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From:
Sent: Wed 04/12/2019 10:29:45 PM (UTC)
To: Watson, Richard - UKGI{_
Ce:
Subject: FW: GLO - Mediation and General Update - DO NOT FO!
REFERENCED - LEGALLY PRIVILEGED AND CONFIDENTIAL
Attachment: 2019-12-04 - PO Settlement Agreement - Draft.DOCX
Hi Richard
I have sent Tom Cooper an email updating him on the mediation and other matters earlier this evening. Below sets
out our update in respect of the mediation. We suggest a call with Tom and yourself tomorrow to take you through
the details.
Mediation Update- Settlement Deed
As indicated in my previous email, the parties have focused on the non-financial aspects of the settlement over the
last two days. Attached is the draft settlement agreement which is still a work in progress. Broadly, the non-financial
aspects of the settlement include:
© Agreed joint statement by the parties which recognises the past experience of the claimants and our desire
to learn the lessons and improve our relationship with postmasters as well as noting that the parties have
engaged with each other in good faith in this mediation process
* POL’s approach in respect of the convicted claimants and its undertaking to comply with its ongoing duties.
This points out that although the proceedings are comprehensively settled Post Office has not made any
payment to or of the benefit of the convicted claimant. Post Office undertakes to take advise from a leading
criminal barrister and as a minimum to act upon and follow the legal advice it receives in respect of what
position it should take if a convicted claimant obtains permission to appeal. If the convicted claimant’s
conviction was overturned as a result of the breaches by Post Office of which complaint is made in the action,
Post Office will issue an apology. We make it clear that there is no admission to liability or wrong doing by
virtue of this agreement.
* POL’s support in respect of claimants who wish to exit the business post settlement
* POL to withdraw proof of debt or claim in respect of insolvent claimants as part of the settlement
¢ A support programme for claimant SPM and SPM in similar position of the claimants including mental health
support for claimants
* POL to consult claimant group on the change process and for them to have some form of consultancy role
advising the business, which could include input to consideration of the future of the Post Office, but no right to
determine issues or make decisions. This gives rise to the creation of a “Idea Sharing Group” of which Post
Office would listen and consider on a quarterly basis for no less than 12 months post settlement.
© POL would also set up a historic shortfall group to deal with any shortfalls which arose between 2000 and the
effective date of the settlement deed with an internal escalation and ultimately arbitration as a resolution
forum (rather than the public court process)
© POL not the enforce SPM debts pending implementation of the settlement agreement
e Emergency funding for hardship cases which is to be taken out of the funds of the settlement and
administered by the claimant group.
© POL agrees to consider the giving of a bibliographical reference to postmasters which confirms the duration
of their tenure and there appointment as a postmaster with the confirmation that they are agents and not
employees.
* Claimants solicitors and funders not to solicit new claims
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Given the amount of detail, could I suggest that we take you and Tom through these points tomorrow over the phone.
We are bound to have some down time tomorrow in between offers.
Public Announcement — Mediation Outcome
Patrick has flagged to me that there could be a question from the shareholder as to whether it would be feasible to
have the mediation settlement subject to HMG approval. This suggestion would be very difficult for a number of
reasons:
© There would be a very high risk that it would derail the mediation process in two ways:
© The parties have embarked on a process in good faith that each side had the authority to mediate and
seek to resolve the matter on agreed terms. For Post Office to now advise on Day 6 of the mediation that
any agreement would then be subject to further approval by the HMG risks being seen as having not
operated in good faith.
O If there is a further hurdle for the Claimants to clear to achieve settlement, tactically they may wish to
not proceed to their best and final offers in the mediation because there is either a further round of
negotiation with the government or they may think they can secure a greater financial settlement from
HMG. I am not speaking to the accuracy of that assertion but the risk around that perception.
* It may not be in HMG interests to be seen publicly as making this decision.
Happy to discuss tomorrow on our proposed call.
Do let me know when is convenient time to contact Tom and yourself tomorrow (probably around lunch time is best if
that’s possible).
Kind regards
Ben
Ben Foat
Group General Counsel
Ground Floor
20 Finsbury Street
LONDON
EC2Y 9AQ
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