FEBRUARY 2013
Strictly Confidential
POST OFFICE LIMITED MATTERS — DISPUTE RESOLUTION
PRIVILEGED AND CONFIDENTIAL — CLAIMS OVER £500K OR THOSE OF A SENSITIVE NATURE
POL00303045
POL00303045
POL/HF/R former subpostmaster (SPM) sought I At an oral hearing on 16/11/12, the Court I DAC
Judicial Review I W Van-Den-Bogerd “judicial review" of POL's decision to I gave the SPM permission to proceed to a I Beachcrofts
terminate his SPM contract. full hearing. In doing so, the Court only
found the SPM'’s case to be arguable, and
The SPM claimed that POL’s termination I did not make any conclusive findings on
process was flawed and infringed his I his claim.
Human Rights. He asked the court to
review POL’s decision and find that it was I POL is finalising its evidence in response
Significant Litigation Report Susan Crichton Page 1 of 5
16 January 2013
Strictly Confidential
POL00303045
POL00303045
unlawful and/or an abuse of power.
POL asked the Court to refuse to permit
judicial review of the decision on the
grounds that it was a commercial matter.
On 27/09/12 the Court refused the SPM
permission to pursue judicial review. The
Court did this on the papers without hearing
from the parties.
to the SPM’s claim. That evidence and
detailed grounds of opposition will be filed
by the end of January 2013.
The matter will then be listed for a
hearing during Q2 2013.
POL has started settlement discussions
with the SPM to see if a commercial
resolution can be reached.
POL/HF/R
Ww
Horizon claims Rod Ismay
POL has received various claims from
former SPMs alleging wrongful termination
of contract based on alleged defects in
POL's internal processes and _ alleged
defects with the Horizon system.
Following consultation with MPs, Second I Bond Pearce
Sight Support Services Ltd (an
independent investigator) is reviewing up
to 16 cases where SPMs allege that
Horizon caused them losses. That
investigation is currently underway.
Significant Litigation Report
Susan Crichton
16 January 2013
Page 2 of 5
POL00303045
POL00303045
Strictly Confidential
These allegations were initially made in 5
claims brought through the SPMs'’ solicitors, I Post Office Ltd has also reached an
Shoosmiths. To date, Shoosmiths have not I agreement with Second Sight and Justice
progressed 4 of the 5 claims, and POL I for Subpostmasters Alliance (an
successfully had the Court strike out the fifth I organisation “established to raise
claim. awareness of the issues within the Post
Office — Horizon system”) whereby
These allegations are also being made I individual subpostmasters can _ raise
through SPMs’ MPs, and in defences to I concerns with Horizon within a “no blame”
court proceedings brought by POL to I framework, provided such claims are
recover debts from SPMs. brought by 28/02/13. Those concerns
would be considered as part of Second
Sight’s review.
Employment POL/HF/R_ I Colin Stretch Four claims against POL are currently I Significant claims continue to be I Weightmans
Ww proceeding before the Employment I monitored (both internally and with
Tribunals. external counsel) and risk assessed as
they progress.
Claims allege unfair dismissal for conduct,
race discrimination, and victimisation. One
claim also relates to whistleblowing — but
external has advised POL that the
Claimant's prospects of success are low.
Potential exposure to POL over three claims
is c.£65,000 with two cases yet to be
valued.
Claims could require policy changes if
upheld (e.g. with respect to race or sex
discrimination).
Employment POL/HF/N I Colin Stretch A POL employee who is a Grade 2B Crown I The employee has consistently I Weightmans
M Post Office Assistant Branch Manager has I complained about what she believes is a
submitted campaign against her orchestrated by the
6 Employment Tribunal claims over the past I area CWU representative on racial
4 years alleging race discrimination, sex I grounds. POL anticipates this represents
discrimination, bullying and harassment and I a significant barrier to her re-deployment.
Significant Litigation Report
Susan Crichton
16 January 2013
Page 3 of 5
Strictly Confidential
POL00303045
POL00303045
victimisation against numerous POL
managers and a CWU representative.
