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Scottish Court of Session Decisions |
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You are here: BAILII >> Databases >> Scottish Court of Session Decisions >> Clark v. Hope & Anor [2005] ScotCS CSOH_106 (08 August 2005) URL: http://www.bailii.org/scot/cases/ScotCS/2005/CSOH_106.html Cite as: 2006 SCLR 98, [2005] CSOH 106, [2005] ScotCS CSOH_106 |
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Clark v. Hope & Anor [2005] ScotCS CSOH_106 (08 August 2005)
OUTER HOUSE, COURT OF SESSION [2005] CSOH 106 |
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A948/00
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OPINION OF LORD GLENNIE in the cause SHEILA CLARK (AP) Pursuer and Respondent; against ROBERT HOPE and ANOTHER Defenders and Minuters:
________________ |
Pursuer and Respondent: Party
Defenders and Minuters: McShane; HBM Sayers
8 August 2005
"Terms of settlement
The Defenders will pay to the Pursuer £100,000
The Defenders will be responsible for payment of CRU benefits.
The Defenders will bear the Pursuer's expenses up to a maximum of £50,000 on an agent and client third party paying basis.
The Defenders will not seek to enforce awards of expenses in their favour.
In respect whereof
[counsel] for the Pursuers
[counsel] for the Defenders
29/6/04"
As a result of this apparent agreement, the case did not come before the Court on that day. I infer that, in the usual course, the Keeper was informed that the case had settled. It was no doubt anticipated that a Joint Minute would be forthcoming.
"We now enclose our clients' cheque for £100,000 in settlement of the principal sum and payable to the Scottish Legal Aid Board. Please would you acknowledge receipt and also let us have the Board's receipt in due course.
We look forward to receipt of your own account of expenses and details of expenses and details of other legal expenses incurred by the pursuer with regard to these proceedings."
On 14 July 2004 Morton Fraser wrote back acknowledging receipt and confirming that they had forwarded the cheque to SLAB. They continued:
"We attach a draft Joint Minute for consideration by you. Once that has been disposed of we shall forward you our Account of Expenses."
They then referred to the question of an additional fee. SLAB receipted the payment on 16 July and on 21 July Morton Fraser sent a copy of that receipt to the defenders' agents.
"The pursuer and [counsel] for the defenders concur in stating to the Court that this action has been settled extra judicially. They therefore crave the Court:-
(1) to find the defenders liable to the pursuer in the expenses of the action up to a maximum of £50,000 on an agent and client third party paying basis, with no contra awards of expenses to be enforced by the defenders; and
(2) Quoad ultra to assoilzie the defenders from the conclusions of the Summons."
It appears from a motion enrolled by the defenders on 21 September 2004 that the Joint Minute was sent by the defenders' agents to agents for the pursuer on 10 August 2004 in the expectation that it would be signed by or on behalf of the pursuer and then lodged in process with the appropriate motion to have the authority of the Court interponed thereto. But it has never been signed by or on behalf of the pursuer. Nor was there any motion enrolled to interpone the authority of the Court. Hence the defenders' motion enrolled on 21 September 2004 sought an order that the pursuer's agents should take those steps. That motion was dropped. On 8 November 2004 the defenders' agents enrolled a motion seeking an order requiring the pursuer to appear to explain her failure to execute and return the Joint Minute, "the principal sum agreed in settlement of this action having been paid". That motion shows that the pursuer's solicitors had withdrawn from acting at some time between drafting the Joint Minute and it being sent back to them for signature. On receipt of the Joint Minute, they had, therefore, returned it to the defenders' solicitors, who in turn sent it to the pursuer herself by letter of 1 October 2004 asking her to sign and return it. She has not done so.
"(1) the pursuer has received no payment of any sum in settlement of this case.
The motion was heard by Lord Carloway on 10 November. The interlocutor pronounced on that day was that "The Lord Ordinary having heard Counsel and the Pursuer personally, on the Defenders' motion, makes no order". In the Minute of Proceedings it is noted that the Lord Ordinary "advised the pursuer to contact solicitors in respect of her insisting that she disputed that 'settlement', together with expenses, had been reached on 29 June 2004, and warned her of the consequences that may occur in the future."
"On behalf of the pursuer to reinstate Mr Alistair Hope (Third Defender) Mrs Michelle Hope (Fourth Defender) and Temple House Private Nursing Home (Fifth Defender) as stated on the original summons dated 25th April 2000"
The defenders marked opposition to the motion stating that it was not competent since the action had settled; and that, in any event, the Court should deal with this motion at the same time as the pending Minute procedure.
"1. [the pursuer's] advocate informed [the pursuer] that he was experienced in dealing with legal aid cases, and reparation work.
