BUSINESS AND PROPERTY COURT IN BRISTOL
PROPERTY TRUSTS AND PROBATE LIST (ChD)
IN THE ESTATE OF CLIVE MCDONALD (DECEASED)
AND IN THE MATTER OF S116 SENIOR COURTS ACT 1981 AND S50 ADMINISTRATION OF JUSTICE ACT 1985
2 Redcliff Street, Bristol, BS1 6GR |
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B e f o r e :
(sitting as a Judge of the High Court)
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(1) KAREN PEGLER (2) TAMARA SARAH STRINGER (3) SERENA JULIET GAHAGAN HULME (4) JEREMY EDWIN STANLEY GAHAGAN |
Claimants |
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- and - |
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(1) TIMOTHY BRUCE MCDONALD (2) HUGH JAMES TRUST CORPORATION LIMITED |
Defendants |
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The First Defendant in person
The Second Defendant took no part in the applications
Applications decided on paper
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Crown Copyright ©
HHJ Paul Matthews :
Introduction
Application for summary dismissal of the claim
Basis of application
"The reasons for this [ie the application to dismiss the claim] are spread throughout the attachment. Basically, I am the most qualified, honest and effective executor this estate could possibly have. The proof is that all my contacts except lawyers and Gahagans/Peglers are very happy with my efforts and this estate has been ready for probate for a year now, despite other executors' paranoid harassment and bullying. And so there is no call or room for yet another duplicative PR, particularly given that two of the Warwick Barker partners are still executors.
The only reason the Claimants want to remove me, despite my successes, is to hijack control of the Estate so they can deny me my patrimony claim. This Pegler claim is thereby effectively trying to pull off a scam."
Applicable law
"17. I turn now to consider the law. First of all, the relevant rules of procedure are CPR rule 3.4(2) and CPR rule 24.2. The former rule provides:
'(2) The court may strike out a statement of case if it appears to the court—
(a) that the statement of case discloses no reasonable grounds for bringing or defending the claim;
(b) that the statement of case is an abuse of the court's process or is otherwise likely to obstruct the just disposal of the proceedings; or
(c) that there has been a failure to comply with a rule, practice direction or court order.'
18. In addition, CPR Practice Direction 3A relevantly provides:
'1.4 The following are examples of cases where the court may conclude that particulars of claim (whether contained in a claim form or filed separately) fall within rule 3.4(2)(a):
(1) those which set out no facts indicating what the claim is about, for example "Money owed £5,000",
(2) those which are incoherent and make no sense,
(3) those which contain a coherent set of facts but those facts, even if true, do not disclose any legally recognisable claim against the defendant.
1.5 A claim may fall within rule 3.4(2)(b) where it is vexatious, scurrilous or obviously ill-founded.'
19. The latter rule provides:
'The court may give summary judgment against a claimant or defendant on the whole of a claim or on a particular issue if—
(a) it considers that—
(i) that claimant has no real prospect of succeeding on the claim or issue; or
(ii) that defendant has no real prospect of successfully defending the claim or issue; and
(b) there is no other compelling reason why the case or issue should be disposed of at a trial.'
On an application for summary judgment, the burden of proof rests on the applicant: ED&F Man Liquid Products Ltd v Patel [2003] EWCA Civ 472, [9].
20. These two methods of summarily disposing of a claim without a trial are frequently combined in the same application … . But it is clear that an application under rule 3.4 is not one for summary judgment: see eg Dellal v Dellal [2015] EWHC 907 (Fam). It is generally concerned with matters of law or practice, rather than with the strength or weakness of the evidence. So on an application to strike out, the court usually approaches the question on the assumption (but it is only an assumption, for the sake of the argument) that the respondent will be able at the trial in due course to prove its factual allegations. On the other hand, on an application for summary judgment, the court is concerned to assess the strength of the case put forward: does the respondent's case get over the (low) threshold of 'real prospect of success'? If it does not, then, unless there is some other compelling reason for a trial, the court will give summary judgment for the applicant. … "
"20. The Appellant's application before the judge sought an order pursuant to r.3.4(2)(a) that the particulars of claim disclosed 'no reasonable grounds' for bringing the claim and should be struck out and, in the alternative, a claim for summary judgment pursuant to r.24.2(a)(i) that the Respondent had no real prospect of succeeding on the claim. There can sometimes be procedural consequences if applications are made under the 'wrong' rule (which do not arise here) but, in a case like this (where the striking-out is based on the nature of the pleading, not a failure to comply with an order), there is no difference between the tests to be applied by the court under the two rules.
