QUEEN'S BENCH DIVISION
ADMINISTRATIVE COURT
Strand, London, WC2A 2LL |
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B e f o r e :
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THE QUEEN (ON THE APPLICATION OF McVEY and OTHERS) |
Claimant |
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- and - |
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THE SECRETARY OF STATE FOR HEALTH |
Defendant |
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Leigh-Ann Mulcahy QC and Lucy Colter (instructed by The Solicitor, the Department of Work and Pensions and the Department of Health) for the Defendant
Hearing dates: 26 and 27 January 2010
Further written submissions received on 28 January 2010, 1 and 4 February 2010
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Crown Copyright ©
Mr Justice Silber:
I. Introduction.
II The Present Proceedings
(i) The present claims
(a) the Secretary of State's delay in considering the radical proposals made to him by the Trustees was unreasonable and unlawful and, if so, what the consequences are ("The Delay Issue") (see paragraphs 45 to 62 below);
(b) the Secretary of State gave any reasons for rejecting the Trustees' radical proposals ("The Reasons Issue") (see paragraphs 63 to 71 below);
(c) the Secretary of State's decision to reject the Trustee's radical proposals was irrational and unlawful because he should have deferred to the views of the Trustees ("The Trustees Deference Issue") (see paragraphs 72 to 82 below);
(d) the Secretary of State's decision to reject the Trustee's radical proposals was irrational and unlawful because the Secretary of State had failed to exercise his discretion in accordance with the objects and the purposes of the Scheme set up by the trust Deed. ("The Scheme Purposes Issue") (see paragraphs 83 to 97 below); and
(e) there are other reasons why relief should not be granted in favour of the claimants ("The Relief Issue") (see paragraphs 98 to 102 below).
(ii) The Interested Parties
(a) A declaration that the defendant has, since 2002 unreasonably failed to revise or amend the vCJD Compensation Scheme operated by the vCJD Trust to provide compensation for the cost of gratuitous care to families caring for long surviving vCJD patients receiving experimental treatment. It could have been recognised that the Compensation Scheme and the complementary National Care Scheme were intended to provide comprehensive care to vCJD victims during their lives and that a time might come when treatment was trialled which would extend those lives, necessitating revisions to the vCJD Trust to deal with the new problems that such long term survival would pose;
(b) A declaration that the defendant has delayed unreasonably in failing to revise the vCJD Compensation Scheme operated by the vCJD Trust, since he was informed of the need for a radical overhaul of the scheme by the Trustees in early 2006;
(c) A declaration that the defendant has treated the issue of compensation for gratuitous care of the families of long surviving vCJD patients perversely and/or irrationally by asserting that the responsibility for providing such compensation lay with the Trustees of the vCJD Trust, when it knew (or ought to have known) that the Trustees had no power or discretion under the Trust to compensate such losses; and
(d) Such other declaratory, mandatory or other remedy or order as the court thinks fit.
III. The Parties.
(i) The Claimants
(ii) The Role of the Secretary of State.
"34.1 The Trustees shall no less frequently than once in every calendar year consider whether the trust powers and provisions conferred upon the Trustees by this trust instrument are adequate to enable the Trustees to act for the best interests of the beneficiaries and if in the opinion of the Trustees such trust powers and provisions are not adequate the Trustees may by deed with the written consent of the Secretary of State amend vary or alter such trust powers and provisions. Provided that such amendment variation or alteration may not remove any benefit to which any such beneficiary is or has become entitled prior to the date of any such deed."
(ii) The Trustees
IV. Resolving the Factual Dispute on Date of Rejection by the Secretary of State of the Radical Proposal.
(i) Introduction.
"78. In March 2008, Ministers considered all of the issues surrounding a revision of the scheme and made a decision to reject the Trustee's proposal for a major revision of the existing scheme, instead inviting the Trustees to consider certain possible alternative and less radical ways of resolving such difficulties as they had encountered in the administration of the Scheme by way of a further revision of the Trust Deed…".
(ii) The correct legal principles
"Since we have had to decide this matter on affidavit evidence without the benefit of cross-examination, we are obliged to take the facts where they are in issue as they are deposed to on behalf of the Board".
"the court must, in those circumstances, fall back on the principle that where a relevant dispute cannot be resolved on the written material alone the facts must be assumed to be those which favour the respondent".
"18. It is a convention of our litigation that at a trial in general the evidence of a witness is accepted unless he is cross-examined and thus given the opportunity to rebut the allegations made against him. There may be an exception where there is undisputed objective evidence inconsistent with that of the witness that cannot sensibly be explained away (in other words, the witness's testimony is manifestly wrong), but that is not the present case. The general rule applies as much in judicial review proceedings as in other litigation although in judicial review proceedings it is relatively unusual for there to be a conflict of testimony and even more unusual for there to be cross-examination of witnesses.
