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POST OFFICE OVERTURNED CONVICTIONS
INDEPENDENT COMPENSATION ASSESSMENT PANEL
(PECUNIARY LOSSES)
JULY 2024 REPORT
Introduction
Following discussion with the Horizon Compensation Advisory Board, this report was
commissioned by the former Minister Hollinrake, with the intention that it is produced
quarterly’.
This Panel has been formed to facilitate the resolution of the pecuniary loss claims of
claimants whose convictions have been overturned by the courts, by providing an
independent assessment of any heads of pecuniary loss in dispute between a claimant and
the Post Office following the lodging of a claim, a response/initial offer by the Post Office
and without prejudice discussions/counteroffers. The procedure before the Panel is itself
non-binding and without prejudice, so that, after the assessment, either party may resort to
other forms of alternative dispute resolution or formal litigation if they do not accept the
assessment.
Figures
The position in respect of claims as at 28 June 2024 (Column 2), with the figures as at the
end of the previous calendar month for comparison (Column 1), is as follows.
Column 1_I Column 2
Number of Overturned Convictions (109) 110
Number of Claims Notified (108) 109?
Number of Ongoing Particularised Pecuniary Claims Received (5) 7
(i.e. Net of Full and Final Settlements)
Number of Assessed Offers Made in Ongoing Claims (i.e. Net (2) 2
of Full and Final Settlements)
Number of Offers Accepted (£600,000) (40) 44
Number of Offers Accepted (other than £600,000) (4) 4
Number of Ongoing Claims in which Interim Payments Made (57) 58°
Number of Claims Referred to Panel (0) 5
Number of Claimants Assessed by Panel (0) 0
Number of Assessments/Offers after Assessment Accepted (0) 0
Number of Full and Final Settlements (44) 48
Number of Claims Closed (37) 39%
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Total Amount of Interim Payments in Ongoing Claims (£17.3m) £17.8m>
Total Amount of Final Payments. (£28.8m) £31.2m®
Observations
1.
This scheme is relatively new and, as yet, there have been no completed references
to the Panel.
The main express function of the Panel is to make an independent assessment of
heads of pecuniary loss which cannot be agreed between the parties, which are likely
to be claims for loss of (future) income and loss of employment chance. It is
expected that most heads of claim will be compromised without reference to the
Panel. Once a head of claim is settled, then the Post Office pays out the agreed sum
for that head of claim (effectively by way of an additional interim payment)
The Post Office has made a standing upfront offer of £600,000 in full and final
settlement of all pecuniary and non-pecuniary losses which, as the above figures
show, has been successful in resolving over one-third of the claims. That offer
remains open to a claimant unless and until he or she submits a particularised
pecuniary or non-pecuniary claim.
Pending full settlement, a claimant is entitled to an interim payment of £163,000 on
notification of a legitimate claim, and a total interim payment of £450,000 on the
making a fully particularised claim (the latter being an early recommendation of the
Chair, which has been accepted the Post Office). The Panel has the power to make
a recommendation of a further interim payment in an appropriate individual case, but
has received no applications for further interim payments to date.
The Panel Chair has adopted a case management function to ensure that there are
no undue delays in the process of pecuniary claims through to an ultimate conclusion.
He has had several meetings with the parties, most recently on 20 May 2024, to
identify the most efficient and effective way of the Chair overseeing and driving
individual claims in this way — and issues that may delay further progress. The next
meeting is due to take place on 31 July 2024. At his request, most claimant
representatives have provided the Chair with a summary of each individual case,
identifying any issues which are slowing down progress; and the Chair has held a
separate meeting with the main claimants’ representatives (Hudgell & Co) to discuss
the progress of their individual cases. Those summaries are confidential; but, in
appropriate cases, will enable the Chair to give directions and/or have bilateral
meetings with the relevant claimant's representative and the Post Office
representatives to identify steps that can be taken to speed the process in that
individual case. The Chair regards this case management function as vitally
important.
In the last month, five claims have been referred to the Panel for case management
directions. Four of these cases are claims which have settled but there are
outstanding costs assessment issues. Case management meetings in these cases
have been fixed for 2 August 2024.
In respect of claims for loss of (future) income and loss of employment chance, the
Chair has investigated with the parties the possibility of identifying common issues or
questions which the Panel might determine relatively quickly through illustrative
cases. It was envisaged that these cases would be chosen with a view to the Panel
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not only making recommendations in relation to those specific cases, but also
enabling guidance to be given as to the likely approach of the Panel to particular
types of claim which will hopefully assist the parties in resolving other claims more
quickly. However, following consideration of the individual claims, the Chair accepts
that such common issues cannot be identified, at least at this stage. With the parties,
he is now seeking to identify individual cases in which there appears to be an issue
which is unlikely to be compromised without intervention of the Panel; so that these
can be brought to the Panel soon.
The Chair has the following particular concerns about factors which may slow future
progress.
