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G v G [1996] EWCA Civ 548 (30th July, 1996)
URL: http://www.bailii.org/ew/cases/EWCA/Civ/1996/548.html
Cite as:
[1997] 1 FLR 368,
[1996] EWCA Civ 548,
[1997] 1 FCR 441,
[1997] 1 All ER 272,
[1998] Fam 1,
[1996] Fam Law 722,
[1997] 2 WLR 614
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G v. G [1996] EWCA Civ 548 (30th July, 1996)
IN
THE SUPREME COURT OF JUDICATURE
FAFMI
96/0410/F
IN
THE COURT OF APPEAL (CIVIL DIVISION)
ON
APPEAL FROM FAMILY DIVISION
(Mr
Justice Hale)
Royal
Courts of Justice
Strand
London
WC2
Tuesday,
30th July 1996
B
e f o r e:
LORD
JUSTICE WARD
LORD
JUSTICE POTTER
-
- - - - -
G
v. G
-
- - - - -
(Computer
Aided Transcript of the Palantype Notes of
Smith
Bernal Reporting Limited, 180 Fleet Street,
London
EC4A 2HD
Tel:
0171 831 3183
Official
Shorthand Writers to the Court)
-
- - - - -
MRS
M MULLALLY and MR KEARNEY (Instructed by Barrett & Thomson, SL1 1TQ)
appeared on behalf of the Appellant
MISS
F ELDER (Instructed by Allan Janes, HP11 1NU) appeared on behalf of the
Respondent
-
- - - - -
J
U D G M E N T
(As
approved by the Court
)
-
- - - - -
Crown
Copyright
Tuesday,
30th July 1996
JUDGMENT
LORD
JUSTICE WARD: To enable periodical payments to made only for such term as
would be sufficient to allow the recipient to adjust without undue hardship to
the termination of her financial dependence on the other party is a worthy
purpose of a matrimonial law which strives to enhance self-respect and
self-sufficiency after divorce. "Look on the bright side" is an essential
rubric for the good divorce lawyer, but not at the expense of looking out for
potential lethal traps inherent in orders for a limited term of periodical
payments. This unfortunate case signposts certain pitfalls of which the
profession should make itself aware.
Even
though the marriage of the petitioner and the respondent has long been
dissolved, I shall for the sake of convenience still refer to the parties
merely as husband and wife. They married in 1968. The wife practised her
profession as a speech therapist until Jonathan was born in 1974. Camilla was
born on 14th November 1976. In 1982 the wife began part time employment as an
elocution, speech and drama teacher and, although she did see some children
with remedial problems, she was not in clinical practice. That work ceased in
1987. For his part, the husband had improved himself steadily throughout the
marriage. There were periods when he undertook training or retraining partly
sponsored by his employers but partly maintained by the wife's efforts. The
family were dislocated from time to time in the course of the husband's
employment. He was made redundant in 1987 and departed to America in December
1987 to make a new career for himself. In that he was successful. In July 1988
the wife returned to work, this time with estate agents, and she was so
employed when, on 17th October 1989, the claims for ancillary relief were
disposed of by order made by consent. The agreed arrangement effected a
deferred clean break. The material elements of it were that the wife was to
have conveyed to her the matrimonial home free of mortgage together with the
collateral insurance policies that secured the charge. He paid her a modest
lump sum of £5,000. He undertook to provide private health insurance for
the petitioner and the children. He was to pay each of the children £2,500
per annum "until such children shall attain the age of 18 years or cease full
time education whichever shall be the later or until further order." The order
for periodical payments for the petitioner was expressed in these terms:-
"The
respondent do pay or cause to be paid to the petitioner as from the 1st day of
July 1988 periodical payments at the rate of £14,000 per anum payable
monthly in advance until the petitioner shall remarry, cohabit with a man for a
period of six months or periods totalling six months, or until the child of the
family Camilla shall attain the age 18 years whichever shall be due sooner or
until further order."
The
order further provided that "claims against each other of a capital nature do
stand dismissed."
