the court also displaced by Article 2?
[128] [Counsel] submitted that because Article 2 does confer subject-matter jurisdiction on the courts of a Member State in respect of acts done elsewhere in the EU, it must also have the same effect as regards acts done outside the EU. We do not see why .
[129] The regulation is not setting up the courts of the Member States as some kind of non-exclusive world tribunals for wrongs done outside the EU by persons who happen to be domiciled within the EU. That is the sort of thing that is done reciprocally and by an international convention it goes well beyond the remit of judges whose job it is to interpret the law, not to legislate."
"(a) The risk of irreconcilable judgments which undermine two important objectives of the Brussels scheme namely: avoiding irreconcilable judgments between Member States and ensuring recognition of judgments between Member States.
(b) It would lead to an undesirable lacuna, as there will be no mechanism in place for resolving this situation with the consequence of both proceedings continuing with the consequent increased uncertainty and cost.
(c) The supporting rationale by Jacob LJ in Lucasfilm [cited above] .
(d) The reasoning that underpins Owusu is not incompatible with retaining the discretionary power where there are parallel proceedings in a non-Member State. It does not undermine certainty for the defendant (as he will be bringing the proceedings in the non-Member State); the claimant (although not mentioned in Article ) will have knowledge of the proceedings in the non-Member State and it is likely to be in his interests to have one set of proceedings rather than two (the latter would happen if the Owusu doctrine was extended) ,,,"
Submissions on Owusu
Should a stay be granted in this case?
(1) A stay will only be granted on the ground of forum non conveniens where the court is satisfied that there is some other available forum, having competent jurisdiction, which is the appropriate forum for the trial of the action, i.e. where the case may be tried more suitably in the interests of all the parties and the ends of justice.(2) If the court is satisfied that there is another available forum which is prima facie the appropriate forum for the trial of the action, the burden will then shift to the claimant to show that there are special circumstances by reason of which justice requires that the trial should nevertheless take place in this country.
(3) The court will have regard inter alia to whether jurisdiction has been founded as of right. Is the connection with England a fragile one?
(4) If substantial justice can be done in the available, more appropriate, forum, or in both forums, the court should not have regard to a particular juridical advantage for one party in one forum rather than in the other.
(5) If there is no other available forum which is clearly more appropriate for the trial of the action, the court should ordinarily refuse a stay.
(6) If there is some other available forum which is prima facie more appropriate, the court will ordinarily grant a stay unless there are circumstances by reason of which justice requires that s stay should nevertheless not be granted.
(7) The court must consider all the circumstances of the case including those which go beyond those taken into account when considering connecting factors with other jurisdictions e.g. whether the claimant will obtain justice in the foreign jurisdiction.
THE SUBSTANTIVE APPLICATION UNDER SCHEDULE 1
The Law
"1 Orders for financial relief against parents
(1) On an application made by a parent of a child the court may
(a) in the case of an application to the High Court or a county court, make one or more of the orders mentioned in sub-paragraph (2)
.
(2) The orders referred to in sub-paragraph (1) are
(a) an order requiring either or both parents of a child
(i) to make to the applicant for the benefit of the child; or
(ii) to make to the child himself.
such periodical payments, for such term, as may be specified in the order;
(b) an order requiring either or both parents of a child
(i) to secure to the applicant for the benefit of the child; or
(ii) to secure to the child himself,
such periodical payments, for such term, as may be so specified;
(c) an order requiring either or both parents of a child
i) to pay to the applicant for the benefit of the child; or
ii) to pay to the child himself
such lump sum as may be so specified
.
(3) The powers conferred by this paragraph may be exercised at any time.
.
3 Duration of orders for financial relief
(1) The term to be specified in an order for periodical payments made under paragraph 1(2) (a) or (b) in favour of a child may begin with the date of the making of an application for the order in question but
(a) shall not in the first instance extend beyond the child's seventeenth birthday unless the courts thinks it right in the circumstances of the case to specify a later date; and
(b) shall not in any event extend beyond the child's eighteenth birthday
(2) Paragraph (b) of sub-paragraph (1) shall not apply in the case of a child if it appears to the court that
(a) the child is, or will be or (if an order were made without complying with that paragraph) would be receiving instruction at an educational establishment or undergoing training for a trade, profession or vocation, whether or not while in gainful employment; or
(b) there are special circumstances which justify the making of an order without complying with that paragraph
4 - Matters to which court is to have regard in making orders for financial relief
(1) In deciding whether to exercise its powers under paragraph 1 or 2, and if so in what manner, the court shall have regard to all the circumstances including
(a) the income, earning capacity, property and other financial resources which each person mentioned in sub-paragraph (4) has or is likely to have in the foreseeable future;
(b) the financial needs, obligations and responsibilities which each person mentioned in sub-paragraph (4) has or is likely to have in the foreseeable future
(c) the financial needs of the child;
(d) the income, earning capacity (if any), property and other financial resources of the child;
(e) any physical or mental disability of the child;
(f) the manner in which the child was being, or was expected to be, educated or trained
.
(3) The persons mentioned in sub-paragraph (1) are
(a) in relation to a decision whether to exercise its powers under paragraph 1, any parent of the child;
(b) .
(c) the applicant for the order;
(d) any other person in whose favour the court proposes to make the order.
5 Provisions relating to lump sums
(1) Without prejudice to the generality of paragraph 1, an order under that paragraph for the payment of a lump sum may be made for the purpose of enabling any liabilities or expenses
(a) incurred in connection with the birth of the child or in maintaining the child; and
(b) reasonably incurred before the making of the order to be met."
