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JANUARY 2013
POST OFFICE LIMITED MATTERS — DISPUTE RESOLUTION
PRIVILEGED AND CONFIDENTIAL — CLAIMS OVER £500K OR THOSE OF A SENSITIVE NATURE
Minoan Group I POL/HF/R Nick Kennett On 17/10/12, Minoan Group Plc, an AIM listed I Minoan has made adjustments to the “look I CMS Cameron
ple Travel Kiosks I W (Financial Services); I travel and leisure company, announced an I and feel” of its kiosks to differentiate them I McKenna
Kevin Gilliland agreement with the National Federation of I from POL. Minoan have also stated that it
(Network & Sales) Subpostmasters (NFSP) to install computerized I will not offer POL “restricted services”,
travel agency kiosks across the Post Office I including travel insurance and foreign
network. exchange.
Minoan plan to pilot 50 kiosks in sub post I NFSP have also responded seeking to assure
offices, with 50 more being added every three I POL that “no agreed ‘restricted services’ will
months. Minoan aim to install at least 1,000 I be sold through the kiosk”.
kiosks within five years. The first kiosks have
now been installed. ‘A meeting is being arranged with Minoan and
NFSP in February 2013 to discuss Minoan’s
POL was not consulted about this agreement. kiosks and business objectives. This meeting
should enable POL to better assess the
POL’s solicitors have corresponded with I commercial viability of Minoan’s kiosks, and
Minoan’s solicitors to protect POL’s position. I therefore the risks it presents to POL’s
POL has also written to the NFSP expressing I business.
POL’s disappointment that the deal was
announced without any prior notice.
Claim for I POL/HF/R Angela A former subpostmaster (SPM) sought “judicial I At an oral hearing on 16/11/12, the Court gave I DAC
Judicial Review WwW ‘Van-Den-Bogerd review” of POL’s decision to terminate his SPM I the SPM permission to proceed to a full I Beachcrofts
contract. hearing. In doing so, the Court only found the
SPM’s case to be arguable, and did not make
The SPM claimed that POL’s termination I any conclusive findings on his claim.
process was flawed and infringed his Human
Rights. He asked the court to review POL’s I POL is finalising its evidence in response to
decision and find that it was unlawful and/or an I the SPM’s claim. That evidence and detailed
abuse of power. grounds of opposition will be filed by the end
of January 2013.
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Susan Crichton
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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.
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.
Customer POL/HF/R Angela The Claimant, an individual, started court I The Claim is currently stayed while the parties I Bond Pearce
Complaint - Age I W Van-Den-Bogerd proceedings under the Equality Act and Human I explore settlement.
and Disability Rights Act alleging disability and age
Discrimination discrimination against Shieldex Limited (a POL I In the interests of resolving this case, POL has
franchisee) and POL. offered to make certain adjustments to the
branch. It has done so without any admission
The complaint arises out of issues with customer I of liability, and (so far as is possible) without
access and service at a branch run by Shieldex. I creating a precedent for other branches.
Damages are claimed, but not quantified. The I POL has also claimed an indemnity from
estimated potential exposure (if the claim I Shieldex under the franchise agreement for the
succeeds) is likely to be in the region of £6,000 I costs which POL incurs as a result of
to £18,000, plus legal costs. Shieldex’s actions. POL’s ability to recover
these costs from Shieldex may be limited
If POL is found to be a service provider under I given Shieldex’s franchise agreements have
the Equality Act, and therefore liable to make I been terminated and that it is in a very weak
reasonable adjustments to premises, this is likely I financial position.
to have implications across the Network.
Horizon claims POL/HF/R Rod Ismay POL has received various claims from former I Following consultation with MPs, Second I Bond Pearce
Ww SPMs alleging wrongful termination of contract I Sight Support Services Ltd (an independent
based on alleged defects in POL’s internal
processes and alleged defects with the Horizon
system.
These allegations were initially made in 5 claims
investigator) is reviewing up to 16 cases
where SPMs allege that Horizon caused them
loss That investigation is currently
underway.
brought through the SPMs’ _ solicitors, I Post Office Ltd has also reached an agreement
Shoosmiths. To date, Shoosmiths have not I with Second Sight and Justice for
progressed 4 of the 5 claims, and POL I Subpostmasters Alliance (an organisation
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Susan Crichton
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successfully had the Court strike out the fifth I “established to raise awareness of the issues
claim. within the Post Office Horizon system”)
whereby individual subpostmasters can raise
These allegations are also being made through I concerns with Horizon within a “no blame”
SPMs’ MPs, and in defences to court I framework, provided such claims are brought
proceedings brought by POL to recover debts I by 28/02/13. Those concerns would be
from SPMs. considered as part of Second Sight’s review.
Employment POL/HF/R Colin Stretch Nine claims against POL are currently I Significant claims continue to be monitored I Weightmans /
Ww proceeding before the Employment Tribunals. (both internally and with external counsel) and I Eversheds (1x
risk assessed as they progress. case only)
Claims allege unfair dismissal for conduct, unfair
dismissal for capability, sex and race
discrimination, and victimisation.
Potential exposure to POL over five claims is
c.£250,000, with four cases yet to be valued.
Claims could require policy changes if upheld
(e.g. with respect to race or sex discrimination).
PART (B) — PRINCIPAL CRIMINAL CASES BROUGHT BY POST OFFICE LIMITED
in place. for 20/05/13.
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
Subpostmaster accused of theft of £85,872.07. Restraint order against assets is_I £16,000 to be recovered through confiscation proceedings. A final hearing has been set
£27,824.51.
Defendant pleaded guilty on the basis that the money was used to pay a debt as
Post Office manager accused of theft of £27,824.51. Defendant feared for his safety. The Court rejected this and on 07/12/12 sentenced him
to 200 hours unpaid community work (to be completed with 12 months) and
electronically monitored curfew for 2 months. POL has recovered the full sum of
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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. A timetable has been set for
confiscation proceedings to determine the sum payable to POL, with a final hearing set
for 11/02/13.
Two assistant sub postmasters accused of covering shortages by delaying the
processing of business deposits to Santander. Case concerned 40 deposit slips
being suppressed with a total value of £34,115.50.
POL has served expert reports and notice of additional evidence in preparation for trial
on 21/01/13.
Sub postmaster accused of theft of £78,660.63.
Defendant pleaded guilty on 07/01/13 and will be sentenced on a date to be set by the
court.
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 is to set a date for the first hearing of this case to determine the details of
trial.
Subpostmaster 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 £49,245.19
Defendant pleaded guilty and on 03/12/12 received a suspended sentenced of 9 months
imprisonment.
POL has recovered £49,245.19 to date.
Subpostmaster accused of theft of £25,860.66
Defendant has not indicated a plea. A Crown Court hearing on 21/01/13 will give case
management directions for plea and trial.
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