The employee’s claims of race and sex
discrimination were not upheld, however the
employee's most recent ET claim for
victimisation did succeed. Judgment will
result in an award for ‘Injury to Feelings’ —
damages will be in the bracket of £6k - £19k
and it is possible the employee will institute
further legal proceedings. POL has been
advised that if the employee brings a further
claim of unfair and discriminatory dismissal,
compensation is uncapped and could be in
the range of £135,000 to £170,000.
The employee is currently suspended from
work and wants to be re-instated.
In all of the circumstances, POL
anticipates the way forward is a mutual
severance of the employment.
A mediation session between the parties
was held on 10/03/14. Employee was
reluctant to discuss settlement. An offer
of circa £50,000 was made, but was not
accepted by the employee. POL has
written to the employee formally setting
out the offer together with a Compromise
Agreement. Awaiting response.
If employee does not accept severance
payment, POL will institute dismissal
proceedings.
POL’s Communications team is engaged
in the event these claims are of interest to
the media.
Subpostmaster accused of theft of £85,872.07. Restraint order against
assets is in place.
PART (B) — PRINCIPAL CRIMINAL CASES BROUGHT BY POST OFFICE LIMITED
Defendant pleaded guilty to theft of £67,000 and has been sentenced to 12
months’ imprisonment (suspended for 2 years) with supervision and 100 hours
unpaid community work. Defendant has repaid £51,000 through the sale of
property, leaving £16,000 to be recovered by late accounts team. Therefore
confiscation proceedings to be withdrawn.
Subpostmaster accused of fraud of £38,284.68.
Defendant pleaded guilty and was sentenced to 6 months imprisonments
(suspended for 2 years) and 250 hours unpaid community work .At the
confiscation hearing on 11/02/13 agreed benefit of £38,284.68 and realisable
assets Of £113.Therefore confiscation order in the sum of £113 was made to
be paid within 28days and in default to serve 7days in custody.
Two assistant sub postmasters accused of covering shortages by
POL has served expert reports and notice of additional evidence in preparation
Significant Litigation Report
Susan Crichton
Page 4 of 5
16 January 2013
Strictly Confidential
POL00303045
POL00303045
delaying the processing of business deposits to Santander. Case
concerned 40 deposit slips being suppressed with a total value of
£34,115.50.
for trial listed for 15" April 2013.
Sub postmaster accused of theft of £78,660.63.
Having pleaded guilty .On the 5 /02/13 defendant was sentenced to 2 years
immediate imprisonment. A timetable has been set for confiscation
proceedings to determine the sum payable to POL with final hearing set for
9/05/13
Two brothers in partnership as subpostmasters accused of theft and/or
fraud of £237,240.64
On 09/10/12, the second day of trial, one Defendant pleaded guilty to
theft/fraud of £99,000. This was accepted by the prosecution and no evidence
was Offered against the other defendant. On 20/11/12 the guilty Defendant
was sentenced to 17 months imprisonment. A timetable was also set for
confiscation proceedings to determine the sum payable to POL, with final
hearing set for 20/05/13.
Subpostmaster accused of theft of £77,905.02
The court has set a hearing date of 26/02/13 to determine the details of trial.
Subpostermaster accused of theft of £57,811.79
Defendant pleaded guilty and on 28/11/12 was sentenced to 9 months
imprisonment (suspended for 18 months)and 180 hours unpaid community
work .A timetable has been set for confiscation proceedings to determine the
sum payable to POL with a final hearing set for 25/03/13
POL has recovered £43,988.03 to date.
Subpostmaster accused of theft of £25,860.66
Defendant having pleaded guilty and on 8/02/13 was sentenced to 12 months
imprisonment suspended for 2 years. Defendant was also ordered to pay
£1200 POL prosecution costs. POL has recovered £25,860.66
Subpostmaster accused of two offences of theft £9999.43 and
£175,260 and two offences of false accounting.
The court is to set a date for the first hearing of this case to determine the
details of trial.
Subpostmaster accused of fraud of £115,172.11
The court is to set a date for the first hearing of this case to determine the
details of trial
Significant Litigation Report
Susan Crichton
Page 5 of 5
16 January 2013