1. This
is an application by James Irwin Hegan for judicial review of a provisional
assessment of compensation payable to him in respect of a period of
imprisonment which he served following his conviction for murder, that
conviction having been quashed by the Court of Appeal.
2. On
1 July 1986 the applicant was convicted of the murder of Adrian Carroll. He
was sentenced to life imprisonment. His appeal against conviction was dismissed
by the Court of Appeal on 4 May 1988. On 25 July 1991, the Secretary of State
for Northern Ireland referred his case back to the Court of Appeal and on 25
July 1992 that Court quashed the applicant's conviction. He was immediately
released. By that time, he had spent eight years and some eight months in
prison.
3. Subsequent
to his release the Secretary of State determined that the applicant had a right
to be compensated for the period of time that he had spent in custody. On 18
December 1992, therefore, Nicolas Hanna QC was appointed by the Secretary of
State to act as assessor of the compensation to be paid to the applicant and
two of his co-accused, (referred to as Mr A and Mr B).
4. At
the time of his arrest the applicant was a full time member of the Ulster
Defence Regiment. Mr Hanna concluded that, if he had not been arrested and
convicted, it was probable that he would have continued to serve in that
capacity. He calculated the pecuniary loss aspect of the applicant's
compensation on that basis and on the assumption that he would have achieved
modest promotion before discharge from the army. The pecuniary loss element of
the assessment is not under challenge in these proceedings.
5. Mr
Hanna set out his evaluation of the applicant's non-pecuniary losses in
paragraphs 15 and 16 of his assessment as follows :-
6. Mr
Hanna's assessment was challenged on two principal bases. It was suggested
that he had erred in failing to apply the authorities and guidelines
appropriate to an assessment of compensation which were current at the time
that he made his determination. He ought not to have approached the evaluation
of non-pecuniary loss on the basis that it should be identical to that made in
the case of Mr A. Secondly, it was claimed that Mr Hanna had failed to
properly reflect the difference in personal circumstances between the applicant
and Mr A in his assessment of non-pecuniary loss in the applicant's case.
7. In
so far as it is material, section 133 of the Criminal Justice Act 1988 provides
:-
8. Schedule
12 to the 1988 Act sets out the qualifications required for a person to be
appointed an assessor for the purposes of section 133. It does not provide
guidance as to how the assessor is to carry out his assessment.
9. In
Halsbury's Laws of England Volume 11(2)
Fourth
Edition Reissue
,
the authors state that in making an assessment of damages the independent
assessor applies principles analogous to those governing the assessment of
damages for civil wrong. The footnote to this passage refers to House of
Commons Official Reports 916 (5
th
series) and 87 (6
th
series) and states :-
10. It
was accepted by the respondent that these principles should guide the
assessment of compensation in the present case and that the assessment should
be analogous to the evaluation of damages for civil wrong.
11. For
the applicant it was argued that Mr Hanna had failed to make a distinction
between the personal circumstances of the applicant, who was a married man with
young children, and Mr A, who was an unmarried man in his early twenties.
While it was accepted that Mr A had lost the opportunity (during the years that
he was in prison) of meeting and marrying someone, it was suggested that this
loss was not nearly so acute as the applicant's actual loss of the society of
his family. Mr Hanna was quite wrong to suggest (as he had done in paragraph
16 of his assessment report) that there was nothing to distinguish the
applicant's case from that of Mr A, therefore.
12. Counsel
for the applicant also argued that Mr Hanna was wrong to have based his
assessment of non-pecuniary loss on that made in Mr A's case. That assessment
had been carried out some three years previously. It was well settled, counsel
submitted, that non-pecuniary loss should be assessed according to values
current at the date of assessment. He relied on the commentary on this topic
in McGregor on Damages 16
th
edition para 702.