21. Accordingly, I do not agree with the judge's observation at [4] that somehow the test under r.24.2 is 'less onerous from a defendant's perspective'. In a case of this kind, the rules should be taken together, and a common test applied. If a defendant is entitled to summary judgment because the claimant has no realistic prospect of success, then the statement of claim discloses no reasonable grounds for bringing the claim and should be struck out: see Global Asset Capital Inc v Aabar Block SARL [2017] EWCA Civ 37; [2017] 4 WLR 16 at [27].
22. As to the applicable test itself:
(a) The court must consider whether the claimant has a 'realistic' as opposed to a 'fanciful' prospect of success: Swain v Hillman [2001] 1 All ER 91. A realistic claim is one that carries some degree of conviction: ED & F Man Liquid Products v Patel [2003] EWCA Civ 472. But that should not be carried too far: in essence, the court is determining whether or not the claim is 'bound to fail': Altimo Holdings v Kyrgyz Mobil Tel Ltd [2012] 1WLR 1804 at [80] and [82].
(b) The court must not conduct a mini-trial: Three Rivers District Council v Governor and Company of the Bank of England (No 3) [2003] 2 AC 1, in particular paragraph 95. Although the court should not automatically accept what the claimant says at face value, it will ordinarily do so unless its factual assertions are demonstrably unsupportable: ED & F Man Liquid Products v Patel; Okpabi and others v Royal Dutch Shell Plc and another [2021] UKSC 3, at paragraph 110. The court should also allow for the possibility that further facts may emerge on discovery or at trial: Royal Brompton Hospital NHS Trust v Hammond (No 5) [2001] EWCA Civ 550; Sutradhar v Natural Environmental Research Council [2006] 4 All ER 490 at [6]; and Okpabi at paragraphs 127-128.
23. The other principle relevant to the present appeal is that it is not generally appropriate to strike out a claim on assumed facts in an area of developing jurisprudence. Decisions as to novel points of law should be based on actual findings of fact: see Farah v British Airways (The Times 26 January 2000, CA). In that case, the Court of Appeal referred back to the decision of the House of Lords in Barrett v Enfield DC [2001] 2 AC 550 where Lord Browne-Wilkinson said at 557e-g:
'In my speech in the Bedfordshire case [1995] 2 AC 633, 740 – 741 with which the other members of House agreed, I pointed out that unless it was possible to give a certain answer to the question whether the plaintiff's claim would succeed, the case was inappropriate for striking out. I further said that in an area of the law which was uncertain and developing (such as the circumstances in which a person can be held liable in negligence for the exercise of a statutory duty or power) it is not normally appropriate to strike out. In my judgment it is of great importance that such developments should be on the basis of actual facts found at trial not on hypothetical facts assumed (possibly wrongly) to be true for the purposes of the strike out'.
I note that the judge cited this passage and relied on it at [64].
24. The same point arose more recently in Vedanta Resources PLC & Another v Lungowe & Others [2019] UKSC 20. That was a case where the underlying duty of care was alleged against a parent company, rather than the company involved in the day–to–day running of the mine said to have caused the pollution. Lord Briggs said:
'48. It might be thought that an assertion that the claim against Vedanta raised a novel and controversial issue in the common law of negligence made it inherently unsuitable for summary determination. It is well settled that difficult issues of law of that kind are best resolved once all the facts have been ascertained at a trial, rather than upon the necessarily abbreviated and hypothetical basis of pleadings or assumed facts'."
No reasonable grounds?
Abuse of the process?
Failure to comply with a rule, practice direction or court order?