The
first pitfall to which I draw attention is whether or not it was truly
appropriate to limit the petitioner's entitlement to periodical payments for
five years, or at all. That question has not been before us but the level of
sympathy, if any, which may be felt for the wife is nonetheless shaped by its
answer. This was, very broadly, a twenty-year marriage with the wife making the
fullest contribution. At the time of the order each of the parties was 43 years
old. The wife had shown her willingness to work. I have little doubt she wished
to assert her independence. I have little doubt she was more than willing to be
financially, as well as emotionally, free of her husband. The question remains,
however, whether or not it was ever appropriate in 1989 to say with confidence
and with certainty that she could achieve the goal of independence in five
years, or at all. At the time of the order Jonathan was 15 and Camilla nearly
13. They could be expected to live full and busy lives. Many demands were yet
to be made on the time of their mother. She had not practised her profession
for 15 years. She had sacrificed it for the sake of the family. She had
probably forever been condemned to a weaker financial position than the
bread-winning husband. If it was possible to re-enter her profession, it
needed retraining, time out, and money. She could not, on her earnings as a
receptionist, maintain herself to a standard appropriate to that which had
enjoyed. She had high hopes and I dare say dogged determination to succeed. I
venture to think, however, that no one then looking into the crystal ball of
her life would confidently have predicted any certainty of achievement of those
laudable aspirations. Those agreeing and those making these term orders have a
duty pursuant to section 25(2) to consider whether the payee can adjust without
undue hardship to the termination of dependence on the payer. Events have
proved this wife is not able to do so. Whether or not that ought to have been
apparent in 1989 may be open to question but I am not in a position to answer it.
Another
pitfall relates to the drafting of the periodical payments order. Firstly, it
did not provide, as the Solicitors' Family Law Association precedents prudently
provide, for the order to stand dismissed upon the happening of the event.
Whether or not it was strictly necessary so to provide is perhaps doubtful for
reasons I shall give shortly. However, inclusion of such a term would have made
this appeal impossible to argue on the wife's behalf. Secondly, it did not
provide whether or not the parties intended section 28 (1A) to apply. That
provides:-
"Where
a periodical payments...order in favour of a party to a marriage is made on or
after the grant of a decree of divorce..., the court may direct that that party
shall not be entitled to apply under Section 31 below for an extension of the
term specified in the order."
Thorpe
J., as he then was, explained the importance of the point in
Richardson
-v- Richardson
[1994] 1 FLR 286 at 294F:-
"In
my experience it is generally understood, certainly among the specialist Bar in
London, that if the respondent has won in negotiation the exclusion of the
applicant's right to apply within the agreed term for its extension then a
Matrimonial Causes Act 1973, s. 28(1A) direction must be included in the
consent order. By contrast, if the applicant has preserved in negotiation her
right to apply for an extension, that right does not have to be expressed in
the order, it is sufficient to ensure that the s. 28(1A) direction is not
included."
As
I understand the husband's case, he was under the impression that the former
position prevailed; yet there was no section 28(1A) direction.
When
Jonathan reached 18, payments to him ceased. I understand he did not
immediately become independent. As Camilla's 18th birthday loomed, the
petitioner became anxious about her future. Her casual employment at the estate
agents had been brought to end, and she began to work for a network marketing
company selling jewellery but with little expectation of earning more than a
couple thousand pounds per annum. In May 1994 the husband put the wife on
notice that he was not prepared to support her beyond November 1994. She
apparently called upon him to continue the payments under the order. She
instructed solicitors and I do not know what, if any, advice they then gave
her. She could not afford them in any event. Camilla reached adulthood on 14th
November 1984. No more money was forthcoming from the husband. On 1st December
1994 the wife applied "to vary the maintenance paid to Camilla who is still in
full time education" and "to extend maintenance paid to myself for the time my
daughter is still in full time education or I remarry or cohabit for a period
of six months."
That
was resisted. There were affidavits, questionnaires, bundles over 1000 pages
long, interim orders and finally on 7th November 1995 a hearing before District
Judge Cushing who varied the order so that the husband was to pay the wife
£17,000 per anum from 1st November 1995 to 31st July 1996, just under
£12,000 per anum for the following year, reducing to £7,248 to 31st
July 1988 and thereafter nominal payments of 5p per anum during their joint
lives or until she should remarry, cohabit for six months or further order. The
claim for periodical payments for Camilla was dismissed.
That
order pleased neither party. The husband appealed originally only against the
imposition of the nominal order which, of course, had the intended effect of
keeping her claims alive. She wished for more generous provision to be made for
her and for it to be back dated. She wished an order for Camilla to be
maintained. Two days before the hearing fixed before the High Court Judge to
hear that appeal, the husband gave notice of his intention to seek to amend his
appeal in order to raise, for the first time, whether or not the court had any
jurisdiction to make any order in the wife's favour.
