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FAMILY DIVISION
Strand, London, WC2A 2LL |
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B e f o r e :
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BSA |
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and |
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NVT |
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Dorian Day (instructed by Russells Solicitors) for the Respondent
Hearing date: 31 March 2021
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Crown Copyright ©
This judgment was delivered in private. The judge has given leave for this version of the judgment to be published on condition that (irrespective of what is contained in the judgment) in any published version of the judgment the anonymity of the children must be strictly preserved. All persons, including representatives of the media, must ensure that this condition is strictly complied with. Failure to do so will be a contempt of court.
Mr Justice Poole:
Introduction
a. In 2018 the mother sought relief under Schedule 1 of the Children Act 1989, which claim was resolved by agreement recorded in the court order of DDJ O'Leary at the Central Family Court on 11 December 2018. The case number was ZC18P04019. Within the whole agreement, the mother and children would continue to live at the family home until completion of the purchase of a new home. The father agreed to make a housing fund of £2.75m available for the purchase of a new home for the mother and the children which the mother would be entitled to occupy until the earlier of the daughter reaching the age of 18, the mother's death, the deaths of both children, or further order of the court. The father would pay the outgoings on the family home, £1000 per week for maintenance, £30,000 per annum towards the cost of a nanny until The daughter was 16 years old, school fees for both children, a lump sum of £200,000 to the mother in instalments, the last of which was due on 24 December 2020, and £77,875 in outstanding fees to the mother's previous solicitors, Russells, on completion of the purchase of the new home.
b. On 13 February 2019 DDJ O'Leary made a further order reflecting further agreement that the father would purchase the new home and simultaneously with the purchase the mother would enter into a tenancy agreement with the father allowing her and the children to occupy it rent free. It seems that no terms were agreed or ordered as to what should happen in default of the purchase of a new home. As it is no home has been purchased and, as will be seen, the parties have contested payments, child arrangements, and the mother's continued occupation of the family home.
c. By application of 7 October 2019, the mother sought to enforce DDJ O'Leary's first order by way of Judgment Summons due to the father's alleged non-compliance with a number of the terms of the order but primarily the provision of a housing fund for £2.75m. She also made an application for an interim costs allowance to fund the legal costs of her application and proceedings under the Children Act 1989 for section 8 orders.
d. The father then brought section 8 proceedings himself seeking child arrangements orders. This was case number ZC19P01032. The date of the application was 1 August 2019.
e. On 17 September 2019 HHJ Oliver ordered that by no later than 4pm on 3 October 2019 the father shall serve a statement exhibiting his updating financial disclosure. On 8 October 2019 HHJ Oliver noted that the father had failed to comply with that order. He was ordered to serve the attachments referred to in the document exhibited to his statement dated 3 October 2019 by 4pm on 22 October 2019 and to serve updating financial disclosure by the same time and date, with a list of assets included in the order in relation to which disclosure was required. HHJ Oliver also attached a penal notice to the order of DDJ O'Leary dated 11 December 2018 (he did not restrict the penal notice to specific provisions, so it appears to apply to the whole of the order). HHJ Oliver made interim costs allowance orders against the father with payment by three instalments as specified in his order, the total amount being £45,967 and the last date for the final instalment being 2 December 2019.
f. The father appealed the order and, by her order of 30 October 2019, Mrs Justice Knowles stayed the order of 8 October 2019 save that the father had to comply with paragraphs 12 and 13 of the order, being the service of the attachments to his statement and updated financial disclosure, by 22 October 2019. The appeal was refused on paper. The father sought to renew at an oral hearing which was eventually heard by Mr Justice Williams on 11 October 2020 when he dismissed the application for permission and made an order for costs against the father, summarily assessed in the total sum of £25,500 payable within 14 days. The stay on the order of 8 October 2019 was discharged.
g. Meanwhile, on 22 November 2019, HHJ Oliver adjourned a hearing due to take place on 29 November 2019 in the child arrangements case. He refused the father's permission to appeal. He was invited to recuse himself by the father. He declined to do so and refused permission to appeal against that decision. The children were by now parties to the child arrangements application. A section 7 report from NYAS was to be filed and served.
h. On 20 January 2020 HHJ Oliver was faced with new applications including the father's for an occupation order, NYAS' application
for an urgent hearing, the mother's application for further legal costs funding, and the mother's application for a specific issue order for return of the children from Switzerland after she alleged that the father had not returned them after an agreed date. The father application for an occupation order was adjourned generally with liberty to apply. Directions were given.
