POL00085749 - Claims against subpostmasters (spmr’s) who have raised Horizon issues in the past - key benefits and risks

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Claims against subpostmasters (spmr’s) who have raised Horizon

issues in the past - key benefits and risks

The Former Agent Debt Team is considering whether to start (or re-start)
actions against spmr’s which had been put on hold because of concerns
about the allegations made about Horizon by the relevant spmr. This note
summarises the key risks and benefits of doing do (aside from the obvious
benefit of recovering sums due).

Benefits

Risks

Emily

This would demonstrate POL’s confidence in Horizon and its other
systems and processes and send a strong message to the spmr
community.

Where the spmr has sent a letter before action via Shoosmiths, this
would put POL on the front foot in that it would be actively pursuing the
debt rather than leaving it to the spmr to start Court proceedings and
counterclaiming for the debt.

POL would have some control over the Court in which the claims were
issued (see below).

If POL is pursuing claims in several County Courts, there is a risk that
POL could lose some, as the quality of judges is variable. POL could
mitigate this by issuing its first claim in a good County Court (such as
London, Birmingham or Manchester) and arguing that the other claims
should be heard in the same Court as it would be familiar with the
issues. This would not be guaranteed to succeed, however.

POL could be accused of acting prematurely (and potentially penalised
on costs) if it were to start Court proceedings against Darlington and
Walters whilst the “pre-action” dialogue with Shoosmiths was ongoing.
Arguably, bringing more claims increases the risk of systemic
problems coming to light (such as training or support failures).
However there is little that can be done to minimise the risk, apart from
analysing the claims carefully at the outset, and bringing them in
batches, with the strongest first, as suggested.

There will be quite a lot of work to do to prepare each case as
described above and in my email of 20 December 2011, and to work
with the solicitors as they progress the claims. Therefore this may
place some strain on the FADT and POL legal resources.

Springford, Royal Mail Legal Services

Dispute Resolution
20 December 2011

POL00085749
POL00085749