" (1) the welfare of the child while a minor, although not paramount, is a very relevant consideration as one of all the circumstances of the case;
(2) considerations as to the length and nature of the parents' relationship and whether or not the child was planned are generally of little if any relevance, since the child's needs and dependency are the same regardless;
(3) one of the financial needs of the child is for him to be cared for by a mother who is in a position, both financially and generally, to provide that caring. So it is well-established that a child's needs for a carer enables account to be taken of the caring parent's needs;
(4) the respective incomes, earning capacities, property and other financial resources of each of the parents must be taken into account, together with their respective financial needs, obligations and responsibilities. So the child is entitled to be brought up in circumstances which bear some sort of relationship with the father's current resources and the father's present standard of living;
(5) the latter concept lends itself to demands going potentially far wider than those reasonably necessary to enable the mother properly to support the child and it is necessary to guard against unreasonable claims made on the child's behalf but with the disguised element of providing for the mother's benefit rather than for the child;
(6) in cases where the father's resources permit and the mother lacks significant resources of her own, she will generally need suitable accommodation for herself and the child, settled for the duration of the child's minority with reversion to the father; a capital allowance for setting up a home and for a car; and income provision (with the expense of the child's education being taken care of, generally, by the father direct with the school);
(7) such income provision is reviewable from time to time, according to the changing circumstances of the parties and of the child;
(8) the overall result achieved by orders under Schedule 1 should be fair, just and reasonable taking into account all the circumstances."
"In considering the mother's budget, at least in bigger money cases, the court should paint with broad brush, not getting bogged down in detailed analysis and categorisations of specific items making up opposing budgetary presentations. Rather, the court should do its best to achieve a fair and realistic outcome by the application of broad common sense to the overall circumstances of the particular case."
Summary of the parties' cases
i) First, a sum to repay sums said to be loans made to the mother by the maternal grandmother from September 1999 to date. A schedule has been produced setting out details of these payments, totalling £142,763.ii) A lump sum to cover annualised periodical payments for S from 15th February 2002 ... the date on which, with permission of Kirkwood J, the mother and S left the jurisdiction and, it is agreed, ceased to be habitually resident here) until August 2008, calculated on the basis of published national foster care rates. The sum claimed under this heading is £37,535.98.
iii) A lump sum for estimated periodical payments from August 2008 to S's eighteenth birthday on 18th April 2015, and thereafter for a further period of four years to cover her maintenance during university education, calculated on the basis of the child care costs published in At a Glance in the sum of £219 per week. The sum claimed under this heading is £59,940.15.
iv) Education costs, including school fees already incurred (£35,231) estimated future school fees (£15,236) estimated university fees (£157,000) totalling £207,467.
v) The cost of a "modest" car - £6330.
vi) Costs of podiatry treatment, past and future, estimated at £881.93.
The total of all these claims is slightly under £455,000. Having deducted the sums paid under Singer J's interim orders, the net sum claimed is just under £399,000.
Discussion
Conduct
"There is nothing normal about my life. One comes to accept it as normal but it is not normal. I have for as long as possible tried to avoid being found by [the father]. I need to be around to raise my child. Nothing is normal. I may not be the same person as I was then. Work becomes incredibly difficult. In terms of living arrangements you have to change as many things as you can. You are not open with people when you make friends. On a day to day basis you live in fear. When a car stops outside that you don't expect, the instant reaction is "is it a bad person?" "do I need to run?" you learn to live with that, but it is always there. I don't feel any less frightened than I did fourteen years ago."
"Judge: What has been the impact on her of knowing he has these convictions?
Mother: There is a big fear; and big, big fear factor. She gets worried that something may happen to mum, and to her mum is everybody.
Judge: Presumably you can't keep secret the fact that there are measures to guard against the risk.
Mother: That's right. I have had to start including her as to the knowledge of those things. She is a bright young girl and understands they need to be there."
Delay
Disclosure
The Z House Fund
"Insofar as it refers to myself, it is not in dispute that I am outside the court's jurisdiction I did not retain any advisors in the court's jurisdiction so I am not bound by the said order I am however prepared to fully assist this court by providing a without prejudice statement."
"Putting aside the consequences of the criminal acts [by which he means the fraud allegedly perpetrated by his ex-wife] the [Z House fund] if my life tenancy be valid, is the property of my ex wife. However, as the present owners can no longer occupy the property, they would have a valid claim against my ex-wife for false conveyance."
The father further asserts that the ancillary relief order made in the divorce proceedings involving his ex-wife, under which the Z House fund was paid to him, was made without reference to his "life tenancy". In short, the father asserts that he is not entitled to any part of the proceeds of sale of Z House because the sale itself was unlawful as it was effected without reference to his alleged "life tenancy" in the property to which he says he is still entitled (and which, he adds, he intends to reclaim when he is released from prison).
The mother's income and earning capacity
The mother's relationship with X
The mother's capital
Maternal grandmother's financial support
"In particular, and following S's disappearance in December 1999 and from that date, I have helped [the mother] meet the costs of looking after S, travelling to and from Australia to find her. My husband and I have paid [the mother's] initial legal fees and from my investments and from my investments and from the income from my investments I have been in a position to help [the mother] not only with her personal expenses and to provide her with a loan to be able to purchase accommodation for herself and S but also to assist her in running and caring for the flat that she owns in Glasgow. The payments I have made are not a gift as the amounts are very substantially greater than any assistance I have given to either [of my other daughters], thus for [the mother] to have this amount for herself would be totally unfair to her sisters. "
Outgoings on behalf of S
School fees
University
Other sums claimed
CONCLUSION