19.. I think I should adhere to the general rule except where the contemporaneous documents dictate that a witness statement must be incorrect".
"138.. I agree with the observations.. of.. Lord Scott about the possibility of adjusting judicial review procedure in appropriate circumstances to cover any necessary factual investigations and determinations".
"4. Where a public authority relies on a document as significant to its decision, it is ordinary good practice to exhibit it as primary evidence. Any summary, however conscientiously and skilfully made may distort".
"33… a party whose affidavits contain a reference to documents should therefore exhibit them in the absence of a sufficient reason (which may include the length or volume of the documents, confidentiality or public interest immunity)".
In this case, there has not been any affidavit referring to any such material or to any other documents.
"47… it seems to me entirely inconsistent to tender and rely on secondary evidence instead. The courts would not allow a private litigant to do this, and in a legal system in which the state stands before the courts on an equal footing with the citizens there is no good reason to allow government to do it".
i) The basic rule is that where there is a dispute on evidence in a judicial review application, then in the absence of cross-examination, the facts in the defendants' evidence must be assumed to be correct;ii) An exception to this rule arises where the documents show that the defendant's evidence cannot be correct; and that
iii) The proper course for a claimant who wishes to challenge the correctness of an important aspect of the defendant's evidence relating to a factual matter on which the judge will have to make a critical factual finding is to apply to cross-examine the maker of the witness statement on which the defendant relies.
(iii) Discussion
"you indicated to me that the Secretary of State was unlikely to accept a radical revision of the scheme for reasons which you indicated to me".
"You may recall that when we met in April, you advised that Ministers were not inclined towards a radical revision of the Trust Deed. The view of [Department of Health] Ministers is that the original proposal is too radical…".
"The Trustees repeat their request that the Secretary of State adopt their primary proposal for a radical revision of the scheme. They submit their more limited proposal, as set out in the documents enclosed, for consideration only in the event that the radical revision is rejected".
"in March 2008, Ministers considered all proposals surrounding a revision of the Scheme and made a decision to reject the Trustees' proposals for a major revision of the existing Scheme, instead inviting the Trustees to consider certain alternative ways in resolving such difficulties as they have encountered in the administration of the Scheme by way of more minor revisions of the Trust Deed."
(iv) Conclusion.
V. The Delay Issue.
(i) Introduction
"you may recall that when we met in April you were advised that Ministers were not inclined towards a radical revision of the Trust Deed. The view of the [Department of Health] Ministers is that the original proposal was too radical and they would prefer to see an alternative set of revisions that will improve the working of the Trust Deed, while avoiding most of the drawbacks. To that end, we would like to see the more modest revisions presented in the terms of variations to the Trust Deed as suggested in your email"(which was I believe the email of 25 June 2008 to which I referred in paragraph 51 above).
"She accepted, at that meeting the need to implement some changes to the Trust Deed on the basis of the experience gained so far, but she was not persuaded by the arguments for radical change as embodied in your original proposal. She proposed, and I endorse her request, that you develop your less radical proposals as a basis for the way forward".
"The delay here was unconscionable and unreasonable is especially so given the "distress and anger" that Sir Robert Owen recognised was being caused to families of the victims by the operation of the existing scheme and the "prolonged suffering" that the processing of the claims was causing the families".
(iii) Discussion
VI. The Absence of Reasons for the Decision Issue.
(i) Introduction.
"There were complex issues of law and policy involved in any major revision to the Scheme. Whilst there were attractions in terms of speed and lower costs to a more standardised scheme, one of the relevant factors is that the number of new cases emerging is currently very low (only 1 new case was diagnosed during 2007, 2 during 2008 and 1 during 2009 to date) [the figure for 2009 was ultimately 3 as updated in §10 Mr. Stopes-Roe #3] and accordingly, most of the difficulties encountered in the administration of the Scheme are now largely historic and, in the Defendant's view, did not justify changing a Scheme in a way which (despite the strong and clear view of the Trustees that it should only be prospective) may either lead families already in receipt of compensation (such as the Claimants in this case) to contend that their claims (and potentially all claims already decided) should be re-opened and determined in accordance with any new Scheme or alternative future beneficiaries who perceive that the old regime was 'better' to complain. It was also considered undesirable to make a system set up to meet individual needs far less sensitive to variation in need and circumstances. Further, there was concern over transferring the difficult discretionary decisions made by the independent and more detached Trustees to families with the potential distress and costs (e.g. of appointing professional Trustees) that this might involve. It was considered that alternative revisions could improve the working of the Trust Deed whilst avoiding most of the drawbacks of a radical revision of the Scheme. The Trust were informed that Ministers were unlikely to accept the proposals for a radical revision of the Scheme on 8 April 2008 and confirmed on 29 August 2008 that Ministers were not inclined towards a radical revision of the Trust Deed but would prefer to see an alternative set of revisions put forward to improve the working of the Trust Deed avoiding most of the drawbacks."
