BEIS0001161
BEIS0001161
From: Creswell, Carl (Professional Business Services, Retail & Post
Directorate )[/O=EXCHANGELABS/OU=EXCHANGE ADMINISTRATIVE GROUP
(FYDIBOHF23SPDLT)/CN=RECIPIENTS/CN=8E96F8EDAEAC428BA60B03307
B7392D3-CARL.CRESWE]
Sent: Tue 10/12/2019 10:51:08 PM (UTC)
To: Chisholm, Alex (BEIS):
Subject: RE: POL final draft Settlement Agreement - GLO - off sen commercial
Thanks very much, Alex — much appreciated! And lots of credit to UKGI for their work on this.
I hope to at least be able to give you your evenings back now (albeit I know the life of a Perm
Sec is that there will be others wanting your time too!).
Best wishes,
Carl.
de Carl Creswell
pe Director, Professional & Business Services, Retail and Post
Department for
Business, Energy
fs i) hard 2, 1 Victoria Street, London SW1H OET
& Industrial Strategy rchar ictoria Street, London
www.gov.uk/beis I https://twitter.com/beisqovuk
From: Chisholm, Alex (BEIS)
Sent: 10 December 2019 22:
UKGI
_5 Cooper, Tom - UKG
ettlement Agreement -
- off sen commercia
OFFICIAL-SENSITIVE: COMMERCIAL
Carl,
Thanks for helpful explanation. Yes I agree with you we should give our consent to this settlement.
Please pass my congratulations and thanks to the team who have worked hard and skilfully in a tight
corner. Thanks also to you, Tom and Richard for sterling work.
Alex
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From: Creswell, Carl (Professional Business Services, Retail & Post Directorate)
Sent: Tuesday, December 10, 2019 10:34 pm
To: Chisholm, Alex (BEIS)
Cc: Permanent Secretary; Watson, Richard - UKGI; Cooper, Tom - UKGI
Subject: RE: POL final draft Settlement Agreement - GLO - off sen commercial
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OFFICIAL-SENSITIVE: COMMERCIAL
Thanks, Alex - I am pleased to say we have just had word that the claimants have agreed the
whole deal. The POL Chair and CEO have also approved it so it now falls to us to consider
approving this evening too.
On your fundamental question, the settlement concludes all claimants’ claims in the litigation
and is as comprehensive as we consider possible as advised to Ministers in Richard
Watson's sub on Friday. This position reflects the views of BEIS, UKGI, POL and GLD.
The detail on the historic claims is that POL have no visibility of whether there are any
potential claimants in this category. They cover a spectrum that could range from existing
postmasters who bring complaints about shortfalls they have had to repay to former
postmasters whose appointments were terminated and might bring significant claims for loss
of earnings. On best estimates — as outlined in the sub to Ministers — is that if there were 100
claims arising from former postmasters and another 100 arising from current postmasters, this
might require a POL budget of £9m. There are arguments that due to the passage of time
some of these potential claims may no longer be allowed to be brought, either on the grounds
that they are time-barred or because the claimants have had ample opportunity to join the
Group litigation.
For anyone wanting to bring a claim the historic shortfall group process is the most cost
effective. POL can't prevent people bringing court claims but the intention is that postmasters
would prefer the historic shortfall group route because it will be cheaper for all. There is no
cost cap in the deed but it does refer to establishing a cost effective scheme to the
satisfaction of the two barristers. The two named barristers are the independent mediators
who have been dealing with this mediation.
On this basis, I am proposing that we give the required financial approval. Given you’ve
asked these questions, could you confirm that you're content for me to do so this evening,
please? Richard Watson and I could have a call with you if needed!
Many thanks,
Carl.
RR Carl Creswell
Pe Dire ional & Business Services, Retail and Post
Department for it Te I
Business, Energy
& Industrial Strategy
‘Orchard 2, 1 Victoria Street, London SW1H OET
www.gov.uk/beis I https://twitter.com/beisqovuk
From: Chisholm, Alex (BEIS)
Sent: 10 December 2019 21:58
To: Creswell, Carl (Professional Business Services, Retail & Post Directorate)
ermanent Secretar
Thanks Carl
Good to hear this.
Can you please remind me what is the range of potential costs for ‘historical shortfalls’? With some
sense of more zone? And what protections we have against cost escalation here? I assume the two
named barristers are one in each side?
Please also confirm how you/UKGI/GLD/POL see this as falling within the agreed terms set by
ministers ie how it achieves finality and comprehensiveness within the acceptable sense of those
words in the specific legal context.
Thanks again
A
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BEIS0001161
To: Chisholm, Alex (BEIS) GRO
Cc: Permanent Secretary; —
Subject: Fwd: POL final draft Settlement Agreement - GLO - off sen commercial
For info - I have read this latest draft and am content with it. Mediation still in play this evening.
’'m not expecting you to read or comment at this late hour, but wanted to keep you looped in.
c
From: Watson, Richard - UKGI
Sent: Tuesday, December 10, 2019 9:31 PM
To: Cooper, Tom - UKGI; Creswell, Carl (Professional Business Services, Retail & Post Directorate)
Subject: Re: Settlement Agreement - GLO
I have read this and am content it is as far as we are going to get. Of course there remain risks but as
Ben says this is the result of compromise after days of negotiation.
Let me know if you would like to discuss any aspect or set up a call with Ben/Herbert Smith
Richard
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From: Ben Foat
BEIS0001161
BEISO001161
Sent: Tuesday, December 10, 2019 9:09 PM
To: Watson, Richard - UKGI; Cooper, Tom - UKGI; Creswell, Carl (Professional Business Services, Retail
& Post Directorate)
Cc: Nick Read; Tim Parker; Patrick Bourke; Rodric Williams; Emanuel, Catherine; Watts, Alan; Lord,
William
Subject: Settlement Agreement - GLO
Richard,
As requested, please find attached the latest version of the settlement agreement.
The parties are very close now on the settlement agreement. There is one outstanding issue which
we are awaiting to hear back from the other side. The content of the agreement reflects a
compromise between the parties. They have agreed not to require the POL CEO to provide individual
personal letter to each claimant. The central risk is that we can’t put a number on the potential new
claims that we will receive as a result of the historical shortfalls but this risk exists irrespective of this
settlement. What the settlement agreement does seek to do is to provide a dispute resolution
process to manage the process more efficiently ultimately culminating in an arbitration on larger
claims and hence avoiding another GLO (and the associated funding costs) although it can’t obviously
be ruled out.
I will revert once we have heard back from the other side with hopefully confirmation that the
settlement agreement has been agreed.
Kind regards
Ben
Me Ben Foat
Group General Counsel
Department for Ground Floor
, Energy 20 Finsbury Street
& Industrial Strategy LONDON
EC2Y 9AQ
Mobile :!
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