That
appeal was heard by Hale J. In her judgment of 29th February 1996 she said:-
"
The wife's application to vary the original order was made on 14th December
1994, one month after Camilla had reached her 18th birthday and, according to
the husband, his liability under the order had come to an end. This is an
extremely unattractive argument because of its apparent technicality, a
technicality which must be mystifying to a person in the wife's position who
was at the time acting in person. The technicality was not raised at any time
in the course of these proceedings, specifically not in July 1995 when the
husband agreed to an interim order or in November 1995 when District Judge
Cushing made the order under appeal. It was first raised on Monday of this
week. Further more, the wife's application was made only one month after the
previous term had expired and the wife had drawn the problem to the attention
of the husband's solicitors in August 1994. Thus he was not taken by surprise.
Counsel, on behalf of the husband [not Mr Evans Q.C. who now appears for him]
disarmingly says that he did not raise the point in the court below because he
did not think as much of it then as he does now. He confesses that he does not
consider that the position which has been reached on the authorities is right
in principle. But of course any view of the justice of the individual case or
of the merits of the existing law in policy terms cannot effect me if I am
bound by statute and authority to hold that I have no jurisdiction, and that
the District Judge had no jurisdiction to make the order under appeal."
I
agree with all of those sentiments. The learned judge duly and properly
examined the law, in particular the case of
T
-v- T (Financial Provision)
[1988] 1 FLR 480, a decision of Mrs Justice Butler-Sloss, as she then was. Hale
J, felt obliged to accede to the husband's application. She said:-
"I
therefore reach the conclusion that I cannot distinguish
T
-v- T
from this case or bring myself to disagree with it. It does seem particularly
hard on the facts of this particular case, in view of the circumstances in
which the point was raised and in view of the husband’s acknowledgement
that some extension to the order is indeed justified on the particular
circumstances of this case. One has, however, to acknowledge that hard cases
make bad law. Once applications become possible outside the time limit, it
would be impossible to distinguish which should go ahead and which should not.
The variation exercise under Section 31 is a quite different exercise from the
full financial and property settlement which is made on or after the divorce
and is governed by the principles in Section 25 of the Act. Capital provision
cannot be varied. Therefore, just as in some cases it may be unjust to take
away continuing periodical payments when this cannot be compensated for by
capital provisions, similarly it may be unjust to continue periodical payments
when one cannot take away concluded capital provision which has already been
made. I reach conclusion with considerable regret, and were any higher court to
feel that it could reach a different conclusion, I for one would bear it with
considerable fortitude."
Again
I agree with every word. However I regret that I feel unable to accept the
invitation implicit in the final sentence quoted.
Hale
J. then dealt with Camilla and said:-
"It
is fairly clear that (the District Judge) felt that in the circumstances where
the wife was to continue to have some provision for her own needs, which
provision would include the maintenance of the household, it was not
appropriate for there to be any increase in the provision for Camilla. But the
conclusion that I have reached in relation to the periodical payments for the
wife clearly alters that situation drastically."
Camilla
had begun a university course which would continue until 1999. The judge held,
rightly, that she was entitled to be maintained at a level appropriate to a
university student who was the child of someone in her parents' circumstances;
and these include just as much father's circumstances as those of her mother.
Taking into account her grant, father was paying her £3,500 directly, and
proposed to continue to do so. The judge held, and again I agree, that that was
quite insufficient to maintain her at the appropriate level given her
particular circumstances and her special medical needs. The judge found that:-
"She
needs a home, she needs the use of a car, she needs feeding during vacations
and the like. I see no reason why it should be assumed that Camilla should
support herself from obtaining employment other than the sort employment which
might contribute towards her studies, her well-being and her growing up. Such
employment would not necessarily be forthcoming and it would not necessarily
earn very much by way of an income."
The
judge then referred to the wife's very modest income as against "well over
£100,000 per year gross and at least £6,300.00 net per month" earned
by the husband. She held :-
"It
seems to me that the financial contribution which [the wife] can be expected to
make towards the maintenance of Camilla over the duration of Camilla's
university course is simply the provision of the bricks and mortar, either in
existing home or in any replacement home that could be provided; and even that
is expecting a lot because if there were no Camilla to provide for then the
wife would be able to buy herself a small flat anywhere that appealed to her
and that would release at least more capital for her to re-establish herself in
the labour market.
The
husband, certainly in income terms, is a wealthy man and could reasonably be
expected to meet his daughters financial needs throughout her university
course...[He] can be expected to contribute the whole of the reasonable
expenditure in keeping a home going for Camilla for the period of her
university course."
