CHANCERY DIVISION
Strand, London, WC2A 2LL | ||
B e f o r e :
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(1) Jonathan Guy Anthony Phillips (2) Robert Andrew Harland (suing as Administrators of the estate of Christo Michailidis) (3) Despina Papadimitriou |
Claimants | |
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(1) Robin James Symes (A Bankrupt) (2) Robin Symes Limited (In Administrative Receivership) (3)Jean-Louis Domercq (4) Frieda Nussberger (5) Philos Partners Inc. (6) Geoff Rowley And Kevin Hellard (Trustees In Bankruptcy Of The 1st Defendant) |
Defendants | |
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(1) Robin James Symes (A Bankrupt) | Claimant | |
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(1) Jonathan Guy Anthony Phillips (2) Robert Andrew Harland (suing as Administrators of the Estate of Christo Michailidis) (3) Langshaw Kyriacou (a firm) (4) Baker & Mckenzie (a firm) (5) Lovells (A Firm) (6) Peters & Peters (A Firm) (7) Bracher Rawlins (A Firm) |
Respondents |
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Mr J Behrens (instructed by
Messrs Berwin Leighton Paisner) for The Official Solicitor as Advocate for the
Court
Hearing dates: 12th, 13th, 14th, 15th, 16th 19th and 21st July 2004
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Crown Copyright ©
Mr Justice Peter Smith :
INTRODUCTION
a) Is or had been during any period after 27th February 2001 (and if so during what period) a patient within the meaning of CPR 21;
b) Is or has been during any such period incapable by reason of any mental disorder from fairly participating generally in these proceedings;
c) Is or has been during any such period unable to give evidence either orally or in writing and/or be cross-examined;
d) Was incapable by reason of any mental disorder from fairly participating in the hearing commencing 30 April 2003 and/or was mot responsible (by reason of such mental disorder) for the swearing of the affidavits and the making of witness statements which led to that hearing.
PRINCIPLES
1) A person of full age is presumed to have the mental capacity to manage his property and affairs until the contrary is proved, and the burden of proving the contrary rests on whoever asserted the incapacity (i.e. in this case Mr Symes).
2) The court as a matter of practice should investigate the question of capacity whenever there was any reason to suspect its absence, even if the issue did not appear to be contentious.
3) Where an issue of capacity arose, after a decisive step had already been taken, the court could regularise the position retrospectively under the rules provided everyone had acted in good faith and no injustice could be caused.
4) The test of mental capacity was issue specific and depended on the nature and complexity of the transaction in respect of the decision as to the capacity failed to be made.
5) For the purpose of CPR Part 21 the test to be applied was whether the party to the legal proceedings were capable of understanding, with the assistance with such proper explanation from legal advisers and experts in other disciplines as the case might require, the issues on which his consent or decision was likely to be necessary in the course of those proceedings, but although decisions actually made were likely to be important indicators of the existence or lack of understanding, a person was not to be regarded as unable to make any rational decision merely because the decision made would not have been made by a person of ordinary prudence, or conversely having mental capacity merely because his decision appeared rational.
"For my part, I find it of particular significance that, in this case, two experienced solicitors did not recognise the need for the appointment of a next friend; and that no criticism is made of either in that respect."
HOW DID THE ISSUES ARISE?
1) To disclose all premises where Relevant Chattels (as defined to extend to the collections that were owned by the Michalidis/ Papadimitriou family) were situated.
2) Not to deal with any assets save as prescribed by the Regime, namely selling only after notice to the Administrators' solicitors for full value at arm's length identifying the purchaser and setting out any third party interest in the object being sold.
SALE GIVING RISE TO PRESENT ISSUE
DISCOVERY OF TRUE SALE TERMS
"The first matter, which came up is that you have had an opportunity to glance at least at that medical report put in on his behalf. My Lord, without going into it in detail, it must be clear that with respect the contents of that medical report are not totally irrelevant to the pattern of this case. There must, and I say this with great caution, because I have no evidence for it at the moment, be some doubt as to Mr Symes ability fully to take part in the case, but we will put that aside for one moment".
