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THE POST OFFICE GROUP LITIGATION
IN THE HIGH COURT OF JUSTICE Claim Nos HO16X01238, HQ17X02637
QUEEN'S BENCH DIVISION & HQ17X04248
BEFORE THE HONOURABLE MR. JUSTICE FRASER
BETWEEN:
ALAN BATES & OTHERS
Claimants
- AND -
POST OFFICE LIMITED
Defendant
THIRD CMC ORDER
UPON the making of an order following a Case Management Conference on 19 October
2017 (the “First CMC Order”)
AND UPON the making of an order following a Case Management Conference on 2
February 2018 (the "Second CMC Order"), adjourned for further hearing on 22 February
2018
AND UPON HEARING Leading Counsel for the Claimants and Leading Counsel for
the Defendant at the adjourned Case Management Conference held on 22 February 2018
IT IS ORDERED THAT:
Disclosure for Common Issues Trial - Stage 2
Stage 2 Disclosure
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1. Pursuant to paragraph 10(a) of the Second CMC Order, the agreed list of
custodians is at Schedule 1 to this order.
2. Pursuant to paragraph 10(b) of the Second CMC Order:
(a) _ the classes of documents to be disclosed and the generic issues to which
those classes relate, are those set out at Schedule 2 to this order; and
(b) for the purposes of the categories of document in Schedule 2 to this order in
which date ranges, or the definition of document type, remain to be inserted
(in either case, only where identified therein), the parties shall seek to agree
those date ranges and definition of document type by 4pm on 12 March 2018,
in default of which those date ranges and definition of document type shall
be the subject of a further order.
3. By 4pm on 30 March 2018, the Defendant shall produce, and serve upon the
Claimants, a document setting out the top four layers of hierarchy of management
positions within the Defendant's organisation at the present time and, so far as is
practicable, over time since the allegations forming the subject matter of these
proceedings.
Horizon Issues Trial
Horizon Issues and further hearing
4. By 4pm on 12 March 2018, Leading Counsel representing each of the parties shall
meet and seek to agree the issues (‘the Horizon Issues") to be determined at the
trial referred to in paragraph 34 of the First CMC Order (“the Horizon Issues
Trial”).
5. A further hearing shall take place on 26 March 2018, at a time to be appointed, for
the purposes of determining, in the event that they are not agreed by that date:
(a) _ the list of Horizon Issues; and/or
(b) the date ranges and definition of document type referred to in paragraph
2,
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2(b) above.
Stage 3 Disclosure: Horizon Issues Trial ~ initial
6.
By 16 March 2018, the Defendant shall: -
(a) _ provide an introductory demonstration to both parties’ IT experts of:
i. How to operate the Horizon system from the point of view of a
Subpostmaster;
ii. Whether the Horizon system enables the Defendant to identify apparent
or alleged shortfalls (including any receipts/payment mismatches) and
process Transaction Corrections;
iii. How the Defendant (whether itself or by Fujitsu) is able to edit branch
transaction data remotely; and
(b) _ use its reasonable endeavours to arrange an introductory briefing by Fujitsu
for both sides' IT experts on the architecture of the Horizon system.
By 4pm on 30 March 2018, the Claimants shall submit requests for disclosure of up
to 100 technical documents from Fujitsu's ‘Dimensions’ system based on the index
of documents already provided to the Claimants' solicitors.
By 4pm on 13 April 2018, the Defendant shall (a) disclose any documents requested
pursuant to paragraph 7 above within its possession or control, and (b) use its
reasonable endeavours to have Fujitsu disclose any such requested documents.
which are in Fujitsu’s possession or control (rather than that of the Defendant).
Disclosure to be given in accordance with paragraph 8 above is without prejudice
to the Defendant's obligation to provide Stage 2 disclosure pursuant to paragraph
10(b) of the Second CMC Order of the categories of documents referred to in
paragraph 2(a) above.
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10.
By 18 May 2018, the Defendant shall use its best endeavours to prepare a
document, from the information available to the Defendant, setting out the
aggregate volume and value of Transaction Corrections issued annually since
1999,
Further agreement and CMC
i.
12.
By 19 April 2018, the parties' solicitors and IT experts shall meet and attempt to
agree:
(a) the scope of any further information or documents required about the
Horizon system; and
(b) a process for inspecting the Horizon system (if needed).