She
then dealt with the assessment of the claims. She said :-
"This
is an extremely difficult sum to do because it is difficult to disentangle the
various strands in the household expenditure. It is argued on behalf of the
mother that the £14,000 provided for in the original order would be the
appropriate figure for the rest of the university course. That seems to me to
be too much because at least some of that must be attributable to the
mother’s own needs, quite apart from the needs of Jonathan, who cannot be
included as yet in this equation because, although he does not have employment,
he is not in education and does not otherwise have special needs which would
justify a maintenance order for him. The husband offers, in effect,
£10,000 for 2 years of Camilla’s course and £5,000 thereafter
until she ends her university career. To mind, there is no particular logic
about a taper in this case. The case for providing a home for Camilla exists
throughout her course. On any view the wife will not be able to earn very much
during that period and on any view her contribution is made through the
continuing provision of the bricks and mortar. On the other hand, the
£10,000 would be perhaps a generous amount whereas the £5,000 would
be too little. It accepted by the husband that any sum should be backdated to
Camilla’s 18th birthday, giving of course credit for the sums which have
already been paid. For the purpose of this calculation, I leave out altogether
what is paid under the order for Camilla and the direct payments to Camilla
which the father is now making. Doing the best I can, I consider that the sums
offered by the husband are the appropriate ones to order with that degree of
backdating."
In
the result the learned judge made an order which having recorded the husband's
undertaking "to continue to pay or cause to be paid periodical payments
to..Camilla...until she shall cease full time education at the rate of
£270 per month", allowed the husband's appeal, dismissed the wife's cross
appeal in respect of her claim and made the staged periodical payments I have
already recited. She also condemned the husband to pay the wife's costs on an
indemnity basis.
Once
again there are cross appeals by the wife against the dismissal of her claim
for periodical payments and by the husband in respect of Camilla's order and in
respect of costs.
VARIATION
OF A TERM OF PERIODICAL PAYMENTS
Mrs
Mullally submits that although the happening of the event of Camilla’s
birthday ended the husband's liability to pay under the order, the order
itself, in the absence of provision for its dismissal, remained extant but in
suspense pending the making of a further order which was itself an eventuality
for which the order catered. Mr Evans Q.C. for the husband submits that if the
words "or further order" have any meaning at all, they mean only "until further
order in the mean time" and that if application for variation is not made
before the happening of the last event, being Camilla's birthday, the order
ceases to have effect and there is nothing left which is capable of being
varied.
The
statutory framework in the Matrimonial Causes Act 1973 as amended by the
Matrimonial and Family Proceedings Act 1984 is, with emphasis added by me, as
follows:-
"23.
Financial provision orders in connection with divorce proceedings , etc.
(1)
On granting a decree of divorce...the court may make any one or more of the
following orders, that is to say
(a)
An order that either party to the marriage shall make to the other such
periodical payments, for such term, as may be specified in that order.
...
(d)
An order that a person to the marriage shall make to such person as may be
specified in the order for the benefit of a child of the family, or to such
child, such periodical payments, for such term as may be specified;
(4)
The power of the court...to make an order in favour of a child of the family
shall be exercisable for time to time...
25A.
Exercise of court's powers in favour of a party to the marriage on decree of
divorce or a nullity of marriage.
(1)
Where the court decides to exercise its powers under section 23(1)(a)...it
shall be the duty of the court to consider whether it would be appropriate so
to exercise those powers that the financial obligations of each party towards
the other will be terminated as soon after the grant of the decree as the court
considers just and reasonable.
(2)
Where the court decides...to make a periodical payments...order...the court
shall in particular consider whether it would be appropriate to require those
payments to be made...only for such term as would in the opinion of the court
be sufficient to enable the party in whose favour the order is made to adjust
without undue hardship to the termination of his or her financial dependence on
the other party.
(3)
Where...an application is made...for a periodical payments...order...then, if
the court considers that no continuing obligation should be imposed on either
party to make or secure periodical payments in favour of the other, the court
may dismiss the application with a direction that the applicant shall not be
entitled to make any further application in relation to that marriage for an
order under section 23(1)(a)...above.
28.
Duration of continuing financial provision orders in favour of party to
marriage, and effect of remarriage.
(1)
Subject...to the provisions of sections 25A(2) above and 31(7) below, the term
to be specified in a periodical payments...order...shall be such term as the
court thinks fit, except that the term shall not...extend beyond the following
limits, that is to say -
(a)
In the case of a periodical payments order, the term...shall be so defined as
not to extend beyond the death of either of the parties to the marriage
or...the remarriage of the party in whose favour the order is made;...
