Strand, London, WC2A 2LL |
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B e f o r e :
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AR |
Appellant |
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- and - |
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ML |
Respondent |
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Pegah Sharghy (instructed by Gordons Partnership LLP) for the Respondent
Hearing date: 20 September 2019
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Crown Copyright ©
Mr Justice Mostyn:
"Upon hearing closing submissions from counsel for each party and the court delivering its judgment which has yet to be perfected into an order.
And upon the applicant [wife], after the delivery of judgment making an oral application (i) for permission to introduce further evidence relating to housing needs, namely further property particulars; and (ii) for an adjournment of this final hearing to a future date; and (iii) for the judgment delivered today not to be perfected into a final order, and the respondent opposing the applications
And upon the court delivering an oral judgment in relation to the above applications
…
IT IS ORDERED THAT
1. This case shall be adjourned to 3 May 2019… for finalising judgment and reconsideration of suitable housing fund for the applicant and the child of the family. …
2. Permission to the applicant to file and serve by 4 PM on 15 April 2019 a concise statement as to her position on suitable housing together with property particulars in support (limited to 5).
3. Permission to the respondent, if so advised, to file and serve by 4 PM on 25 April 2019 a concise statement in reply and adduce property particulars (limited to 5) …"
"In care proceedings brought by a local authority in respect of two children after one of them had been found to have numerous non-accidental injuries, the judge held a fact-finding hearing to determine, inter alia, the identity of the perpetrator or perpetrators. Each parent accused the other of being the sole perpetrator. The judge gave an oral judgment, later transcribed under the heading "Preliminary outline judgment", which concluded that the father was the perpetrator and an order was drawn up to that effect. Before that order was formally sealed the judge gave a second "perfected judgment" holding that after further consideration of the evidence she was unable to find to the requisite standard which of the parents had injured the child and that it could have been either of them."
"The power of a judge to reverse his decision at any time before his order was drawn up and perfected by being sealed by the court was not limited to exceptional circumstances; that the overriding objective in the exercise of the power was to deal with the case in question justly; that relevant factors to consider would include, on the one hand, a party having already acted upon the decision to his detriment and, on the other, the existence of a mistake by the court, a failure to draw the court's attention to a plainly relevant fact or point of law, or the discovery of new facts after judgment had been given; that justice might require the revisiting of a decision for no more reason than the judge having had a carefully considered change of mind, since every case would depend upon its particular circumstances; that the need for the power to be exercised judicially and not capriciously required that consideration be given to offering the parties the opportunity of addressing the judge on whether he should change his decision, and the longer the interval since the first decision the more likely it was that it would not be fair to do otherwise; that it followed that, in the absence of evidence of any party having irretrievably changed their position as a result of the judge's first decision, and since the child's placement had yet to be decided, the judge had been entitled to change her mind and so avoid having to decide a future placement upon what she believed to be a false basis; that, moreover, since the judge had been in possession of all the evidence and full submissions as to its relevance, there had been no need for her to give the parties an opportunity to address her before announcing that change of mind; and that, accordingly, her second judgment was valid."
"This appeal turns on the outcome of a bare-knuckle fight between two important and long-established principles of public policy. The first is that fraud unravels all. The second is that there must come an end to litigation."
"… any determination of disputable fact may, the law recognises, be imperfect: the law aims at providing the best and safest solution ... and having reached that solution it closes the book ... in the interest of peace, certainty and security it prevents further inquiry ... there are cases where the certainty of justice prevails over the possibility of truth ... and these are cases where the law insists on finality. For a policy of closure to be compatible with justice, it must be attended with safeguards: so the law allows appeals: so the law, exceptionally, allows appeals out of time: so the law still more exceptionally allows judgments to be attacked on the ground of fraud."
"An application to set aside a financial remedy order should only be made where no error of the court is alleged. If an error of the court is alleged, an application for permission to appeal under Part 30 should be considered. The grounds on which a financial remedy order may be set aside are and will remain a matter for decisions by judges. The grounds include (i) fraud; (ii) material non-disclosure; (iii) certain limited types of mistake; (iv) a subsequent event, unforeseen and unforeseeable at the time the order was made, which invalidates the basis on which the order was made."
"Where a party's advocate considers that there is a material omission from a judgment of the lower court … the advocate should before the drawing of the order give the lower court which made the decision the opportunity of considering whether there is an omission and should not immediately use the omission as grounds for an application to appeal."