There shall be a further CMC on 20 April 2018 to consider any further directions
needed for the Horizon Issues trial.
IT Experts
13.
14.
15.
16.
The parties and their IT experts are reminded that experts have a right, pursuant
to CPR 1.35.14, to file written requests to the Court for directions for the purpose
of assisting them in carrying out their functions.
By 22 June 2018, the parties’ IT experts are to commence their meetings and
discussions pursuant to CPR 1.35.12, for the purposes of both CPR r.35.12(1)(a)
(identifying and discussing issues) and r.35.12(1)(b) (where possible, reaching
agreed opinions on those issues). Those discussions shall continue as necessary.
By 4pm on 18 July 2018, the Claimants shall serve a provisional / outline document
setting out the nature of their allegations in relation to the Horizon Issues.
By 4pm on 31 August 2018, the parties’ IT experts shall produce a first joint
statement pursuant to CPR r.35.12(3), identifying the issues:
(a) upon which they agree; and
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17.
18.
(b) upon which they disagree, together with a summary of their reasons for
disagreeing.
The Claimants shall serve their IT expert report(s) by 4pm on 14 September 2018.
The Defendant shall serve its IT expert report(s) by 4pm on 2 November 2018.
Supplemental reports following judgment in the Common Issues Trial
19.
20.
By 4pm on 18 January 2019, the parties shall exchange any supplemental IT expert
report(s) upon which they wish to rely.
By 4pm on 20 February 2019, the parties’ IT experts shall produce a second joint
statement pursuant to CPR r.35.12(3), identifying the issues:
(c) upon which they agree; and
(d) upon which they disagree, together with a summary of their reasons for
disagreeing.
Pre-trial review
21. There shall be a Pre-Trial Review listed for 22 February 2019, time estimate 1 hour.
General
22. Defined terms in previous orders shall have the same meaning in this Order, save
as set out expressly herein.
23. — Inrelation to any CMC in this Order:
(a) The parties shall inform the Managing Judge 7 days before any CMC
whether or not the CMC is required.
(b) Paragraphs 35, 36 and 38 of the First CMC Order shall apply.
24. The parties shall have liberty to apply in respect of any provision in this Order.
25. The costs of this CMC shall be Common Costs in the case.
5
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Dated this February 2018
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SCHEDULE 1
Custodians for Stage 2 Part 1 Disclosure
The email accounts of the following custodians shall be extracted and searched by the
Defendant as part of Stage 2 Part 1 Disclosure.
WP OENATPEPONYE
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
22.
23.
24.
25.
26.
Alan Lusher
Alison Bolsover
Andrew Winn
Angela Van Den Bogerd
Bryan Flynn
Brian Trotter
Carol Ballan
Craig Knowles
Craig Winks
Dave Barrett
Dave Mellody
David Hazell
David Longbottom
David Southall
Debbie Hall
Faith Lavender
Frances Taylor
Gerry Hayes
Glenn Chester
Graham Padget
Idris Jones
Jon Longman
Judy Balderson
Junaid Tanveer
Karen Averiss
Karen Derbe
27.
28.
29.
30.
31.
32.
33:
34.
35:
36.
37.
38.
39.
40.
41.
42.
43.
44,
45.
46.
47.
48.
49.
50.
51,
Keith Skelton
Ki Barnes
Lesley Frost
Lynn Hobbs
Margaret Guthrie
Mark Dinsdale
Mark Sealey
Mark Wright
Mike Wakley
Mike Wiatrowicz
Neil Donohue
Nigel Allen
Paul Holland
Paul Williams
Peter Johnson
Rajinder Gihir
Rebecca Goddard
Richard Barker
Robert Sinclair
Ruth Hazell
Simon Drinkwater
Sue Muddeman
Tony Biolchi
Wendy Grant
Yvonne Cere
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The above list of custodians shall be reviewed by the parties if the volume of data in any email
account is disproportionately large. In this event, the parties shall seek to agree whether the
affected custodian(s) should remain within this stage of disclosure and/or whether alternative
search methods could be used.