1A...the
court may direct that the party shall not be entitled to apply under section 31
below for the extension of the term specified in the order.
31
Variation, discharge etc. of certain orders for financial relief.
(1)
Where the court has made an order to which this section applies, then,
subject to the provisions of this section and section 28(1A) above, the court
shall have power to vary or to discharge the order or to suspend any provision
thereof temporarily and to revive the operation of any provision so suspended.
2.
This section applies to the following orders that is to say -
(a)
...
(b)
any periodical payments order..."
It
is to be observed that whereas the power to make a periodical payments order in
respect of the child can be exercised from time to time, only one periodical
payments order can be made in favour of a party to the marriage. When the term
is defined by s. 28(1)(A) not to extend beyond death of either spouse or
remarriage, then the order ceases on the happening of that event and cannot be
revived. No one would contest that proposition. There would, therefore, have
to be very good reason for giving different treatment to a term specified by
the court so as, in that case, to permit the kiss of life to be given to it
after the obligations to pay under it had ceased to have effect. To give
consistent meaning to the Act, one would be constrained to find there no longer
is an order which is capable of variation. On that view of the law, that is the
end of this appeal.
A
review of the authorities leads to the same conclusion. The leading case is
Minton
-v- Minton
[1979] A.C. 593. There the periodical payments order was expressed to be "at
the rate of 5p per year until the matrimonial home is conveyed to her, such
payments to cease on completion of the conveyance." It was held that
L -v- L
[1962] P. 101 was correctly decided. There the wife had agreed to accept a lump
sum in full satisfaction of her present and future rights to maintenance and
the order provided by consent that "the petitioner's application for
maintenance be dismissed." Lord Scarman said at p. 608:-
"Had
Parliament, when re-enacting section 1 of the Act of 1958, wished to overrule
L
-v- L
,
it could have added to subsection (1) the words 'from time to time'. When
Parliament wished to make it clear that no previous dismissal of an application
or
discharge or termination of an order
could displace the court's power to make maintenance orders in favour of the
children, it added, by subsection (4) the words 'from time to time' to the
words 'at any time thereafter' which it had used in subsection (1). No plainer
indication could be given of the intention of Parliament.
For
these reasons I conclude that section 23(1) of the Act of 1973 does not empower
the court to make a second or subsequent maintenance order after the earlier
application has been dismissed. Counsel for the wife, however, submits that
present is not a case of dismissal: an order was made which included periodical
payments and a property transfer order...Thus he seeks to draw a distinction
between a dismissal and an order. I agree with him on its proper construction
the consent order in this case is more than a dismissal. It contains an express
provision for a limited period of maintenance (the nominal order until
conveyance) and a provision for the transfer of the home.
The
short answer to the point, however, is that upon the true construction of
section 23(1) the court does not have the jurisdiction. Once an application has
been dealt with upon its merits, the court has no future jurisdiction save
where there is a continuing order capable of variation or discharge under
section 31 of the Act...The court having made an order giving effect to a
comprehensive settlement of all financial and property issues as between
spouses, it would be a strange application of the principle of the clean break
if, not withstanding the order, the court could make a future order on a
subsequent application made by the wife after the husband had complied with all
his obligations...I would not deny the court power, where it thinks just, to
achieve finality as between spouses (children are a different matter) unless
compelled to do so by clear enactment. Your Lordships are under no such
compulsion; on the contrary section 23(1) is perfectly clear: it permits the
court to achieve finality, if it thinks it appropriate, practical and just."
It
should be observed that
Minton
does not narrowly refer only to cases where the claim for periodical payments
was
dismissed.
The speech ranges much wider. In fact, the order there did not stand
dismissed: it simply ceased. Lord Scarman therefore spoke of dismissal or
discharge or termination as displacing the court’s power. He referred to
finality where the husband had complied with all his obligations. Thus it
seems that a provision that on the happening of the specified event the
periodical payments order should stand dismissed, as the Solicitors’
Family Law Association recommend, is a counsel of caution rather than necessity.
Jessel
-v- Jessel
[1980] 1 FLR was a different case. There the periodical payments ran until the
petitioner should remarry "or until further order at the rate of £2,000
per anum less tax to be reduced to £1,200 less tax should the respondent
cease to be a Member of Parliament." Mrs Mullally relies heavily on a passage
in the judgment of the Master of the Rolls, Lord Denning where he says at p. 35:-
"Those
words 'or until further order' are of much importance. There are many cases to
show this. I need not go through them all. I will just mention their names. See
Hall
-v- Hall
[1915] P. 105,
Turk
-v- Turk
[1931] P. 116;
Bennett
-v- Bennett
[1934] Law Journal 38. It is plain as can be that the words 'or until further
order' keep the position alive so that an application can be made at any time
for a further order to vary the periodical payments upwards or downwards as the
situation changes in regard to them."