"It is the responsibility of the advocate, whether or not invited to do so by the judge, to raise with the judge and draw to his attention any material omission in the judgment, any genuine query or ambiguity which arises on the judgment, and any perceived lack of reasons or other perceived deficiency in the judge's reasoning process."
Under this procedure material omissions and perceived deficiencies would normally extend no further than an obvious numerical error (for an example of which see H v T (Judicial Change of Mind) [2018] EWHC 3692 (Fam)), or an accidental failure to take on into account some evidence before the court which showed the existence of a material fact. There is no example in the reported cases, however, of the material omission in question being evidence which was not placed before the judge, but which could have been.
"It is therefore instructive to notice examples of the application to particular facts of the jurisdiction to reverse a decision prior to the sealing of the order. An early example is Miller's Case (1876) 3 Ch. D 166: the court's attention had not been drawn to one of a company's articles of association, which compelled a conclusion opposite to that which had been reached. Another example is Millensted v. Grosvenor House (Park Lane) Ltd [1937] 1 KB 717: for the negligence of the hotel in upsetting a jug of hot water over her, the judge awarded damages of £50 to the claimant but on the following day, without further argument on that point, he informed the parties that his award had been excessive and would be only £35. A third example is In re Harrison's Share under a Settlement, cited above: ten days after the judge had approved proposed variations of trusts the House of Lords held in other proceedings that a judge had no jurisdiction to do so in such circumstances. A fourth example is Dietz v. Lennig Chemicals Ltd [1969] 1 AC 170: shortly after the date of a master's approval of a settlement of the claims of a purported widow and child it was learnt that three weeks prior to that date the widow had remarried."
"16. There are two major differences between the circumstances of In re L and this case. First, as counsel pointed out, In re L was a case concerning the care of children. That is true but it is clear that the Supreme Court were considering the legal principles from the point of view of civil and family law in general and not just in children cases.
17. The second difference is important. In re L was concerned with a judge changing her mind. It was not a case, like this one, about an application by the losing party to raise a new, hitherto un-pleaded issue, call more evidence and have a new point decided. This case is not one in which I am being invited to change my mind about a point I have decided based only on what I heard at the time. Nevertheless, it seems to me that this difference does not mean that the general principle articulated by the Supreme Court is inapplicable. By that I mean that the overall guiding principle here is the overriding objective to deal with cases justly, or, in terms of the CPR Part 1 as it is today, to deal with cases justly and at proportionate cost. It must be applied in different factual circumstances and the fact that this application involves amended pleadings and new evidence is an element, no doubt an important one, in the relevant circumstances."
"While I think that these three factors [in Ladd v Marshall [1954] 1 WLR 1489] should be in the forefront of the mind of the court when considering an application to admit new evidence after judgment has been handed down, but before the order has been drawn up, I am inclined to the view that the court must be somewhat more flexible and not to proceed on the strict basis that each of these three conditions always has to be satisfied before fresh evidence can be admitted before judgment."
Those three factors are very well-known and are as follows:
"First, it must be shown that the evidence could not have been obtained without reasonable diligence for use at the trial. Secondly, the evidence must be such that, if given, it would probably have an important influence on the result of the case, though it need not be decisive. Thirdly, the evidence must be such as is presumably to be believed or, in other words, it must be apparently credible, though it need not be incontrovertible."
"I can summarise the principles in this way. The court has a jurisdiction, at least before the order is drawn up, to entertain an application of this kind as in here. The principle to be applied generally is the overriding objective to deal with cases justly and at proportionate cost. This involves dealing with cases expeditiously and fairly and allocating an appropriate share of the court's resources to a dispute. In a case like this one, in which the application is to amend the statement of case, call fresh evidence and then have a further trial, the principles relevant to amending pleadings have a role to play but the Ladd v. Marshall factors are also likely to have real significance."
And at [40]:
"As to Ladd v. Marshall, the trial judge is in some ways in a better position than the appellate court to assess the significance of a new point and new evidence. In any case, at this stage the Ladd v. Marshall factors should be applied more leniently to an applicant than they might be applied in an appellate court; but, all the same, the Ladd v. Marshall factors are clearly relevant because the application is an attempt to call new evidence after judgment. If those factors, even applied more leniently, are against the applicant, it is likely that powerful factors in the applicant's favour will be needed to justify the application."