i) The fact the number of new cases emerging was low and the difficulties encountered were now largely historic and did not justify changing the Scheme in a 'radical' way for the future;ii) The risk that, despite the clear view of the Trustees that the revision should be prospective only, it would lead those already in receipt of compensation to complain that their claims or all claims should be re-opened;
iii) The risk that future victims might consider that they would have done better under the old Scheme and complain about the change to the Scheme. (Such victims could potentially argue that they had a legitimate expectation that they would be treated in accordance with the original Scheme which was expressly set up for the first 250 victims of vCJD);
iv) The undesirability of changing a system which was specifically set up to meet individual needs to a more standardised scheme which would make it far less sensitive to variation in need and circumstances;
v) The undesirability of transferring difficult discretionary decisions made by independent and more detached Trustees to the families with the potential for distress and cost to them (e.g. of appointing professional Trustees), such cost (which could be high) coming out of the compensation received; and
vi) The fact that alternative more modest revisions could improve the working of the Trust Deed without the drawbacks of a radical revision.
VII. The Trustees Deference Issue.
(i) Introduction
"37 ... The function of the court is not to take the primary decision but to ensure that the primary decision-maker has operated within lawful limits…the essential concern should be with the lawfulness of the decision taken: whether the procedure was fair, whether there was any error of law, whether any exercise of judgment or discretion fell within the limits open to the decision maker, and so forth . . ..
43. The decision is unlawful only if it falls outside the limits of that discretionary area of judgment. Another way of expressing it is that the decision is unlawful only if it falls outside the range of reasonable responses to the question of where a fair balance lies between the conflicting interests".
(ii) The Duty of the Secretary of State to take account of the Expertise of the Trustees
(iii) Conclusion
VIII. The Scheme Purposes Issue
(i) Introduction
"Parliament must have conferred the discretion with the intentions that it should be used to promote the policy and objects of the Act; the policy and objects of the Act must be determined by construing the Act as a whole and construction is always a matter for the court".
"if the subject matter in respect of which a prerogative power is exercised is justiciable, that is to say it is a matter upon which the court can adjudicate, the exercise of the power is subject to review in accordance with the principles developed in respect of the review of the exercise of statutory power".
"the Trust's powers and provisions conferred on the trustees are adequate to enable the trustees to act for the best interests of the beneficiaries".
(ii) Was the Secretary of State obliged to consider the Trustees' radical proposals made pursuant to clause 34.1 of the Trust Deed against the criterion as specified in that clause "the Trust's powers and provisions conferred on the trustees are adequate to enable the trustees to act for the best interests of the beneficiaries" or could other factors be taken into account?
"The Trust's powers and provisions conferred on the trustees are adequate to enable the trustees to act for the best interests of the beneficiaries".
(iii) If Secretary of State had to exercise his powers to ensure that "the Trust's powers and provisions conferred on the trustees are adequate to enable the trustees to act for the best interests of the beneficiaries", were the reasons given for the rejection of the radical proposals by the Secretary of State in conflict with this criterion so as to be impugnable on public law grounds?
(a) His concerns that future victims might consider that they would have done better under the old Scheme and complain about the change to the Scheme. (Such victims could potentially argue that they had a legitimate expectation that they would be treated in accordance with the original Scheme which was expressly set up for the first 250 victims of vCJD);
(b) The undesirability of changing a system which was specifically set up to meet individual needs to a more standardised scheme which would make it far less sensitive to variation in need and circumstances; and
(c) The undesirability of transferring difficult discretionary decisions made by independent and more detached Trustees to the families with the potential for distress and cost to them (e.g. of appointing professional Trustees), such cost (which could be high) coming out of the compensation received.
"is not to take the primary decision but to ensure that the primary decision-maker has operated within lawful limits…the essential concern should be with the lawfulness of the decision taken: whether the procedure was fair, whether there was any error of law, whether any exercise of judgment or discretion fell within the limits open to the decision maker, and so forth. 43. The decision is unlawful only if it falls outside the limits of that discretionary area of judgment".
IX. The Relief Issue
"(B) The Secretary of State wishes to provide such funds in a manner which does not prohibit such persons or their families from taking legal proceedings against the Crown and/or related bodies if so advised but wishes to ensure so far as possible that in the event of such proceedings being brought the sums paid under this Deed and the vCJD First Interim Trust and the vCJD Second Interim Trust are taken into account in the computation of damages to be claimed in any such proceedings."
X. Conclusion