Browne
L.J. also said at p. 37:-
"I
entirely agree with my Lord that this not a genuinely final order, nor a once
and for all order. It provided for continuing periodical payments to continue
indefinitely unless certain events happen, one of which was until further order."
Mrs
Mullally relies upon those words as support for the submission that a further
order is itself a further event contemplated by the order until the happening
of which the order continues in effect. Mr Evans has, however, taken us to the
authorities to which Lord Denning referred. These show that the power to vary
given by s.190(2) of the Supreme Court of Judicature (Consolidation) Act 1925
was limited in that the court was able to order in addition to or instead of
the amounts ordered such sum as was reasonable, provided only that the
husband's means had either decreased or increased, but not for any other
reason. In
Bennett
v Bennett,
Sir Boyd Merriman held at p.40:-
"Consideration
of the matter, as dealt with so far in
Hall
-v- Hall
and
Turk
-v- Turk; Dufty -v- Dufty
,
have left me in no doubt whatever that it is now the practice of the court,
founded on authority, to regard the introduction of the words 'until further
order' in the original order made for maintenance as enabling the court, when
the matter comes up for review, to have regard to all the statutory factors
available for consideration in the first instance, and in my view the whole
point of the decision in
Turk
-v- Turk; Dufty -v- Dufty
,
is that where those words are inserted the court is not limited in its
jurisdiction - to withhold such review - by the proviso in section 190
subsection 2. I am not in this judgment to be taken as expressing any doubt on
what I understand to be the decision
Turk
-v- Turk; Dufty -v- Dufty
- that in order to found the jurisdiction to review where the words 'until
further order' appear in the original order it is not necessary to find that
the husband's means have diminished. Jurisdiction can be founded on any of the
statutory grounds on which the original order could be made."
If
that was the original purpose of the words 'until further order', they are now
superfluous because the purpose sought to be attained by them is plainly
achieved by the wide words of section 31 which require the court to have regard
to the whole range of circumstances of the case including any changes in any of
the matters to which the court was required to have regard under section 25.
when making the order to which the application relates.
Before
the passage of the 1984 Act, it had been established in
Dipper
-v- Dipper
[1980] 1 FLR 286 that claims could not be dismissed without consent. In that
case Ormrod L.J. at p. 298 said:-
"There
are essentially four ways of dealing with applications for periodical payments:
first to make a substantive order; secondly, to make a nominal order, the
purpose of which is to enable the party obtaining it to take advantage of the
variation section without undue difficulty; the third alternative is to adjourn
the application generally if the court does not wish to make any order at that
time; the fourth is to dismiss the application, provided the consent of the
applicant is forthcoming."
In
Thompson
-v- Thompson
[1985] 1 FLR 863 a property adjustment order was made whereby the property was
to held on trust for sale but not to be sold until a specified event 'or
further order'. It was held that the court had jurisdiction to entertain an
application for a sale before the prescribed event provided the object was to
give effect to the spirit and construction of the original order, there being
no power to vary to produce a different substantive result from that originally
contemplated. Oliver L.J., as he then was, said at p. 869 that:-
"The
words 'further order' are, in my judgment, unless there is some clear context
to the contract, to be construed as 'further order in the meantime', and the
long-hand version of the order in the instant case would postpone the sale
'until (a) the youngest child of the family...reaches the age of 17 years or
finishes further education (whichever is the later), or (b) such earlier date
as may be specified in any order made before the expiry period referred to in
(a) above."
Those
words were adopted by Butler-Sloss J., as she then was, as equally applicable
to an order for periodical payments: see
T
-v- T (Financial Provision)
[1988] 1 FLR 480. The facts of that case are on all fours with the matter
before us. There a periodical payments order had been made in favour of the
wife which was expressed to take effect "until such day as (the wife) shall
remarry or until (the husband) retires from John Lewis Partnership or further
order". After the husband had retired, the wife made an application for a
variation of the order. Butler-Sloss J. held at p. 483:-
"Since
no application was made to vary prior to the (husband's retirement), and the
order for £20 came to an end, there was no order, not even an nominal
order, upon which to hang an application to vary. In my judgment, counsel for
the wife's argument that the application was in limbo and could be revived upon
a variation application is fallacious. The original application had been
adjudicated upon, the variation application had not been made, and application
in limbo does not come within the four categories of
Dipper
-v- Dipper
(above) and is, in my judgment, unknown to family law. The court, therefore,
has no jurisdiction to entertain the variation application I agree with the
conclusions of the Senior Registrar (Mr Brian Tickle) and his reasons. The
appeal is dismissed."