No real prospect of success?
Application for recusal
Relevant law
"46. So far as relevant to this case, there are two important and related rules in the administration of justice. One is that no-one should be a judge in his or her own cause: Dimes v Grand Union Canal (1852) 3 HLC 759, 793. The other is, as Lord Hewart CJ once famously remarked,
'that justice should not only be done, but also must be manifestly and undoubtedly be seen to be done': R v Sussex Justices, ex p McCarthy [1934] 1 KB 256, 258.
The two rules overlap. It is obvious that, if a person judges his or her own cause, justice will not be done, or at any rate will not be seen to be done. Where a judge has a pecuniary or other significant personal interest in the outcome of the case, such as the promotion of a cause, the judge is automatically disqualified: R v Bow Street Metropolitan Stipendiary Magistrate, ex parte Pinochet Ugarte (No 2) [2000] 1 AC 119, HL. It does not matter whether the judge knew or not of the interest.
47. But the second rule goes wider. It extends beyond cases where the judge has a personal interest to cases of bias. As the Court of Appeal once put it,
'Bias is an attitude of mind that prevents the judge from making an objective determination of the issues that he [or she] has to resolve': Re Medicaments and Related Classes of Goods (No 2) [2001] ICR 564, [37].
The law distinguishes actual bias from apparent bias. The former is subjective, and deals with the judge's state of mind, while the latter is objective, and deals with the judge's conduct and the surrounding circumstances. Where a judge is actually biased in a decision, then justice has not been done. Where a decision is tainted by apparent bias, then justice is not seen to be done. Cases holding that there has been actual bias employed by a judge are rare. Most cases dealing with bias are argued and decided on the basis of apparent bias.
48. As to the law in relation to recusal by judges for bias, the claimants cited Howell v Lees-Millais [2007] EWCA Civ 720 (referring to Porter v Magill [2002] 2 AC 357, Lawal v Northern Spirit [2003] ICR 856, HL, and AWG Group v Morison [2006] 1 WLR 1163, CA). The general principle is not in any doubt. In Porter v Magill [2002] 2 AC 357, the House of Lords endorsed the approach taken by Lord Phillips MR in Re Medicaments and Related Classes of Goods (No 2) [2001] ICR 564, as follows:
'[85] … The court must first ascertain all the circumstances which have a bearing on the suggestion that the judge was biased. It must then ask whether those circumstances would lead a fair-minded and informed observer to conclude that there was a real possibility, or a real danger, the two being the same, that the tribunal was biased.'
It should also be noted that the mere fact that a judge has been guilty of shocking, even deplorable behaviour, is not enough: Harb v HRH Prince Abdul Aziz bin Fahd bin Abdul Aziz [2016] EWCA Civ 556, [68].
49. In her skeleton argument, the defendant cited only Porter v Magill. That is a case about apparent bias. But she is not a lawyer, and although in section 3 of the application notice she seeks my recusal expressly on the grounds of 'real danger of bias' (see also the evidence at section 10 of the notice), it does appear that she is also making allegations against me of actual bias. I will consider this in more detail shortly.
50. So far as concerns the 'informed and fair-minded observer', in Harb v HRH Prince Abdul Aziz bin Fahd bin Abdul Aziz [2016] EWCA Civ 556, the Court of Appeal said:
'[69] … We would however, emphasise two important points. First, the opinion of the notional informed and fair-minded observer is not to be confused with the opinion of the litigant. The "real possibility" test is an objective test. It ensures that there is a measure of detachment in the assessment of whether there is a real possibility of bias… [T]he litigant is not the fair-minded observer. He lacks the objectivity which is the hallmark of the fair-minded observer. He is far from dispassionate. Litigation is a stressful and expensive business. Most litigants are likely to oppose anything that they perceive might imperil their prospects of success, even if, when viewed objectively, their perception is not well-founded.