AN APPARENT SENSE OF UNEASE
"These were drained by Mr Crockard at Wellington Hospital and he made a good recovery apart from an alteration in his judgment and the on set of a friendly rather supercilious air…".
"He made a remarkable recovery, having been originally unconscious for ten days. He slowly returned to a reasonably normal life. [But] subsequently he was vague and indecisive, lacked inhibition, showed anti-social behaviour, had impaired memory and on occasions did bizarre things such as buying five hats in a hat shop".
"… Improvement in his dealing abilities was a surprise, although it was quite expected that he would be unable to manage the broader aspects of his business. To my knowledge this condition has not improved over subsequent years".
"I have become extremely concerned by Mr Symes state of health in recent weeks. It seems to me, though I am no expert that it has deteriorated markedly. … it is also true that, while he had been in the office most of the day, almost every day since May, 6-8 hours each day, in the last week, he has been able to concentrate sufficiently to give me instructions only for about an hour a day. On Monday this week there was one occasions when he sat in front of me and appeared virtually catatonic he starred fixedly ahead and seemed not to hear my questions or to be able to speak. He shook. This lasted for several minutes."
i) Mr Symes is not fit to provide evidence, go through cross-examination, or give reliable accounts about past, present and future events.
ii) Mr Symes is unable to manage his own affairs, including his medical care and I recommend the Court of Protection proceedings ought to be considered.
Recommendations
With regards to giving instruction in complicated litigation, Mr Symes:-
i) Does understand that he has a problem in respect of which he needs advice;
ii) He is not able to instruct the advisor with sufficient clarity to enable him to understand the problem and advise appropriately.
iii) He is not able to understand the advice and make decisions or give effect to the advice received."
THE COURT OF APPEAL
THE EVIDENCE OF MR SYMES' EXPERTS
(1) Medical notes spanning the period of the illness.
(2) Evidence of lay people who had contact with Mr Symes (including for this purpose Dr Roberts).
(3) Documents in which Mr Symes had a role or was concerned.
(4) The evidence of his solicitors.
(5) The evidence of the Medical Experts (modified in the light of the concessions of Dr Zamar and Dr Green).
MEDICAL NOTES
LAY WITNESSES
"Robin would either agree or disagree, but his decision was final"
Equally, in paragraph 14 she referred to Mr Symes' poor numeracy skills, which existed before and after the illness. Her relationship with him ran from 1971 through to 1995. She indicated that she understood that that might be connected with his serious illness, but she had no material for that statement on her part. It seems to me that her evidence shows, in her own words that "[Mr Symes] was the principal, the obvious decision maker and the person to who both the client and Christo deferred in the decision making process".
CONCLUSION AS REGARDS NON-MEDICAL EVIDENCE
MEDICAL EVIDENCE
"He appears to understand questions well enough, and to respond to these, often in considerable detail. These documents do not give the impression of the sort of concrete thinking, incoherent, rambling or confused responding one might expect with significant frontal lobe dysfunction, disordering their thinking and leading to them being placed under the Court of Protection ".
"On the basis that the best level of performance provided the actual level of ability and that psychological test results if they are to be accepted as valid must be so ecologically, which is to say accurately reflect the patients true level of ability, then it would seem that today's test performance has rather underestimated the likely level of capability here. Of course Mr Symes reports feeling depressed, and under a lot of stress, due to all the legal proceedings and as noted above all of this may well have served to impair his ability to do his best".
(1) "Page 29, line 25:Question: I want to ask you about that document first of all is, do I understand it to be the case that this document records the terms upon which the granodiorite was held? Mr Symes' reply was "I think that's been put into the affidavit that I have given, hasn't it, I think?""
I personally do not find this to be significant. It was the second question asked of him by Mr Steinfeld QC in cross-examination, and he is in my view simply parrying Mr Steinfeld QC and reminding him that he has already dealt with it in an affidavit. It is to my mind of no significance.
(2) "Pages 31 line 12 to 13: In answer it is said Mr Symes shows either a clear failure to understand the role of directors of limited companies or the answer is so chaotic or unthought of to the point were it sounds as an unreasonable explanation trying to cover up for the answers which proceeded it."