Hale
J. reached the same conclusion and found herself unable to depart from
T
-v- T
.
She approached the matter in this way:-
"It
is therefore argued on behalf of the wife with some force that the plain
meaning of the words 'until further order' must be given their effect and that
plain meaning is that a further order could be made at any time. Orders do from
time to time contain otiose words so as to clarify the meaning for the parties
and for everyone else. The words do have the advantage of dispelling any
suggestion that the parties contemplated that there should be no applications
to vary, even though these could not be excluded. Against that, there would
have been nothing easier than to put in a clause based on s. 28(1A), which was
not done in this case. This means the parties must have contemplated that there
could be an application for extension of the period. But it does not follow
from that that they must have contemplated that the application could be made
at any time, even after the order had ended. Although it will not appear so to
the wife, or indeed perhaps to the husband, from the point of view of that
argument, whether it be one month or several months thereafter, makes no
difference."
She
found the conclusion particularly hard on the facts of this particular case, in
view of the circumstances in which the point was raised and in view of the
husbands acknowledgement, that some extension to the order is indeed justified
on the particular circumstances of this case. I agree and had I thought it
possible to grant the wife relief, I would have been anxious to do so. I have
concluded, however, that such a course in not open to this court. The speech of
Lord Scarman makes it clear that the order comes to an end not only when it
expressly stands dismissed but also when it "ceases" or is "discharged" or
"after the husband (has) complied with all his obligations". In those events
there is no "continuing order capable of variation or discharge under section
31 of the Act." This view accords with the statutory language. Section 23
enables an order to be made "for such term as may be specified in the order".
Section 25A(2) enables the court to require the periodical payments to be made
"only for such term" as is sufficient to enable adjustment to be made without
undue hardship to the termination of financial dependence on the other party.
Section 28 deals with "duration of continuing financial provision orders" and
provides "the term...shall be such term as the court thinks fit" subject to the
statutory limits of death or remarriage. Consistency demands that when the term
specified in the order, of whatever kind it may be, expires, the order expires
with it. The words "or further order" must be given their usual meaning and it
is not possible to construe out of those words the meaning that only the
obligation to pay comes to an end leaving the order comatose but capable of
being kissed back to life by an application to vary. As Hale J. pointed out, if
that submission was correct, then an application to vary could be made years
after the event. That it would so fly in the face of the spirit of a clean
break, even a deferred clean break, as to be unacceptable.
Practitioners
should, therefore, note that unless there is a specific direction in the order
under section 28(1A), the order can be extended beyond the term only provided
that the application is made before the term expires. Although no argument has
been addressed to us, I incline to the view that it is essential not only that
application be made but that an order be made before the expiration of the
term. There is no reason why the District Judge of the Day may not make an
interim order of nominal periodical payments to preserve the position pending
inter partes argument. Further, given the draconian effect of all relief being
lost if the term is not extended before it expires and given the real
possibility that years after the order had been made, a wife being without
legal advice might overlook the urgency of a variation application, then if it
is not a section 28(1A) case, it may be advisable specifically to provide for
nominal periodical payments to be made after the expiration of any term
provided for so as to give a peg on which to hang any late variation
application.
I
now turn to the husband's cross appeal against the order made in respect of
Camilla. The first submission is that the learned judge was wrong to require an
undertaking to be given "to continue to pay or cause to be paid periodical
payments to the child" as well as ordering periodical payments to be made to
the mother for the benefit of the child. The submission is that because the
undertaking has the same effect as the order, there were in effect two orders
for periodical payments being made when section 23(1)(d) permits the making of
only one such order either to the child or to someone for the benefit of the
child.
I
am not prepared to give such a narrow construction to the Act. The court has
power to make "any one or of the following orders". In my view those words are
wide enough to mean not only the orders provide in (a) to (f) but any one or
more of the orders within a subparagraph. It is not uncommon for older
children, and especially undergraduate children, to operate their own bank
account and to manage an allowance provided for them. That is money which
should be paid to them. It may be wholly appropriate that children learn from
having personal control over a modest allowance, but it is not appropriate that
there should be a relationship between parent and child which requires a parent
to have to go, almost cap in hand, to the child for a contribution towards the
cost of maintaining the home and all that goes with it for the benefit of the
child. This is what happened in this case, and it proved embarrassing for both
mother and daughter. Management of the household budget should be left to the
adult. That dichotomy is properly reflected in the orders made by the learned
judge. I reject the submission that there was no jurisdiction to make them. As
Mrs Mullally pointed out, it is now common practice to make orders for payment
partly to the child (or the parent for the child) and directly to a fee paying
school. There is in my judgment power to make an order to the child as well as
to the parent for the child.