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SCHEDULE 2
Model C Extended Disclosure
pursuant to paragraph 10(b) of the Order of the Court dated 2 February 2018 and Part 2 of Schedule 2 thereto
The disclosure in this part shall be given in accordance with Model C of the draft Practice Direction referred to in the Second CMC Order. A
reasonable and proportionate search is to be undertaken for the classes of document set out below. For the avoidance of doubt, they shall
comply with the Core Duty at paragraph 3.1(2) of the draft PD.
ISSUE FOR PLEADING CLASS OF DOCUMENT (MODEL C)
DISCLOSURE REF
(Info only)
Products and services GPOC 4-5, 15 1. Indexes, organisational charts, schedules or diagrams of the suite of products and services offered
offered by Post Office. CDef 24-25 by Post Office since 1999
Reply 20 2. Written policies and process documents relating to the rolling out of products and services to
Pl postmasters since 1999.
Post Office's standard GPOC 8-10 3. Suite of standard contractual documents used by PO when appointing postmasters, since 1999.
contract terms GDef 28-31 4. Suite of product or service-specific contracts between Post Office and postmasters and guidelines,
referred to in the reports of Second Sight.
5. Contractual variations issued to the branch network since 1999.
6. Written policies and process documents relating to the process of varying a postmaster's contract.
7. Standard and template documents, letters, notes and memos issued to postmasters relating to the
variance of their contracts.
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ISSUE FOR PLEADING CLASS OF DOCUMENT (MODEL C)
DISCLOSURE REF
(Info only)
Appointment GPOC 42 - 46 8. Written policies and process documents relating to:
of postmasters GDef 78 - 82 a. the advertising for vacancies (permanent and temporary)
b. the postmaster application processes
c. the on-boarding process (including the provision of contracts)
d. checks on postmasters prior to appointment
e. upfront payments made by postmaster to Post Office; and
f, deductions from postmasters’ remuneration upon a postmaster joining Post Office
9, Standard and template documents, letters, notes and memo issued to postmasters before or shortly
after appointment as a postmaster.
Operation of Horizon GPOC 12-17, 10. Technical documents regarding Horizon stored by Fujitsu in its Dimensions systems (subject to
22-24, 25-28 Post Office using its best endeavours to give disclosure of those documents that are under Fujitsu's
GDef 33-38, control).
57-60 11. Known Error Log (subject to a suitable means of inspection being agreed).
Reply 9, 36, 41 12. Branch Operating Manual (including previous versions or equivalent historic document).
13. Operating instructions and rules issued to all postmasters.
14. Minutes of meetings of Post Office's Board of Directors (or historic equivalent) (a) between 1999 and
2001 at which the roll-out of Horizon, its operation and any associated operational risks were
considered or discussed, and (b) between 2010 and 2011 at which the same was considered or
discussed with respect to Horizon Online, limited in each case to matters associated with financial
reconciliations, shortfalls, discrepancies or losses.
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ISSUE FOR PLEADING CLASS OF DOCUMENT (MODEL C)
DISCLOSURE REF
(Info only)
Fujitsu GPOC 20-21 15. Contract between Post Office and Fujitsu (ICL) for Horizon and all written contractual variations to
GDef 47 - 50 "
Reply 9.6(e), 44
and 45
Information GPOC 14.2 and 16. Technical documents regarding Horizon stored by Fujitsu in its Dimensions systems (subject to
available to 19.3 Post Office using its best endeavours to give disclosure of those documents that are under Fujitsu's
Postmasters GDef 35, 76(6), control)
regaraing 92-93 17. Branch Operating Manual (including previous versions or equivalent historic document).
transactions
Reply 11, 14.2- I 18. Any written policies or process documents regarding the completion of branch accounts in the
14.4, 15, 16.1 period immediately before Horizon was introduced.
19. Any guidance notes or written advice issued to postmasters on accessing transaction information
through Horizon.
Information GPOC 55 20. Written policy and process documents [DATE RANGE to be agreed pursuant to paragraph 2(b) to this
awallavle to GDef 76(4)-(6), Order] relating to:
os vs we 92-93 a. The ability of Post Office (whether itself or by Fujitsu) remotely to detect the occurrence of
regaraing Reply 46, 47 potential shortfalls or other branch account discrepancies, when the same occurred and
aenememeed Ply *®, whether those discrepancies were caused by bugs, errors and/or defects in the Horizon system;
b. the ability of Post Office and/or Fujitsu to conduct transactions, (by entering, deleting or
otherwise altering the same) in postmasters’ branches remotely;
c. Balancing Transactions.
