JULY 2013
Strictly Confidential
POST OFFICE LIMITED MATTERS — DISPUTE RESOLUTION
PRIVILEGED AND CONFIDENTIAL — CLAIMS OVER £500K OR THOSE OF A SENSITIVE NATURE
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Horizon claims
POL/HF/RW
Simon Baker
POL has received various claims from
subpostmasters (SPMs) alleging wrongful
termination of contract and/or damages based
on alleged defects in the Horizon system and
POL's internal processes.
These allegations were initially made in 5
claims brought through the SPMs'’ solicitors,
Shoosmiths. I Shoosmiths is not currently
progressing these claims through the courts.
Similar allegations are also being made through
SPMs’ MPs, through the “Justice for
Subpostmasters Alliance” (JFSA), and in
defences to court proceedings brought by POL
to recover debts from SPMs.
‘An independent investigator Second Sight
Support Services Ltd (Second Sight) has been
reviewing these allegations in consultation with
James Arbuthnot MP and JFSA.
On 08.07.13, Second Sight provided an
interim report on its review. This is the
subject of a stand-alone report to the Board.
Second Sights initial findings (based on its
review of 4 of the 47 cases being considered)
conclude that while there are no systemic
problems with Horizon, there are two specific
“bugs”, which gave rise to errors in a number
of branches’ accounts. Second Sight also
highlighted shortcomings in POL’s internal
training and support to SPMs in relation to
the Horizon system
Second Sight is continuing to investigate the
SPMs’ concerns. POL is cooperating with
Second Sight’s investigation and conducting
a review of the criminal and civil proceedings
it has issued against SPMs where issues with
the Horizon system have been raised to
establish which cases may be vulnerable to
challenge.
Bond Dickinson
Claim for Judicial
Review
POL/HF/RW
Angela
Van-Den-Bogerd
A former subpostmaster (SPM) has sought
“judicial review” of POL’s decision to terminate
his SPM contract.
The SPM _ claimed that POL’s termination
The parties are waiting for the Court to list I DAC
the case for hearing, which is likely to be in
November 2013.
POL has tried to engage the SPM _in
Beachcrofts
Significant Litigation Report
Susan Crichton
11 July 2013
Page 1 of 4
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process was flawed and infringed his Human I settlement discussions, and continues to
Rights. He has asked the court to review I explore options for resolving the claim before
POL’s decision and find that it was unlawful I any Court hearing.
and/or an abuse of power.
POL is asking the Court to dismiss the claim
on the grounds that it is a commercial matter
which the Court cannot review, and in any
event POL did not breach the SPM’s rights.
Significant Litigation Report Susan Crichton Page 2 of 4
11 July 2013
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PART (B) — PRINCIPAL CRIMINAL CASES BROUGHT BY POST OFFICE LIMITED
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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.
Both defendants pleaded guilty, and were sentenced to 5 months and 6 months
imprisonment (suspended for 12 months) respectively. Civil recovery of the
outstanding debt is being considered.
Sub postmaster accused of theft of £78,660.63.
Defendant pleaded guilty on 05/02/13 and was sentenced to 2 years imprisonment.
We are currently awaiting a date for the hearing of the Proceeds of Crime Act
confiscation proceedings.
Sub postmasters accused of theft of £85,000.
Crown Court trial fixed for 18/14/13.
Subpostmaster accused of theft of £77,905.02.
The case has been committed to the Crown Court. There will be a hearing on
12/07/13 to determine the details of trial.
POL has recovered £62,992.78 to date.
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 to be fixed.
POL has recovered £43,988.03 to date.
Subpostmaster accused of two offences of theft of £9,999.43 and
£175,260, and two offences of false accounting.
The case has been committed to the Crown Court. There will be a hearing on
25/07/13 to determine the details of trial. A restraint order has been obtained to
assist recovery of the financial loss.
Subpostmaster accused of fraud of £115,172.11.
Defendant pleaded guilty and on 03/05/13 was sentenced to 16 months
imprisonment. A timetable has been set for confiscation proceedings to determine
the sum payable to POL, with a final hearing set for 20/09/13.
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11 July 2013
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POL has recovered £61,000 to date.
There will be a hearing to determine the details of trial at a date to be fixed. The
Defendant has stated he intends to repay loss in full if no Proceeds of Crime Act
Subpostmaster accused of theft of £197,107.36. proceeding are commenced.
Subpostmaster accused of theft of £115,000. POL has recovered £60,000. A timetable for Proceeds of Crime Act proceedings has
been set with a review hearing fixed for 23/08/13.
Subpostmaster accused of theft of £186,000. Further enquiry undertaken by the investigation team
Significant Litigation Report Susan Crichton Page 4 of 4
11 July 2013
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