i. Further directions hearings followed. On 8 July 2020 HHJ Oliver adjourned the mother's further costs allowance application generally with liberty to apply.
j. In a judgment delivered on 16 October 2020, following a hearing on 1
September 2020, HHJ Oliver made a child arrangements order with the son to live with the father, the daughter to live with the mother, and each child to spend time with the parent with whom they were not living. The father's application for an occupation order was dismissed. The mother's application for a judgment summons in respect of the Schedule 1 order was to be listed for a directions hearing on 1 December 2020. The mother's application for a further costs allowance was listed for directions on the same date. The order records, "no order as to costs on the section 8 Children Act 1989 matter, save for legal aid taxation of the publicly funded parties' costs." There was no mention of costs of the father's application for an occupation order.
k. The mother was then served with notice to quit by the Trust, legal owners of the property that she and the children reside in. She therefore made a without notice application under s36 of the Family Law Act 1996 to protect herself from being evicted. That relief was granted and then confirmed at an inter partes hearing where The Trust was also represented, on 1 December 2020. At that hearing HHJ Oliver also listed the mother's application for a judgment summons to be heard on 11 January 2021. HHJ Oliver's order noted that he had declined the father's application for the judgment summons to be heard by a different judge.
l. The father appealed against the order of 1 December 2020 (which had been approved by HHJ Oliver on 23 December 2020), including the granting of relief to the mother under s. 36 of the FLA 1996. I gave directions in the appeal and refused to stay the proceedings pending determination of permission to appeal.
m. On 11 January 2021 HHJ Evans-Gordon heard the case. The mother had applied for a second judgment summons on 15 December 2020 in respect of the father's termination of payment in respect of the children's nanny which he had agreed and had been ordered to pay in the orders before DDJ O'Leary in 2019. She ordered a further hearing on 21 January 2021 to give directions on that application for a judgment summons. HHJ Evans-Gordon granted the mother's application for a costs allowance being £88,796.37 payable in two equal lump sums, the second being payable on 22 February 2021. This was said to be "a costs allowance by way of historic costs incurred by representation by Counsel and Messrs Russells Solicitors in the proceedings to date." She also ordered three lump sums of £14,000 to be paid by the father on 31 March, 30 April and 31 May 2021, by way of costs allowance for the "projected sum from the date hereof until the conclusion of the proceedings". She made costs orders on the mother's s.36 Family Law Act application in the summarily assessed sum of £8,767.80, payable within 14 days, and the father's failed exclusion order application in the summarily assessed sum of £25,939.72 payable within 14 days.
n. The father appealed these orders, and directions were given by Mrs Justice Judd on 2 February 2021. This court then becoming aware that there were two extant appeals, on 16 February 2021 I ordered that the two appeals be heard together and reserved to me. On 5 March 2021, I made a consent order giving directions for the hearing of the mother's application for a Hadkinson order. That application has come before me today.
o. The hearing of the two judgment summonses, now consolidated, is listed for final hearing on 8 July 2021 for two days before HHJ Oliver.
The Legal Framework
"It is a strong thing for a court to refuse to hear a party to a cause, and it is only to be justified by great considerations of public policy. It is a step which a court will only take when the contempt itself impedes the course of justice and there is no other effective means of securing his compliance".
[2017] EWCA Civ 21 at [3] Lord Justice Ryder said,
"Such an order is draconian in its effect because it goes directly to a litigant's right of access to a court. It is not and should not be commonplace. As developed in case law, it is a case management order of last resort in substantive proceedings (for example for a financial remedy order) where a litigant is in wilful contempt rather than a species of penalty or remedy in committal proceedings for contempt."
"1. The respondent is in contempt.
2. The contempt is deliberate and continuing.
3. As a result there is an impediment to the course of justice.
4. There is no other realistic or effective remedy.
5. The order is proportionate to the problem and goes no further than necessary to remedy it."
'[65] I conclude that non payment in breach of a matrimonial order to pay money is in itself a contempt of court. There is in my judgment, no requirement that it should be shown to have been culpable, i.e. that the non paying party had the means to pay. I disagree with the conclusion of Ryder J to the same effect and in so doing I take into account as persuasive the views expressed by the Court of Appeal in Baker v Baker (2) [1997] 1 FLR 148. I repeat that in Gower v Gower (1938) P106 the father's non payment of the costs was specifically held not to be wilful, yet he was described by the court as being in contempt by the mere fact of such non payment.
