QUEEN'S BENCH DIVISION
PLANNING COURT
B e f o r e :
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WESTMINSTER CITY COUNCIL | Applicant | |
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SECRETARY OF STATE FOR HOUSING COMMUNITIES AND LOCAL GOVERNMENT | Respondent |
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MR M. WESTMORELAND SMITH (instructed by Government Legal Department) appeared on behalf of the Respondent.
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Crown Copyright ©
MR JUSTICE HOLGATE:
"The consent order is to be accompanied by a proper explanation as to why, notwithstanding the fact that CO/3818/219 has been fixed for substantive hearing since 10/12/2019, and the parties sought to have CO/4722/2019 listed at the same time, the parties failed to (a) comply with the directions made by Mr Strachan QC on 27/11/2019 and Sir Wyn Williams on 29/01/2020 as to the filing of trial bundles ad skeleton arguments and (b) notify the court in good time that these matters were to settle..."
The parties were also required to provide a detailed chronology of the settlement negotiations. They were informed that they might be required to appear on 5 March 2020 to explain the position depending on the answers received.
"The Council sought advice from counsel in respect of a number of issues arising from the taking stock exercise. Given the very high profile nature of the kiosk issues, the Council took time to consider and review its position carefully. The Council gave instructions to discontinue the claims for the reasons given in the schedule appended to the consent order and in the letter provided to the Court by the GLD. The Council immediately informed the parties of this decision on 12 February and sought to agree a consent order. As explained by the GLD there then followed around 2 weeks of discussion on the costs issue."
The words italicised did not accord with the explanation given in the GLD's emails of 27 February and 4 March, which are now agreed by the parties to be correct. The costs issue did not occupy the period of 2 weeks from that date. Instead, the claimant failed to send even a draft for consideration by the other parties until 20 February. This explanation was materially inaccurate as far as it went and it was also seriously incomplete.
"The Council had been hoping to send an agreed order much sooner and had not anticipated the issues regarding costs to remain unresolved until as late as today. Nonetheless it ought to have kept the court informed and it apologises unreservedly for this."
"The majority of the decisions taken by the Inspectorate are consistent with the position set out in the judgments; it is only the odd case where inspectors clearly do not understand or have not followed the guidance and current case law where these anomalies have arisen. Given that the majority of the appeal decisions have now been issued, the Council considers that the mischief caused by these rogue decisions is unlikely to recur. Going forward, this is also reinforced by the amendments to the GPDO which recognise the Council's position that kiosk development should not benefit from PD rights in the first place. Given the small number of outstanding appeals, the Council intends to take the matter up the Chief Planning Inspector at PINs rather than expending further time and resources in respect of these individual decisions."
That reasoning was essentially the same as that set out in the schedule to the draft consent order which was not submitted to the other parties until 8 days later and to the court 15 days later.
"In light of the above I propose to write to the court notifying it of the Council's attention [I assume that should have read intention] and will shortly forward a draft consent orders (sic) for your approval."
"The draft was submitted not long after the initial letter was sent notifying the Secretary of State of the claimant's intention to withdraw the claims."
"The claimant had not expected the interested party to seek its costs as it had not submitted an AOS for the second Maximus claim, nor detailed grounds of assistance regarding the first Maximus claim. The Council had also understood the interested party had informed the court it was not taking any further part in the proceedings. Emails regarding judicial authority and costs were sent to the IP with a view to resolving this issue so that the order could be agreed without having to trouble the court to make a decision on this satellite issue. The IP withdrew its proposal for costs on 26 February and the court consent order was agreed.
There was initially a short consideration re costs sought by the Secretary of State but the Council was content to meet their costs. Therefore the order was agreed by the SOS, but there was an issue with the IP regarding payment of their costs as explained above." (emphasis added)
"It provides general guidance as to how litigation in the Administrative Court should be conducted in order to achieve the overriding objective of dealing with cases justly and at proportionate cost. …
In recent years, the Administrative Court has become one of the busiest specialist Courts within the High Court. It is imperative that Court resources (including the time of the judges who sit in the Administrative Court) are used efficiently. That has not uniformly been the case in the past where the Court has experienced problems in relation to applications claiming unnecessary urgency, over-long written arguments, and bundles of documents, authorities and skeleton arguments being filed very late (to name just a few problems). These and other bad practices will not be tolerated. This Guide therefore sets out in clear terms what is expected. Sanctions may be applied if parties fail to comply."