"Each party shall serve copy estate agents particulars of properties on which they wish to rely at the final hearing and that they consider to be suitable to meet their own and the child of the family's housing needs, and the housing needs of the other and the child of the family's, (limited to 5 of each) by 4 PM on 24 January 2019."
"15. In cross-examination the wife said that from the sum of £600,000, which she seeks, she will pay her debts of approximately £63,000 and buy a mortgage-free property in Crouch End. However, she accepted that she has not found any properties in Crouch end for approximately £525,000 which is the sum she would have left.
16. I have been addressed extensively on the issue of the property particulars put forward by each party. The facts are that I have no property particulars in Crouch End for any property less than £575,000 and I have no properties in any area in the range from £370,000-£575,000, that is a range of £205,000. To say that this is less than helpful for the court is an understatement.
…
30. I find that neither party has a mortgage capacity at this moment and I do not find that the wife will definitely have a mortgage capacity in two years' time. Although I understand the reason why the wife wants to remain in Crouch End, her own evidence shows that it is not possible to do so in the properties she has put forward for on her case, after paying her debts, she will be left with less than £530,000 with which to pay all the costs of rehousing. She accepted that she has not been able to find any properties in Crouch End for approximately £525,000 and the husband said that there would be no properties for approximately £500,000. They would be significantly more than that.
31 The wife has not presented any properties in any area other than Crouch End and I find this to be unhelpful to me and an indication that the wife has not looked at the financial realities of rehousing
…
33. The stark reality of this case is that the wife cannot be rehoused in her ideal property which is two bedroomed accommodation in Crouch End with a garden. She will have to look in areas outside Crouch End … The wife's other alternative is to look for much smaller properties in Crouch End, if they exist. …
34. I find that the wife's proposals do not produce a fair outcome and that the husband's proposals do not meet the needs of the wife and M. This is a short 5½ year marriage where the husband made greater financial contributions but where neither party has mortgage potential now. This is not a compensation case; but this is a case where both parties should be rehoused now in mortgage-free accommodation and on the information available to me I am satisfied that the wife and M can be rehoused, reasonably, with a housing fund of £410,000."
"You can also make a note that in fact the £370,000 property which the husband before we meet the needs of the wife and M in terms of size of the accommodation, where it is to the school, where it is to the Academy but I have accepted what she said about each specific property and therefore doing the best I can I have awarded her a slightly larger figure so that she would be able to find something which is "better" than the husband has put forward."
"I do ask the court to consider a short adjournment for consideration of any property particulars in Crouch End that would meet the wife's proposal as they stand and for you to reconsider this needs argument and the disparity of the parties. That would be – that would assist you in making a safe and fair decision, it has huge consequences not just for my client but for M"
"You will have from each party five property particulars of available properties in Crouch End commensurate with either your proposed judgment figure of £410,000, or indeed in East Barnet, the husband wants to propose, and on the figures that the wife proposes of £525,000. Those would be the property figures the parties will have, then you will evidence as to both types of housing and determine which one is suitable and the reasons for that … it would be an update to your extempore judgment delivered this afternoon, it won't be a rehearsal of it, it would be the figures stated in your judgment today would be revised to X amount to the wife on the basis that the court having seen the evidence, this is the assessed needs, whether you confirm or change the figure depending on the evidence, that's what we propose, it is not necessary and there is not much the parties would say because all the arguments have been rehearsed in terms of location, logistics and fairness"
"On balance I am just persuaded that I should allow the wife the opportunity to put before me evidence which should have been before me before now but that has to be on the basis that both parties are able to question the other party as to what they are saying and to make further submissions which will not only be about whether or not the wife can rehouse in Crouch End for a figure of less than £575,000 but also depending upon – if there is a lower figure for the housing in Crouch End, whether or not I were to accede to the wife's request for that sum of money, it would produce a fair outcome, because that is also what I have to look at. So the decision I make on this is that I am not going to seal the decision which I have made today and in fact will not say that that is now my final decision and I will allow further evidence, submissions on this matter which I agree with Mr Richardson has really been the crux of the matter for a very long period of time, but sympathetic as I am to the husband and I well understand what we now think is ostensibly more than frustration apart from anything else, I do have an overwhelming duty to do justice and in this case that means looking at this wife, this husband and this child"
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