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Post Office Horizon Shortfall Scheme
GRO.
Our reference: 001430_Tax Direct (UK) Limited
Mr Paul Marshall
2-3 Gray's Inn Square
Gray's Inn
London
WC1R 5JH
27 August 2024
Horizon Shortfall Scheme: Update
Dear Mr Marshall,
Thank you for your patience while Post Office has been carefully considering your
previous correspondence.
We acknowledge the disappointment Mrs Jayakanthan must feel regarding the letter we
sent on 30 November 2023, concerning the outcome of the application to the Horizon
Shortfall Scheme (the “HSS”) made in relation to Tax Direct (UK) Ltd (now dissolved)
("TDUK") ("Outcome Letter"), confirming the decision that Post Office reached based on
the recommendations of the Independent Advisor Panel (the "Panel"). This is not a
decision that has been made lightly in all of the circumstances.
In your correspondence you raise a number of important points in relation to Mrs
Jayakanthan's very sad case. Post Office is continuing its careful review and
consideration of the issues you have raised and proposed to engage substantively and
in good faith with these during the process outlined below.
The Horizon Shortfall Scheme (the “HSS”)
As explained in the Outcome Letter, Post Office made no offer in relation to the
application based on the Panel's view that on the current information that is available,
the balance of probability was against the shortfalls identified around the time of the 4
March 2005 audit (the "Audit") being presumed to have been Horizon Shortfalls. We
refer you to the summary of the Panel's reasons set out in the Outcome Letter and do
not repeat the matters therein.
Understandably, Mrs Jayakanthan has disputed this outcome.
It is apparent that the threshold issue in this case is how the shortfalls identified during
the Audit arose in the first place. As it currently stands, the only document that Post
Office is able to find that is relevant to the issue is the Investigation Report listed at
Annex 1 of the Outcome Letter. The matters set out in the Investigation Report point
to the shortfalls, which was a shortage between the physical cash in the ATM machine
and printouts from the ATM machine, not being related to the Horizon s ystem.
In the case of shortfalls relating to ATMs, these can only be dealt with through the HSS
in circumstances where the underlying root cause of the shortfall was Horizon (either
demonstrated by the evidence available or where that is presumed to be the case in the
absence of evidence to the contrary). The purpose of the HSS is to resolve issues with
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current and former postmasters who believe they may have been affected by shortfalls
relating to previous versions of Horizon (as set out in the HSS's Terms of Reference).
As with any remediation scheme there must be a remit of the scheme and therefore
necessarily limitations to what the scheme can address and redress. In the case of the
HSS, while the Panel can address Horizon Shortfalls and losses consequential upon the
same suffered by former and current postmasters, it cannot consider or address any
other losses a postmaster or any other individual may wish to claim. While it would not
be appropriate to go into the detail with you of offers made to other applicants, we
confirm that where ATM shortfalls have been raised and an Offer has been made, this
is in light of it being determined that those particular shortfalls were in fact "Horizon
Shortfalls" (as defined by the HSS's Terms of Reference). Each case is considered on its
own facts and therefore it is not possible to simply say any time an issue is raised
relating to ATMs that it must be, or must not be, a Horizon Shortfall.
What would ultimately assist in these circumstances is if further information could be
provided regarding the provenance of the Audit shortfalls. We understand from the
available information that your client was not involved in the running of the Putney
branch and that was entirely left with Mr Jayakanthan. Nevertheless, if Mrs Jayakanthan
feels that she, or any others (such as family members) who were involved in the
operations of the Putney branch or recall hearing relevant information from others who
were, could provide further information to help explain what happened around the time
of the Audit, including how the shortfall arose, Post Office would welcome such
information.
If such information is not available, what would assist is a fullsome explanation of the
claim under the Fatal Accidents Act, and the evidence supporting the same.
For the avoidance of doubt, while Tax Direct (UK) Ltd having been dissolved while
insolvent plainly creates additional complexity, Post Office's is not taking the position
that this is an automatic bar on redress. It is a complexity which would need to be
addressed in any offer and settlement and in our view could be resolved appropriately.
However, as above, the pertinent point at this stage is to understand the details of the
claim being made.
We reiterate again that we do not take the issues that this case raises, or our current
decision based on the known information, lightly. Any new information that you are able
to provide that can help us, and as appropriate the Panel, better understand what
happened during the Audit and/or any claim under the Fatal Accidents Act will be
welcome and considered in good faith. We set out below an overview of the procedure
for provision and consideration of such information.
The HSS's Dispute Resolution Procedure
As you know, the HSS has a Dispute Resolution Procedure ("DRP") which can be
engaged where the outcome of an application is disputed. We refer you and your client
to the HSS website and the Terms of Reference for further details regarding that
procedure.
Please let us know if your client would like to engage with that process and whether it
would be helpful to set up a Good Faith Meeting to discuss this case and what further
information you are able to provide. It may be that following this process, further
information can be provided to the Panel for consideration, particularly on the threshold
issue of the cause of the shortfalls.
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Alternatively, Post Office is open to agreeing to bypass the Good Faith Meeting and
proceeding straight to a mediation if that is your client's preference. The terms of such
mediation would be as set out in the Terms of Reference. All mediation costs are borne
by Post Office.
Given the additional complexity, explained in your letter, that Tax Direct Limited entered
insolvent liquidation, if you and your client think it would be helpful for the liquidators
to join either of those meetings, we would be open to that. While deferring to your
client's preference on preferred next steps, as is hopefully clear from the above, our
objective is to seek to utilise the Horizon Shortfall Scheme's DRT process to try and
constructively explore whether it is possible to reach a settlement. This would include a
claim relating to Horizon Shortfalls and, if distinct, any claim under the Fatal Accidents
Act.
Further points
We fully appreciate that you, and your client, also have other wider questions and
concerns around Post Office's conduct not directly related to this case. We think it would
be most constructive to pick those up separately, to allow us in this context to focus on
what further information there may be which supports the claim and would support a
revised outcome. Please let us know your client's preference for next steps.
Interim payment
Finally, we note your request for an interim payment. We acknowledge and are
extremely sympathetic to your client's current circumstances. While we would be open
to considering an interim payment for the reasons set out in your correspondence, we
can only do so with a clearer understanding of your client's claim. With that in mind, we
propose progressing promptly with the procedure outlined above, in order that we can
reach a position as soon as possible to consider whether to offer an interim payment
and assist your client as quickly and as best we reasonable can.
We look forward to hearing from you in relation to the above, and please do get in
contact with us if you feel you need further information before a full response can be
provided.
Yours sincerely,
Simon Recaldin
Director - Horizon Sh:
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