I do not see that this answer is chaotic or unthought; or an unreasonable explanation. In the case of many private companies where individuals own the entire shareholding, it is regularly perceived by them that the company and themselves are indistinguishable. In practice, there is little of substance to complain about in that regard where the company is solvent, properly controlled by the director and has no (for example) different creditors. I do not see Mr Symes' answer as being of significance as contended for by Dr Zamar.
(3) "The interaction in page 41 line 18 and line 14 in page 42 shows that Mr Symes was unable to understand the question."
It is possible that this shows evidence of confusion. It is equally explicable however, on the basis that Mr Symes was facing an awkward question, which affected his credibility, and he could not answer it truthfully without damaging his case. He therefore appeared to be confused and thus sought to evade the question in the hope that would see off the question. This in my judgment is also not significant except to show Mr Symes is well able to deal with cross-examination and seek to evade giving inconvenient but truthful answers.
(4) "Page 55 line 1-21 clearly contradicts his affidavit that the sale was agreed with all parties (16th affidavit dated 2.5.03 paragraph 7). In my view it shows very poor planning."
Once again, this is Mr Symes being faced with a difficulty. All the experts (including Dr Zamar) acknowledged that there was no inability in respect of preparing affidavits and witness statements. He is not under immediate pressure and he has time to prepare them. Indeed the fact is that contradictory affidavits were sworn by him. It is therefore clear that in some way he was lying. Thus the original affidavit giving details of the sale cannot be true in the light of the affidavit sworn in 2003 correcting it. Conversely, if those affidavits are untrue, then that can only be on the basis that the earlier affidavit is true. None of that can be affected by an illness (I having rejected Dr Zamars' voice crying in the wilderness in respect of the illness making someone lie, for which he is not responsible). This question, once again, is simply bringing home the truth of his lies. Dr Zamar's explanation that it shows poor planning does not advance the overall position. That simply means that he knows that he is in difficulties and has lied badly. It does not invalidate the cross-examination; it merely made it more hard for him to lie effectively.
(5) "Page 56-62 again Mr Symes shows very poor planning and very poor understanding of finances."
I do not think this shows very poor planning and understanding of finances affected by his illness. Mr Edelstein gave evidence of Mr Symes always being poor with figures, as did Mrs Sparwasser. When Mr Symes was interviewed by Doctor Toone (paragraph 62 of his report), he described how he would when at school score 98% on religious knowledge, but only 15 to 30 % for maths. He said he was accused by his teachers of only applying himself to things that he enjoyed. Mr Symes seems to me to be someone who is "poor on figures" generally, but not because of his illness. Even then that is not necessarily clearly the case. At that part of the same transcript (page 58) Mr Symes under the pressure of cross-examination by Mr Steinfeld QC, actually does a quite bit of anticipatory correction to his calculations to deal with the fact that the initial basis of the division does not add up. It is true to say, that at page 60, in response to a question from me, when I show that he has given a number of different answers to the US$100,000.00 to be deducted, he said that was due to his lack of arithmetical expertise. However, it seems to me that this is more probably because he has been caught out in a lie. Even if it is down to arithmetical expertise deficiency I do not see that that is as a result of the illness.
(6) "I feel the most important point of the whole cross-examination record is contained in his answer page 65 line 6-9. Mr Symes clearly states "it was US$4 million, I believe, was required, was it not, and the statue was not that much money. I am afraid from 1988 I do not know the answer to that". The Citibank letter, which was provided in the affidavit is dated 29 May 1997 and the document with the agreement over the ownership of the statue is dated 17 November 1998. I was surprised to find Mr Symes referring to the events occurring in 1988, as this is exactly the pathology Mr Symes suffers from as I explained in my previous report."
This is Dr Zamar's most significant point, which I find quite extraordinary. First the transcript might simply be incorrect. That is a possibility that Dr Zamar was forced to concede. It is significant that whilst everybody was looking at the document at the very time when the questioning is taking place he is not corrected by anyone. The significant point, as regards the people participating in the trial at that time was therefore either not spotted or was so trivial as not to be worth considering. Yet this is Dr Zamar's crucial point. There is nothing in it in my opinion.
