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Q&As
The adjournment at short notice of court hearings is a source of extreme frustration and usually financial hardship for litigants. Where a case is vacated at the last minute, which has become increasingly frequent due to the shortage of district and deputy district judges and the coronavirus (COVID-19) pandemic, a litigant will have spent significant sums to engage counsel and for the preparation of the hearing. This is particularly problematic in family proceedings where the general outcome is that each party bears their own costs. HM Courts & Tribunals Service (HMCTS) does not offer compensation in circumstances where a case is vacated at short notice, and there is no formal application process for such compensation.
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Commercial analysis: The court held that RDA Television LLP (RDA) was entitled to terminate its contract with European Processional Club Rugby (EPCR) as a result of the postponement of matches due to the coronavirus (COVID-19) pandemic. The court held that the contract provided for the matches to be arranged within the season and EPCR’s delay in hosting these matches entitled RDA to terminate the contract pursuant to its force majeure provisions. The decision turned on the court’s interpretation of the contract and will be of interest to both non-contentious and contentious practitioners. Written by Nicole Bollard, barrister at 3PB Barristers.
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The Children and Family Court Advisory and Support Service (Cafcass) has published an update regarding the significant backlogs caused by working constraints of the coronavirus (COVID-19) pandemic in the family justice system. Provisions of the Domestic Abuse Perpetrator Programmes (DAPPs) has been impacted due to the necessary face-to-face delivery model and a few DAPP providers have had to reduce or suspend their offers. Cafcass has considered the development of remote DAPPs, however there is a lack of evidence to support the adoption of a remote model. A temporary process has been agreed to which will be applied in England.
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The Insolvency Service has disqualified Marian Ghimpu, a 58-year-old director from Croydon, for 13 years and ordered him to repay over £50,000 to the public purse. The action follows Ghimpu's fraudulent use of the Bounce Back Loan (BBL) scheme during the pandemic. Ghimpu was ordered to pay a compensation order of £52,163 and was given five weeks to pay this, to ensure the taxpayer has not lost out. The compensation order, issued on 25 July 2023, is the first of its kind secured by the Insolvency Service in court.
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The Courts and Tribunals Judiciary has published Judge Geraint Walters’ update to his reflections on how Swansea Crown Court adapted to the coronavirus (COVID-19) pandemic. In his update, Walters J shares his experience of presiding over jury trials at the new Nightingale court in Swansea. His reflections include how the court was transformed to allow enough space to socially distance a second jury panel, the setting aside of rooms for various tasks, including a Witness waiting room and a judge’s retiring room, and the taking on and training of new staff, including ‘new security staff and several new ushers’.
Q&As
On 23 October 2020, the Chair of the Local Government Association’s (LGA) Safer and Stronger Communities Board, Nesil Caliskan, made a statement on the tools councils should have to mitigate the spread of coronavirus (COVID-19). Caliskan felt that councils should be able to take ‘rapid action’ against businesses failing to implement safety measures, and he ‘look[s] forward to hearing more details…over the coming days’. See: LGA seeks tools to combat businesses
PRACTICE NOTES
ARCHIVED: This Practice Note has been archived and is not maintained. It describes the rules for overseas workday relief (OWR) in force before 6 April 2025. Overseas Workday Relief (OWR) is a relief from UK income tax for certain non-domiciled individuals, who have elected to be taxed on the remittance basis, on their unremitted 'general earnings' from employment related to duties performed overseas. As a result of the government’s changes to the taxation of non-domiciled individuals set out in Finance (No 2) Act 2017, a number of individuals who were previously regarded as non-domiciled under the UK tax rules, are now deemed UK domiciled for all tax purposes; meaning the remittance basis and OWR will no longer be available to them. See Practice Note: Deemed domicile for tax from 6 April 2017. Prior to 6 April 2013, a similar arrangement to OWR was available on a non-statutory basis under HMRC statement of practice 1/09 (SP 1/09) for individuals who were resident
PRACTICE NOTES
This Practice Note explains when the Hague Service Convention applies and the available channels for transmitting documents for service between contracting parties. It covers the Central Authority and postal channels, relevant declarations and objections, the service process, certificates of service, costs, translation and local law requirements. It also considers practical issues concerning the addressee’s location, disruption caused by emergencies and the HCCH Good Practices initiative. For guidance on: • preparing a request, proof of service and default judgment, see Practice Note: Hague Service Convention—preparing a request, proof of service and default judgment • considerations specific to England and Wales, see Practice Note: Hague Service Convention—England and Wales This Practice Note does not deal with the question of whether the court’s permission is required to serve documents outside England and Wales (England). For guidance, see Practice Notes: Cross-border service—a guide for dispute resolution practitioners and Cross-border service—is permission required to serve a defendant who is outside England and Wales? For an understanding of the convention, the Hague Convention on Private International
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The Civil Mediation Council (CMC) has published guidance relating to online and remote mediation in response to the coronavirus (COVID-19) pandemic. The guidance is to be used by mediators carrying out mediation remotely, by video or voice-only connections. The CMC confirms that the guidance is not intended to supersede information contained within a mediator’s Code of Practice, and states that mediators must continue to abide by such codes while carrying out remote mediation. The guidance provides information regarding measures prior to the mediation process, during mediation, and after mediation is complete.
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Property Disputes analysis: This is the first judgment to be handed down relating to a claim for arrears of rent and service charge of retail premises where the tenant relied upon the closure of retail units imposed upon them during lockdowns as a result of the coronavirus (COVID-19) pandemic. The claim was for arrears of rent and service charge and was defended on various grounds relating to the government’s response to the coronavirus pandemic as well as contentions relating to the landlord’s obligation to insure against loss of rent. Each of the defences was rejected by the court which awarded summary judgment for the landlord for the arrears of rent and service charge. Given that many commercial tenants have withheld rent on the strength of the imposed closures during periods of lockdown, the case provides guidance on some of the issues raised by tenants and will come as a welcome development for landlords. Written by Gary Cowen QC, Queen’s counsel at Falcon Chambers who appeared in the case for the landlord.
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The Insolvency Service has reported that Eunice Gill Dzodzome, the sole director of Reach Alive Limited, has breached the conditions of a government-backed loan that should have been used to support the business through the pandemic and not for personal use. When Reach Alive received a £45,000 Bounce Back Loan, Dzodzome transferred £40,000 into her personal account, which she then invested in cryptocurrency. Of the remaining loan, £2,000 was paid to Dzodzome as a director’s loan and £3,000 used as an advance payment towards her company’s liquidation. On 12 April 2022, the Secretary of State for Business, Energy and Industrial Strategy accepted an 11-year disqualification undertaking from Dzodzome.
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The Prudential Regulation Authority (PRA) has published consultation paper CP19/24, which proposes new liquidity reporting requirements for large life insurers and reduces the reporting expectations for firms using internal models. These reforms, developed with input from the Association of British Insurers (ABI) and other stakeholders, aim to address gaps in liquidity risk management that were highlighted by recent market stress events such as the Covid-19 pandemic and the liability-driven investment(LDI) crisis. The proposals include new templates for reporting cash flow mismatches, committed facilities, and liquidity market risk sensitivities. Responses are sought by 31 March 2025. The proposed implementation date for these changes is 31 December 2025.