[ … ]
[72] Secondly, the informed and fair-minded observer is to be treated as knowing all the relevant circumstances, and it is for the court to make an assessment of these… It was held in Virdi v Law Society [2010] EWCA Civ 100 that the hypothetical fair-minded observer is to be treated as if in possession of all the relevant facts and not only those that are publicly available…'
51. So the hypothetical informed and fair-minded observer knows all the relevant facts, whether publicly available or not, and has a perception of the case which is not that of the litigant, but is instead more objective and dispassionate. That is the standard to be applied.
52. But the court must apply these rules not only for the protection of the litigant against whom bias or apparent bias may operate, but also for the benefit of the other litigants involved, and indeed the wider public. This is because in our system litigants are not permitted to choose their judges. As Chadwick LJ once said:
'But it is important for a judge to resist the temptation to recuse himself simply because it would be more comfortable to do so. The reason is this. If judges were to recuse themselves whenever a litigant -- whether it be a represented litigant or a litigant in person -- criticised them (which sometimes happens not infrequently) we would soon reach the position in which litigants were able to select judges to hear their cases simply by criticising all the judges that they did not want to hear their cases. It would be easy for a litigant to produce a situation in which a judge felt obliged to recuse himself simply because he had been criticised -- whether that criticism was justified or not': Dobbs v Tridos Bank NV [2005] EWCA 468; see also Re JRL, ex parte CJL (1986) 161 CLR 342, 352, per Mason J.
So the judge asked to recuse him or herself should only do so where the case is properly made out. Another way of putting this point is that the rule is a rule of law, and confers no discretion on the judge. If the case crosses the line, the judge must not hear the case. If it does not do so, the judge cannot decline to do so."
Basis of application
(1) Dealing with the defendant's Beddoe application only at the "last minute";
(2) Refusing that application;
(3) Stating in paragraph 4 of my judgment that "the first defendant entered a caveat, which he has refused to remove", which the defendant says is untrue, on the basis that he has never been asked to remove it;
(4) The reference in the same paragraph to the original second defendant's being "a professional executor", which he says implies a bias against him as a lay executor;
(5) Reciting that the second defendant did not wish to be involved in the estate and making a witness statement in support of the claim, which he says amount to "talking up" the professional executor;
(6) Referring in paragraph 8 to the defendant's lodging a notice of appeal against part of the order of 1 October 2021, on the basis that "the emphasis is in the wrong place";
(7) Stating in paragraph 18 that it is not the function of court staff to give litigants advice;
(8) Citing (in paragraph 22) from the defendant's email to Zacaroli J of 1 July 2022, in which the defendant complains about the judge's decision to refuse the defendant permission to appeal against the order of 1 October 2021, and also my referring to his email as "very long";
(9) Declining in paragraph 31 to adjourn the trial date on medical grounds;
(10) In the defendant's words, "the tone and ill will displayed toward me for persisting with my very few efforts at redress of unsound judgments and my gentle follow-up on the court's tardiness and dysfunction";
(11) Following my citation from paragraph 40 of the judgment of Leggatt J in Nowak v The Nursing and Midwifery Council [2013] EWHC 1932 (QB), my commenting at paragraph 41 that "Although not everything that Mr Justice Leggatt said there applies to the case of the first defendant, much of it does. I have no doubt that the first defendant sincerely believes in the rightness of his cause … ";
(12) My comment in paragraph 41 of the defendant that "The problem is that he does not take No for an answer";
(13) Again in the defendant's words, my "groundless and superfluous issuance of a punitive civil restraint order against" him.
Assessment
"Because it is self-evident that my cause is right. I am a Chartered Accountant with an Institute law prize and lots of forensic auditor experience. I do know what is going on here. The Claimants are working on a scam. And the judges so far have only myopic vision. They haven't noticed the game plan. At the moment we just have lawyers – at all levels – helping lawyers".
"As proven above, this is totally untrue. They all have very significant merit. It is those reading them who are apparently challenged and have shaky merit and wear blinkers."
"Tim McDonald LSE B.Sc (Econ), De Facto C.A. with Law Prize
Retired Publishing CFO, VP & Secretary Treasurer.
Retired KPMG, E&Y Forensic Auditor
Proponent of civis Romanus sum".
Timing of the trial/adjournment
Conclusion