These were clearly not answers as required by the interlocutor of 7 December 2004. Nor did the points made in the fax make it clear what was or was not in issue. For example, it was not clear whether the fact of the settlement agreement was being put in issue; whether it was said that the pursuer's counsel had exceeded his authority, and, if so, whether this was relied on as undermining the settlement agreement or was simply a rehearsal of a complaint about counsel; or what was the significance of the point about payment to the Scottish Legal Aid Board. In those circumstances counsel for the defenders moved at Bar for decree by default. I refused that motion. Where a party is unrepresented, it is, to my mind, inappropriate to move quickly to decree by default when there is the possibility that the pursuer had not fully appreciated what was required. There is a risk of unfairness. Accordingly, at that By Order hearing I explained to the pursuer what was required, namely that in her answers she required to answer the individual averments in the Minute - identifying what was accepted and what was not accepted - as well as setting out any case she might have as to whether there was or was not a settlement and why any settlement (if she accepted that there was a settlement) should not be enforced. In the Court's interlocutor of 10 March 2005 the pursuer was allowed
"a period of 4 weeks from this date to lodge Answers in the form prescribed by Rule of Court 18.3(2) ..."
That period of 4 weeks gave the pursuer until 7 April to lodge Answers. A further period of two weeks was allowed for adjustment. I continued the cause By Order until 28 April 2005; allowed parties to enrol any motion for further procedure to be heard at the By Order diet; and directed that any motion by the defenders for decree in the action must be intimated to the pursuer by 22 April 2005, the purpose of this latter direction being to ensure that the pursuer, being a party litigant, had adequate notice of any such motion and the basis for it.
"On behalf of the defenders and Minuters to sustain the third and forth pleas-in-law of the Minute (as adjusted) and thereafter to grant decree as craved, the pursuer and respondent being in default of Rule of Court 18.3(2) and of an interlocutor of this Court. Esto the pursuer and respondent is not in default the defenders and Minuters seek a hearing on the Minute and Answers."
Opposition was marked to this Motion.
"1. The terms of the settlement, as stated to the pursuer by the advocate have not been met, and in any event are totally inadequate in relation to an employer liability action.
The pursuer's signature of agreement was not asked for, but rather rejected by the advocate.
The defenders are therefore not entitled to absolvitor."
The matter duly came before me on 28 April when the pursuer sought further time to consult a solicitor with regard to the proper presentation of her case. She explained that she had been unwell for part of the time since the last hearing. There was discussion about her continued failure to lodge Answers as required. With some reluctance I allowed her a further two weeks "to consider with legal advice what Answers are to be stated to the Minute". I continued consideration of both motions until 13 May 2005. At the continued hearing on 13 May, the pursuer again appeared in person and sought a further 4 week adjournment. I refused this motion for an adjournment; but I allowed the pursuer an adjournment until 11a.m. so as to give her time to collect her papers from her car. I stated that I would then hear the outstanding motions. It was then reported to me that the pursuer was unwell and unable to attend further, so I had no alternative but to adjourn the hearing on the outstanding motions until 20 May 2005. There was no attendance by the pursuer on that adjourned hearing - the Court was shown a faxed medical certificate stating that she was not able to appear - so I continued the matter until 3 June. There was no appearance by the pursuer on that day either - a virtually identical medical certificate having been sent to the Court - so again the case had to be continued until 24 June. My interlocutor, however, made it clear that if the pursuer failed either to appear or be represented at that hearing the Court might grant such order as it thought fit in all the circumstances.
"There should be a concise, accurate and frank response to the articles of the condescendence. Every fact should be answered."
There is not, of course, a requirement in every case that a Minute be answered. But Lady Paton in her interlocutor of 7 December 2004 ordained the pursuer to lodge in process written answers to the Minute. This brings Rule of Court 18.3 into play. If there were any doubt about it, my interlocutor of 10 March 2005 allowing the pursuer a period of 4 weeks to lodge answers in the form prescribed by Rule of Court 18.3(2) made the position clear. Further, whatever had been the pursuer's understanding prior to that hearing before me, I made it clear on that occasion as well as at the hearing on 28 April 2005 that the pursuer was required to go through the Minute and answer point by point the averments made therein. There was no room for any misunderstanding. The pursuer has failed to provide answers. The documents provided to the Court and to the defenders can neither in form nor in substance be regarded as answers. They simply summarise the broad points sought to be advanced by the pursuer without giving any detailed admissions or denials on the basis of which those points can be assessed. In these circumstances the defender is correct in saying that there has been a default by the pursuer both of Rule of Court 18.3(2) and of the interlocutors of this Court. In such circumstances the Court has power to pronounce decree by default. In Mackay's Manual of Practice at page 310 it is said that this power to pronounce decree by default for disobedience of any statutory rule or order of the Court is only exercised in extreme cases, as it is not expedient that a cause should be decided without consideration of the merits. I accept that as an accurate statement of the position. However, in this case the pursuer has had ample opportunity to comply with the terms of the interlocutor. In principle, therefore, I see no reason why I should not accede to the defenders' motion. But before doing so, however, I propose to consider as best I can the lines of argument raised by the pursuer in case they show that there is a real point of substance that she can advance and, therefore, whether it would be unjust, despite her being in default, to grant decree on the defenders' motion. I am grateful to counsel for the defenders for his very full assistance in undertaking this task.
(1) The first complaint appeared to concern the role of the pursuer's counsel and the information that he gave her. Further, he did not ask her to sign the settlement agreement.