"The parties must make efforts to settle the claim without requiring the intervention of the Court. This is a continuing duty and whilst it is preferable to settle the claim before it is started, the parties must continue to evaluate the strength of their case throughout proceedings, especially after any indication as to the strength of the case from the Court (such as after the refusal or grant of permission to apply for judicial review). The parties should consider using alternative dispute resolution… to explore settlement of the case, or at least to narrow the issues in the case."
This is undoubtedly an important aspect of the duty of all parties before the court to help it to further the overriding objective and also of the duty of candour (as explained in R (Khan) v Secretary of State for the Home Department [2016] EWCA Civ 416 at [48]).
"If the parties are aware that a case is likely to settle without the further involvement of the Court they should inform the ACO as soon as possible."
Similarly, paragraph 22.6.1 states:-
"The parties have an obligation to inform the Court if they believe that a case is likely to settle as soon as they become aware of the possibility of settlement. Such information allows judges and staff to allocate preparation time and hearing time accordingly. Failure to do so may result in the Court making an adverse costs order against the parties (see paragraph 23.1 of this Guide for costs)."
"The parties must comply with the procedural provisions in the CPR, the relevant Practice Directions and orders of the Court (including orders by an ACO lawyer). If a party knows they will not be able to do so they should inform the ACO and the other parties as soon as possible and make the application to extend the time limit as soon as possible (in accordance with the interim applications procedure in paragraph 12.7 of this Guide)."
"It is common ground that an application for an extension of time in such circumstances is akin to an application for relief from sanctions: see the decision of the Court of Appeal in R (Hysaj) v Secretary of State for the Home Department [2014] EWCA Civ 1633; [2015] 1 WLR 2472, applying the well-known principles in Denton and others v T H White Limited (Practice Note) [2014] EWCA Civ 906; [2014] 1 WLR 3926."
The judgment referred to the three well-known stages involved. The court pointed out that breaches of time limits of this kind, for example the submission of skeletons, even if only to cover a period of a day or two, should not be regarded with equanimity. The reason is obvious. Skeletons are typically required to be served relatively close to the hearing date.
"The order was not complied with as the Council had decided not to pursue the claims on 7 February. The skeleton was due on 12 February but since the Council had decided not to pursue the claims on 7 February, instructions were not given to counsel to prepare the skeleton."
Addendum to judgment
Further submissions for the Secretary of State
"[CPR 1.1(2)(e)] has assumed increasing importance. The duties imposed on parties and their professional advisers to keep the court informed of developments that may affect the use by the court of its resources are of particular importance, as they articulate a central aspect of the new rules commitment to proportionality."
"Unless these Rules or a practice direction provide otherwise or the court orders otherwise, the time specified by a rule or by the court for a person to do any act may be varied by the written agreement of the parties.
(Rules 3.8 (sanctions have effect unless defaulting party obtains relief), 28.4 (variation of case management timetable – fast track) and 29.5 (variation of case management timetable – multi-track), provide for time limits that cannot be varied by agreement between the parties)"
Further submissions for the Claimant
(a) The non-submission of a trial bundle and skeletons by the parties cannot be categorised as a clear breach of the court's orders in this case;
(b) The correspondence between the parties was tantamount to an agreement that the time limits in the orders be varied under CPR 2.11;
(c) The hearing on 5 March and the judgment which followed proceeded on a flawed basis that either the directions had to be complied with or an application made to extend time limits;
(d) The hearing on 5 March should not have taken place because there was no issue to be resolved as between the parties;
(e) The CPR encourages parties to settle disputes (see e.g. CPR 1.4(2)(f));
(f) The question of whether the claimant should pay the first defendant's costs was not an "open and shut issue".
Lessons for the future