(i)
(iii)
(iv)
It is an obvious concern that over half of the claimants have not yet either
accepted the £600,000 offer or lodged a particularised pecuniary loss claim for
assessment. Whilst of course some individual claims are currently awaiting an
expert report or Counsel's opinion to enable it to progress, the recent meetings
with the parties and reports of the claimants’ representatives on individual cases
do not suggest any current resource capacity issues in respect of either lawyers
or experts. The general picture is that those representing the claimants are
generally progressing the claims reasonably quickly but in a myriad of various
challenging circumstances. For example, some clients are traumatised or
otherwise suffering from mental health issues (often as a result of the
convictions themselves), which means that it is often a challenging and time-
consuming task for their legal representatives to take instructions, including the
particular claimant's version of historical events and their view of the
counterfactual (i.e. what would have happened but for the conviction). Some
clients are extremely distrusting, and sceptical of all aspects of the process
(including, in some cases, their own representatives). Some now live abroad
and have complex tax arrangements. For some, late disclosure of (e.g.) their
Post Office pension arrangements requires a recalculation of part of their
schedule of loss. The challenges faced by those representing the claimants
should not be underestimated. The Chair considers that careful and regular
case management of the individual cases will be the best way to progress these
claims. The Chair has discussed the possible benefits of introducing a “claims
facilitator” into the scheme; but the parties do not consider that that would
assist. The Chair agrees.
Whilst, at the moment, the claimants’ representatives say (and the Chair
accepts) that resource capacity is not a factor affecting speed of preparation of
claims etc, capacity generally may become an issue following the recent
statutory intervention to overturn (several hundred) other convictions. Those
representatives say, understandably, that it would be of considerable
assistance to them in planning resources to know (a) when the proposed new
scheme for the claimants whose convictions have been overturned by statute is
likely to be opened, and (b) the nature and terms of that scheme (including the
proposed cost provisions).
The claimants’ legal representatives say that the Post Office are
overdemanding in the particulars of claim it seeks, and slow in responding to
legitimate requests for disclosure of documents required for the making and
prosecution of a claim. The Chair is investigating this, through case
management. It is vital that requests for particulars of a claim are necessary
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and proportionate, and that disclosure of documents (particularly those in the
unique control of the Post Office) are made with expedition.
(v) Post Office endeavours to respond to a full pecuniary loss schedule, with an
offer, within 40 business days (i.e. 8 weeks). It seems that this is sometimes
extended to 10 or even 12 weeks. Furthermore, even where a loss schedule is
straightforward, an offer is rarely made in many fewer than 40 days. Again, this
does not appear to be a resource issue; but rather the result of the governance
procedures within the Post Office and DBT. Given that the initial Post Office
offer usually triggers a settlement, it would be helpful if these times could be
shortened.
(vi) Similarly, where a claimant's representative seeks approval for a disbursement
for (e.g.) further expert evidence, approval from the Post Office can take some
time — again, apparently, for governance reasons. The representatives have
suggested that they are granted a disbursement “cap” to enable them, within
that capped expenditure, to move more quickly. The Chair would welcome any
steps that can be taken to speed up the investigation process.
(vii) Serious concern has been expressed by some claimant representatives that
their costs claims are not being dealt with by the Post Office with due
expedition; and this poses a risk to the integrity of the scheme process,
because it undermines the confidence that the representatives have in the
scheme more widely. The Chair has encouraged representatives in settled
claims whose assessment of costs has been delayed to apply to the Panel for
directions in respect of assessment (rather than, e.g., pursue separate court
proceedings). Applications have been made in four cases, and case
management meetings (the parties and the Chair) have been fixed for 2 August
2024 in those cases.
(viii) More generally, concern has been expressed that “governance procedures”
within the Post Office and/or DBT have led to delay and disruption of the
procedures and timetable set out on the scheme.
9. The Chair does not envisage any delays once a claim is referred to the Panel for
consideration. The procedure requires the Chair to take into account the overriding
objective of the process, which is to achieve swift and fair resolutions at
proportionate cost. It is expected that most claims will be considered by the Panel
on the basis of written submissions only, with a short oral hearing only where
necessary. It is expected that most claims will be dealt with by the Panel, through to
a final assessment, within 2-4 weeks of reference. The Post Office is required to
settle a head of claim which is agreed within 28 days.
Sir Gary Hickinbottom
Chair
16 July 2024
' This first published report includes a brief overview of the processes involved in the Scheme, as well as data
and observations. Future monthly reports will focus on the data and observations on progress.
? This is the total number of claimants who have been in contact with the PO regarding the Overturned
Convictions Redress Scheme (not all of whom have yet applied for an initial interim payment).
° This is the total number of claimants to whom interim payments have been made, including initial £163,000
initial interim payments, proactive settlement payments, non-pecuniary settlements, and other interim or part
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settlement payments. This figure does not include claimants who had received interim payments but
subsequently fully and finally settled their claims.
4 Of the 48 full and final settlements, 9 claims still have outstanding legal costs to be agreed or assessed before
they can be closed. 6 of these claimants have submitted a costs schedule, 3 have yet to do so.
® This figure has been rounded to the nearest £0.1m. It includes all interim payments and includes proactive,
part and non-pecuniary settlements payments; but does not include interim payments made to Claimants who
have subsequently fully and finally settled their claims
© This figure has been rounded to the nearest £0.1m. It includes all £600,000 settlements as well as those who
have accepted offers following submission and assessment of a particularised claim.