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Stephen Dilley
From: Stephen Dilley
Sent: 08 September 2006 17:06
To: .
Subject: Strategy update: Post Office -v- Castleton
Attachments: eCopy scanned document.pdf
Dear Mandy,
Just to update you following our telecon this morning:
I have since spoken to Mark Turner of Rowe Cohen Solicitors. We discussed the following
points :-
1. Ireferred him to his letter dated 25 July 2006 (further copy attached). In that letter he
said that the figure of cash and stock carried over from Week 41 was £92,374.74. He had the
cash accounts for Weeks 41 and 42 in front of him and I showed him that the figure actually
carried forward from Week 41 was actually £54,170.02. I said that Mr Castleton appeared to
be mixing up his figures and therefore queried the validity of his analysis. He will take my
comments back to Castleton.
2. I told him that our proposed accountancy expert would cost £62,000 plus VAT. This was to
do a very thorough analysis of looking at the cash accounts before, during and after the time in
question. That did not surprise him and he thinks their expert may ultimately cost a similar
sum. He acknowledged that the costs were disproportionate to the amount at stake.
3. I explained to him that I had for the past few months been meeting various
witnesses and the common theme that came out was not just that they were confident with the
Horizon System but they were very confident with it. In particular I explained to him that I
had vigorously queried Fujitsu on every single I.T issue raised in the Part 20 Reply and that
Fujitsu has said was that irrespective of whether Mr Castleton was experiencing any computer
problems, it wouldn’t causes the losses. In view of this, we anticipate that our expert will
support what our witnesses are saying.
4, We spoke on a without prejudice basis about ADR after experts’ reports are exchanged,
given that they are going to be persuasive. I said that we would look to Mr Castleton for the
cost of our experts if he wanted to go to ADR after exchange. Although the parties may be
more informed after exchange of experts’ reports, I pointed out that Mr Castleton might find it
difficult to find the funds to pay our experts costs.
5. He has already advised Mr Castleton to disclose their expert’s analysis (once completed) just
for week 42 to us on a without prejudice basis, to see whether that could perhaps generate
settlement. (I am not sure how practical or helpful looking at just one week in isolation would
be).
6. I suggested to him the following :-
(a) We agree a new date for Witness Statement exchange - at the earliest to be in the week
commencing 25 September, but probably later because I do not yet know when Ruth Simpson
will be available for interview (given her ill health). We also agree amending the statements of
case. He has no objection in principle to these points but is awaiting instructions.
(b) We do not yet really understand exactly what it is Castleton is alleging about the I.T
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system. Accordingly, Mr Castleton should provide us with his expert's report on a without
prejudice basis. We look at that and instruct our expert to do a summary response on the
points they raise, which will hopefully not cost as much as be £62,000. If the experts come
down on our side, the reduced cost would have an obvious benefit to Mr Castleton when we
come to ADR.
(c) We then have ADR.
(d) We vacate the Trial date.
Mr Turner could entirely see the sense of what I was saying, but he will need to take
instructions from his client and then he will come back to me.
7. Finally, I said to him that it was interesting that the only thing that was changed in the
branch was the personnel and that the losses then stopped. Mr Castleton thought there was a
software update on or around 24 March 2004 (the date after Castleton's suspension) that took
several hours and Mr Castleton was probably going to contend that that effectively fixed any
problems that had been occurring with his computer. (How convenient!) I said that I had
disclosed a list of all the software updates to him and I couldn't from memory remember that
there had been a software update on 24 March. Clearly this is something that we can have
Fujitsu and/or an I.T expert look at if and when necessary.
I will update you when I hear from Castleton's solicitors further but expect it will not be until
next week.
Kind regards.
Stephen Dilley
Solicitor
for and on behalf of Bond Pearce LLP
08/09/2006