Mr
Evans further complains of the judge's approach in deciding how much to order
by way of periodical payments. He cannot criticise the way she directed herself
that each parent should contribute to the child's needs as best they can; nor
can he object to the finding of the mother's limited needs. The judge rightly
found that the husband, certainly in income terms, is a wealthy man who could
reasonably be expected to meet his daughter's financial needs throughout her
university course. The judge's finding that the husband can be expected to
contribute the whole of the reasonable expenditure on keeping a home going for
Camilla for the period of that course cannot be challenged.
The
criticism is, however, that the judge erred in taking as her starting point the
£14,000 provided for in the original order and endeavouring to allocate it
between the mother and daughter. That criticism seems to me is misplaced. The
husband was offering to maintain his daughter. The judge asked counsel how much
he was suggesting would be a proper contribution bearing in mind the allowance
he was making to her. His suggestion was £10,000 for two years and
£5,000 thereafter. The judge did not find it a logical response and
commented that on the one hand £10,000 would be too much but on the other
£5,000 too little. Since the order provides for a four-year term, the
mathematics suggest that the average of £7,500 which the judge achieved is
probably about right. The judgment was:-
"Doing
the best I can, I consider that sums offered by the husband are the appropriate
ones to order with that degree of backdating."
In
the light of the information volunteered by the husband, there was material
before the judge justifying the order she made. It does not lie in the
husband's mouth now to complain in this court that he or his counsel were put
under some kind of unfair pressure by the learned judge in asking them to state
what they were willing to pay. The case had always been presented as one where
he had the means to pay whatever was expected of him. Given his answer and the
broad range of figures before the court, there was, in the particular
circumstances of this case, no need for a minute breakdown of the household
expenditure and the complaint that the learned judge was plainly wrong in
arriving at the conclusion she did is not made out.
The
husband also appeals against the order for costs made against him. The judge
held that:-
"I
have already indicated, but I will repeat, that this seems to me to be a case
in which it entirely appropriate to order the husband to pay all the costs. The
point on which has succeeded is a point that was only raised on Monday of this
week and it could have raise at any time in the course of these proceedings.
The remainder of the argument in this case has not taken up sufficient time or
energy for it to be appropriate for me to order that conclusion."
Mr
Evans submits that there was no good reason given why costs should not follow
the event. Costs are, however, in the discretion of the court. Here the point
was not only taken very,very late in the day but the husband had in the
meantime submitted to orders made by consent providing for periodical payments
to the wife. His original appeal to the judge was limited to that part of the
District Judge's order which made a nominal order in the wife's favour to
preserve her position for the future. But that was not the end of it. There was
a major issue about periodical payments to or for the child. On that issue the
wife won, and won handsomely. The judge was entitled to take the view that the
greater victory was obtained by the wife. It was, in my judgment, within the
bounds of the proper exercise of discretion to make an order for costs in the
wife's favour.
The
learned judge did, however, go further. She ordered costs to paid on an
indemnity basis. That had not been sought and Mrs Mullally does not resist an
appeal against that part of the order. I say no more about it. To that extent
only the husband's cross appeal succeeds.
In
the result I would dismiss the wife's appeal and uphold the order dismissing
her claim for periodical payments. Save that I would substitute an order for
the wife's cost to taxed on a standard basis, not on a indemnity basis, I would
dismiss the husband's cross appeal.
I
would add this. We were presented with a cardboard carton of six arch-lever
files containing about 1,200 pages of material totally irrelevant on this
appeal, including bank statements and the myriad of other financial documents
which burdened the District Judge's enquiry. Such copying represented a total
waste. It would seem to be a breach of the Practice Statement and Practice
Direction dated 26th July 1995 which directs solicitors how to prepare bundles
for the Court of Appeal. It is now time that practitioners take note of pages
69-79 of the Fourth Supplement to the 1995 White Book and the Taxing Master's
powers to disallow costs of unnecessary copying. I shall invite him to consider
such a course in this case.
LORD
JUSTICE POTTER: I agree.
© 1996 Crown Copyright