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1.2
1.3
2.2
POL00147680
POL00147680
Strictly confidential and privileged
Draft for comment 10 March 2014
The Post Office Limited
Initial Complaint Review and Mediation Scheme
Proposed outline of report for the Board
Background to the report
The report is being commissioned by the Board of Post Office following concerns over the
level of claims and costs and other potential legal and financial exposure for Post Office in
connection with the Initial Complaint Review and Mediation Scheme (the “Scheme’).
We understand that the Scheme was set up in August last year with a view to bringing
closure to the various allegations that had been brought about the Horizon system
(“Horizon”); at that time the working assumption was that there were:
1.2.1 No systemic problems with Horizon;
1.2.2 the training and support for SPMRs with respect to Horizon could be improved
upon in certain areas;
It is intended that the report will be presented to the Board on 26 March 2014.
Key matters to be addressed
The report will consider:
2.1.1. Whether and to what extent Post Office has any legal liability with respect to (a)
complaints made by applicants to the Scheme [and (b) any other matters identified
as part of the investigatory work carried out by Post Office in the process of
responding to applicants.]
2.4.2 The nature and extent of the risks arising from and associated with the Scheme in
its current form.
2.1.3. Whether and to what extent the Scheme, as currently structured, can be sensibly
modified in order to improve the efficiency and effectiveness of its operation, and
mitigate any of the risks identified in the above.
2.1.4 The nature of any dispute resolution (or similar) mechanisms that could be
established either in order to replace the Scheme or augment its operation. In
particular mechanisms considered will include adjudication, arbitration and the use
of ombudsman services.
2.1.5 In the event that a decision is made by the Board to discontinue the Scheme what
steps Post Office could take to minimise any existing legal exposure
In addressing the above we will have regard to administrative convenience, cost,
complexity, relative merits and viability of the alternative structures.
Policy Factors
DRAFT FOR DISCUSSION 10 Mar 2014
POL00147680
POL00147680
Strictly confidential and privileged
Draft for comment 10 March 2014
3.1 It is expected that as part of the Board’s decision making process it will have
regard to the following factors:
3.44
3.1.2
3.1.3
3.1.4
3.45
Does Post Office wish to consider paying compensation by reference to principles
other than legal entitlement? If so, how will it articulate and apply those principles?
What will it say to Subpostmasters and stakeholders?
Whether or not the Post Office now wishes to conduct a fullscale audit of Horizon
system to establish, with finality, that it functions as it should.
How important is it to Post Office to determine the facts of each individual claim? In
any claim is Post Office’s stance to be more conciliatory than adversarial? What
are the limits of this approach?
To what extent does Post Office need to invest in resolving past issues to enable
it to put relationships with Subpostmasters now on a sound footing?
How and to what extent will Post Office wish to strike a balance between the
matters above and achieving a satisfactory political outcome, including with regard
to what has been said in Parliament about the Scheme and Horizon?
4 The basis on which the report has been prepared
41 The report will consider the issues primarily from the perspective of the general law, but we
will highlight where we think appropriate, associated public relations issues and/or political
implications which might arise.
4.2 The report will not consider certain matters which are expressly “out of scope”. These
currently include P! and D&O insurance, which is understood to be the subject of a
separate report to the Board..
DRAFT FOR DISCUSSION 10 Mar 2014