(2) The second complaint concerned the way in which expenses were dealt with in the settlement agreement - the pursuer's counsel did not, it is said, tell the pursuer that these would be on an agent and client third party paying basis.
(3) The third complaint appeared to be that the defenders were in breach of contract. The settlement terms had not been met. Payment had not been made within the seven days. Nor had the payment been made to her.
(4) The fourth complaint was that the terms of settlement were inadequate.
Counsel for the defenders added that there were other matters touched upon by the pursuer. The pursuer said that counsel had claimed to be experienced in personal injury matters; but it was not clear whether she was saying that that claim was untrue, or what, if any, consequence was said to flow from this. Further, the pursuer said that she had been advised that the case had not settled; but this was irrelevant, since whether or not the case had settled was a matter for the Court to decide on the materials before it.
(1) When counsel is instructed, and his mandate is not placed in issue, he has authority to sign an agreement on behalf of the party by whom he is instructed.
(2) In so far as any of the points raised by the pursuer are directed towards establishing a case for reduction of the settlement agreement, there is no basis in law for reduction unless any misrepresentation is induced by the other party to the agreement.
(3) On the face of the settlement agreement, there is no indication that it was a term of the settlement that payment would be made within seven days; nor, even it was, could that be said to be an essential term of the agreement.
In my opinion these submissions are correct. Submissions (2), (3) and (5) are self-evidently correct and I propose to say no more about them, save to note that counsel drew my attention, in support of submission (2), to Stewart v Kennedy 1819 17 R(HL) 25 and, in support of submission (5) to North British Railway Company v John Wood 1991 18 R(HL) 27 and John Dornan v James Allan 1900 3 F 112. I will, however, say something more about submissions (1) and (5).
"An Advocate in undertaking the conduct of a cause in this Court enters into no contract with his client, but takes on himself an office in the performance of which he has a duty, not to his client only, but also to the Court, to the members of his own profession, and to the public. From this it follows that he is not at liberty to decline, except in very special circumstances, to act for any litigant who applies for his advice and aid, and that he is bound in any cause that comes into court to take the retainer of the party who first applies to him. It follows, also, that he cannot demand or recover by action any remuneration for his services, though in practice he receives honoraria in consideration of these services. Another result is, that while the client may get rid of his counsel whenever he pleases, and employ another, it is by no means easy for a counsel to get rid of his client. On the other hand, the nature of the advocate's office makes it clear that in the performance of his duty he must be entirely independent, and act according to his own discretion and judgement in the conduct of the cause for his client. His legal right is to conduct the cause without any regard to the wishes of his client, so long as his mandate is unrecalled, and what he does bona fides according to his own judgement will bind his client, and will not expose him to any action for what he has done, even if the client's interests are thereby prejudiced. These legal powers of counsel are seldom, if ever, exercised to the full extent, because counsel are restrained by consideration of propriety and expediency from doing so. But in such a case as this it is necessary to have in view what is the full extent of their legal powers." (emphasis added)
That passage was approved in Brodt, which concerned a settlement agreement concluded by exchange of solicitors' letters sent on the instructions of counsel. This agreement, so the Court held, contained matters collateral to and outwith the subject matter of the actions. Accordingly, the defender was not bound by it. The reasoning of the Court is couched in terms of distinguishing between judicial and extrajudicial settlements. Counsel has the right to settle a case by judicial settlement; but it does not follow that counsel has authority to enter into an extrajudicial settlement - see per Lord Justice-Clerk, Ross at page 274h-j. Lord Dunpark appears to adopt the same language. However, whatever the language used, it seems clear that the distinction being made between judicial and extrajudicial settlements is not a distinction based upon whether or not the settlement is made by an act in the Court process (such as lodging an acceptance of a tender in Court, or the interponing of the authority of the court to a joint Minute); rather the distinction is between settlements which are entered into as part of the ordinary conduct of the case and those which include matters extraneous thereto. That the distinction is not the more limited one is, to my mind, made clear by the citation in the opinion of Lord Dunpark of a passage from Lord Kyllachy in the unreported case of Sutherland v Mackenzie, 2 August 1897:
"It was not ultimately maintained that the defender's counsel had power without special authority to effect an extrajudicial settlement. The settlement by counsel made at the bar and communicated to the Court by joint Minute, or otherwise (in other words a judicial settlement) is, the Lord Ordinary has no doubt, at least in general, covered by the mandate constituted by counsel's gown. ..." (emphasis added)
That type of settlement is made not by the act of lodging in Court the joint Minute but by agreement which precedes the joint Minute. It follows that the settlement made in discussions between counsel which result in the settlement being communicated to the Court by joint Minute is as much a judicial settlement - and within the authority of counsel - as a settlement affected by lodging in Court an acceptance of tender. The distinction when applied to the question of counsel's authority between extrajudicial and judicial settlements is in reality a distinction between settlements falling full square within the ambit of the action and settlements which introduce extraneous matters. The former is within counsel's authority, the latter not. I am reinforced in this view by the remarks of the Lord Justice-Clerk in Gaw at page 51-52 which show that a settlement agreement need not contain words dealing in terms with the disposal of the action and will be binding even though the Court has not interponed its authority thereto.