(7) "Page 72 line 8 question: "Where you present when discussions took place"? Answer: "No but they would have been discussed in Greek and in French". I feel that if an assumption is made, it should be that the discussion was in French as I assume all three parties spoke French so there was no need to discuss matters in Greek."
This was a mistake by Dr Zamar, because he did not understand that Mrs Nussberger was of Greek birth and therefore would speak in Greek. This was despite the fact that her Greek nationality was referred to earlier on on the same page of the transcript. This is a classic example of Dr Zamar fishing for answers to support his case rather than providing objective evidence.
(8) "Page 76 line 20-21. Mr Symes was telling the Court what his solicitors were advising him/telling him and Mr Burnett intervened saying, "you are not required to tell us what your solicitors told you"."
The idea that a person might make a mistake as regards disclosing privilege material, because of an illness of the like of Mr Symes, is ridiculous in my opinion.
(9) "Page 88 line 15. Question: "Have you in fact checked the banking records of RSL …". Answer: "No indeed". Question: "…to see when it was up to (up to repaid)". Answer: "No I am not". I believe the answer should be been "No 1 have not", not "No I am not". This again shows that Mr Symes did not understand the question."
The most probable explanation for this is a typing transcript.
(10) "Line 9-14: The question was whether Mr Symes was doing nothing improper. Mr Symes answer "I sold Robin Symes Limited share of the statue for 1.6 million dollars that's correct". It is clear that the answer did not at all approach the substance of the question and Mr Steinfeld QC then asked him whether this was proper."
I do not see that this is evidence of lack of clarity. Mr Symes is trying to reinforce his false argument by repeating the mantra that he needs to put forward then that he is selling a one third share for RSL and not the whole interest in the Statue.
"I do not see that Mr Symes is anything but capable of being cross-examined. I do not believe he has a mental illness, which would render the evidence he has given between April and May 2003 unreliable. I do not conclude that he has a mental illness which would have affected his ability to produce evidence between those dates. I see no reason why the situation would be any different in March 2002 ".
"Q. … All of this could have been saved, could it not Dr Zamar, if you have looked at [Mrs Eyre's] material, compliant with the your duty to the court. Having looked at it, come back and said I am no longer of the opinion that he lacks or has lacked mental capacity as defined in the Civil Procedure Rules? Do you think that is helpful to the court?
A. I would have still come and argued the case that with regards to handling the litigation, I still have concerns, even if I read this material, which is the point I have raised."
"Q. Yes, but it has got to be so impaired that he is incapable of giving instructions and understanding it. Are you saying now that you still believe he is incapable of giving and receiving instructions and advice on a case, incapable?
A. With what happened with the fracture of the arm, I think if that is the way he understands the advice, yes he would be incapable.
Q. So your evidence is now based wholly on Dr Becket and the pirate looking scar, is that right?
A. No, not solely that. My view is based on tests, the way he understands my questions to him regarding his health, the way I saw he understood my advice to him with regards to the scar. With regards to business dealings, as I mentioned earlier, there are aspects that appear preserved. With regard to him understanding and retaining information that gives me concerns, but with regard to him.
Q. You keep saying give you concerns. I could be concerned about a lot of things, but it does not mean I cannot do it. I need to know whether you are saying he is incapable of giving instructions, understanding the case or whether you are merely concerned about his having difficulties dealing with it and whether that is capable of being addressed.
A. I try to answer your question your Lordship.
Q. You keep changing the wording.
A. No, in two limbs. I said when you mentioned to me that there are concerns, the court can address them, this is in the limb of giving instructions. But when we say giving evidence, I think he is incapable of giving evidence, but I think if the court makes provisions for him, instructing lawyers making sure he understands what they tell him, then the court can manage that. That is why I qualify the first limb by having concerns, and the second by, I don't think he is able to give evidence.
Q. So you now say that he can give and receive instructions provided, in effect, there is a regime in place so that everybody can be satisfied that he understands what is going on?
A. Yes, that is what I said earlier when Mr Steinfeld said that the giving evidence is a separate matter, I was trying to separate to the two points.
Q. So the only total incapacity issue now is the ability to give evidence, is that right?
A. Yes."
CONCLUSION