[66] In my judgment therefore questions of culpability come into play as regards the court exercising its discretion as to whether and how to act on the contempt so established."
Evidence
a. Breach of paragraph 4(ii) of the order of DDJ O'Leary providing for the father to make a housing fund of £2.75m available for the purchase of a new home for the mother and the children. She says that this provision also triggered payment of lump sums and legal costs on behalf of NVT and periodical payments for the benefit of each child. The father denies this breach. I have no documentary evidence relating to payments, non-payments, requests for payments, or communications about the purchase of a new house. The difficulty is that there was no timetable ordered for the making of a housing fund and because the new house has not been purchased, the other obligations have not been triggered, and so the father is not obviously in breach. During submissions Mr Day for the mother accepted there was not fixed date for this provision and did not press a case that there had been a breach of this part of the order.
b. Breach of paragraph 5(ii) of the order of DDJ O'Leary in that the father has failed to pay £1,000 a week whilst NVT remains living at the family home. The father does not deny this alleged breach in his statement but says that it is a matter that will be determined by the court on the final hearing of the judgment summons in July 2021. I have not been provided with any statement of arrears in respect of these payments. The order was made on 11 December 2018 and so the total payments of £1,000 per week should now have amounted to £119,000. The mother has not told the court the amount that has not been paid. It is said that it is roughly 50% (which would be about £60,000), but that is bare assertion. In submissions on behalf of the mother Mr Day told me that the arrears are £26,000 and that the mother has deposed to that, or a similar amount, in the lower court. I do not have that evidence. It behoves the applicant to establish the conditions for the making of a Hadkinson order.
c. Breach of paragraph 5(iii) of the order of DDJ O'Leary for failure to pay £30,000 per annum for a nanny for The daughter. The father calls Ms Ellinas' statement on this "blatant lies", saying that he has always paid for a nanny when one has been employed, but refused to pay for a cleaner. I note that the order was for the father to pay the nanny directly and was conditional on the mother providing a copy of the
nanny's employment contract. I have no documentary or other evidence to show that the father has not complied with the requirements of the original order in this respect. Mr Day says there is £5,000 outstanding but there clearly is a dispute about whether this amount is due and owing.
d. Breach of the order of HHJ Evans Gordon of 11 January 2021 in making payments for costs and costs allowances under paragraphs 4, 5 and 6 of that order in the total sum of £123,503. The father says that these are the very orders he seeks permission to appeal. He has not, however, applied for a stay in relation to those orders and he accepts that the monies ordered to have been paid by now, have not been paid. Those include the sums payable as historic costs, and the costs under paragraphs 5 and 6 in respect of the mother's application for relief from eviction and the father's order for an exclusion order. The three sums of £14,000 in respect of projected costs have not, before the first day of the hearing, become payable. In the absence of a stay, they must be paid.
Discussion and Conclusions
a. £88,796,37 in respect of "historic" costs. These are not referable specifically to either of the orders referred to at 12(b) and (c) below.
b. £8,767.80 in respect of the summarily assessed costs of the mother's s.36 FLA 1986 application. The determination of that application by HHJ Oliver is under appeal.
c. £25,939.62 in respect of the summarily assessed costs of father's application for an exclusion order which was dismissed by HHJ Oliver on 1 September 2020 (wrongly recorded on the order as 1
September 2021). There is no appeal against that decision of HHJ Oliver however he made no mention of the costs of the father's dismissed application. By r.44.10 of the Civil Procedure Rules, where the court makes an order that does not mention costs then the general rule is that no party is entitled to costs. The father appeals the costs order for £25,939.62 made by HHJ Evans Gordon on the basis that she should not have summarily assessed costs when no order for costs had been made by HHJ Oliver. I am not now determining the appeal, but merely noting the history.
the applicant mother, and I am not satisfied that the father is in contempt in those respects.
respectively. These sums were ordered to be paid to the mother "via her solicitors Vardags". Outstanding fees to Vardags as of 11 December 2018, on completion of the purchase of the new home, were to be deductible from the two sums of £50,000. The new home has not been purchased and so no deductions have been required.
The timing of the permission to appeal hearing allows for amendment of grounds of appeal and skeleton arguments prior to the hearing and should allow for the resolution of the appeals prior to the final hearing before HHJ Oliver. It will be a matter for him how to deal with the PTR given that the outcome of the appeal will be pending at that time.