21. Any written policies or process documents regarding the recovery of shortfalls from postmasters.
22. Reports to Post Office’s Board of Directors (or historic equivalent) between [DATE RANGE to be
10
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ISSUE FOR PLEADING CLASS OF DOCUMENT (MODEL C)
DISCLOSURE REF
(Info only)
agreed pursuant to paragraph 2(b) to this Order] relating to Post Office’s network-wide approach to
identifying, tracking or managing discrepancies, shortfalls or losses, or to Postmasters’ ability to
dispute shortfalls.
Transaction Corrections GPOC 18 23. Branch Operating Manual (including previous versions or equivalent historic document).
GDef 39 - 41 24. Operating instructions and rules issued to postmasters in relation to Transaction Corrections.
Reply 21, 32 25. Post Office written policies, process documents, and formal internal guidance documents (not
emails) regarding the issuing of Transaction Corrections.
Declaring, Making GPOC 19.1- 26. Branch Operating Manual (including previous versions or equivalent historic document).
soot oe Disputing bs 27, Guidance notes issued to postmasters on how to complete overnight cash declarations and Branch
ora GDef 44 - 46 Trading Statements.
Reply 9.3, 22 28. Guidance notes issued to postmasters on how to make good, settle centrally and dispute shortfalls,
29.
30.
including, but not limited to, outside of the 42 / 60-day period.
Written policies regarding postmasters making good and settling, centrally shortfalls.
Written policies or process documents regarding the reports which could be run, or steps taken by
postmasters to investigate shortfalls.
11
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ISSUE FOR PLEADING CLASS OF DOCUMENT (MODEL C)
DISCLOSURE REF
(Info only)
Training GDef 17, 61(2), 31. Written policies and process documents relating to the provision of training when a new
(4), 6) postmaster joins Post Office, from 1999.
Reply 42 - 43 32. Written policies on when further training is offered due to the introduction of new products and
services.
33. [DOCUMENT TYPE to be agreed pursuant to paragraph 2(b) of this Order] (not emails) issued to Post
Office trainers on how to train a postmaster to deal with and dispute a shortfall.
34, Training materials and other standard / template documents used for new postmasters.
35. Written policies or process documents relating to ongoing training which is provided due to the
needs of postmasters or the introduction of new practices, systems or services.
Helpline GPOC 29 - 30, 36. NBSC Knowledge Base (subject to a suitable method of inspection being agreed).
or 88 37, Formal notices issued to postmasters regarding the operating hours of helplines.
GDef 61 - 62
Reply 18 - 19
Investigations GPOC 31 38. Written policies and procedures regarding the investigation of shortfalls in branches (excluding
CDef 63 - 64 investigations into suspected criminal misconduct).
Reply 23 - 24 39. Written policies and procedures for initiating and progressing audits.
40. Instructions or guidance (excluding emails) given to auditors on dealing with discrepancies,
shortfalls and losses identified or suspected in branch.
12
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ISSUE FOR PLEADING CLASS OF DOCUMENT (MODEL C)
DISCLOSURE REF
(Info only)
Termination GPOC 32 - 33 41. Written policies and process documents relating to:
GDef 65 - 66 a. the suspension of postmasters; and
b. the termination of postmaster's contracts (and any connected appeals process).
Suspense Accounts GPOC 38 - 39 42. Written policies and process documents in relation to the operation by Post Office of any "suspense"
CDef 73-74 account associated with branch accounting, including, specifically, the account or accounts in which
unattributed surpluses generated from branch accounts (such as, for example, perceived
Reply 29 -33 overpayments by banks in respect of particular transactions) were placed and, after a period of 3
years, credited to Defendant's profits and reflected in its profit and loss accounts.
Assistants GPOC 43, 56 43. Written policies and process documents relating to the appointment and registration of assistants.
and 76 44, Training materials provided to postmasters for the training of assistants.
GDef 79, 95 and
116
Notes:
1. Some classes of document are relevant to more than one Issue for Disclosure and are repeated above, but for the avoidance of doubt they only need
to be disclosed once.
2. Where reference is made to a document being issued to postmasters, this means a document issued to postmasters (or subpostmasters) in
general and not a specific document issued to a particular postmaster.
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