13. Counsel
for the respondent suggested that the appropriate question to be posed was :-
"Does the adoption of an analogous system (to the evaluation of damages in
civil wrong) allow for a departure from that system for good reason?" An
analogous system, he argued, did not mean an identical system to be slavishly
followed on all occasions. The assessor in this case stated that he would
adopt an analogous approach to the assessment of damages but he explained why,
for good reason, he was departing from the rule that damages should be assessed
according to figures which obtained at the date of assessment.
14. Counsel
pointed out that the assessor had acknowledged that, if one were to apply
contemporary values, an increased award would have been made. He had taken
that factor into account, therefore, and his award could not be attacked on the
basis that he had failed to have regard to all relevant circumstances. It was
susceptible to challenge only on
Wednesbury
irrationality grounds and it could not be said that the assessor's decision to
keep the level of the award at that made to Mr A was irrational. On the
contrary, it was perfectly tenable to decide that the applicant should not
benefit from the increase in the level of general damages guidelines which had
been introduced since the award to Mr A had been made, because the delay in
making the assessment was due to the failure of the applicant and his legal
advisers to submit the necessary information and material to allow the claim to
be evaluated.
15. Counsel
for the respondent also claimed that Mr Hanna was mindful of the difference in
the personal circumstances of the applicant and Mr A. He referred to
paragraphs 9-11 of Mr Hanna's affidavit which dealt with this topic as follows :-
16. In
paragraph 16 of his assessment report, Mr Hanna stated that there was nothing
about Mr Hegan's case to distinguish it from that of Mr A. At first sight this
appears to suggest that their personal circumstances are, to all intents and
purposes, the same. But it would be wrong to take this paragraph out of
context. In earlier passages of his report Mr Hanna had dealt at some length
with the applicant's family background and the particular effect that
incarceration had had upon him. I do not consider, therefore, that it has been
established that Mr Hanna failed to be mindful of the differences between the
two in terms of their domestic situation and other personal circumstances.
17. Counsel
for the applicant argued, however, that, if he had approached the question
properly, Mr Hanna was bound to have concluded that, by reason of his enforced
absence from his wife and family, the applicant must have suffered more than Mr
A. Expressed in that way, it is clear that this argument is based on the
claimed irrationality of Mr Hanna's view that no distinction in terms of impact
on the individual could be drawn between the applicant's personal circumstances
and those of Mr A. I am quite unable to say that such a view is irrational.
One can accept that some would consider that absence from one's children,
especially during their formative years, would be a much worse experience to
have to endure than the loss of a number of years of bachelor youth but that is
a far cry from saying that the contrary view is irrational. I must reject the
applicant's submissions on this point, therefore.
18. Counsel
for the respondent accepted that Mr Hanna was obliged to make his assessment by
applying principles analogous to those governing the assessment of damages for
civil wrong, if only because he had committed himself to that course. But he
claimed that this is what Mr Hanna had done. The omission of one of the
principles of the assessment of damages did not mean that Mr Hanna's approach
could no longer be said to be analogous to common law principles relating to
the evaluation of compensation, counsel submitted.
19. Before
examining that argument, it is necessary to recall how well established is the
rule that damages should be assessed according to contemporary standards. In
Mitchell
-v- Mulholland (No 2)
[1972] 1 Q.B. 65, 83D, Widgery LJ said:-
20. Lord
Denning MR took a similar view in
Cookson
-v- Knowles
[1977]
1 Q.B. 913, 921 C/D where he said :-
21. McGregor
suggests that this approach is now "generally accepted". The principle was,
no doubt, at least partly instrumental in prompting the Judicial Studies Board
for Northern Ireland to produce (and recently revise) the booklet, 'Guidelines
for the Assessment of General Damages in Personal Injury Cases in Northern
Ireland'. I conceive this principle to be a fundamental rule in the assessment
of damages for non-pecuniary loss, therefore.
22. It
has been accepted by the respondent that, despite his aspiration to apply
principles analogous to those governing the assessment of damages for civil
wrong, this rule was not followed by Mr Hanna. It was suggested, however, that
the abandonment of this particular principle did not make the approach to the
assessment of the non-pecuniary loss element of the applicant's claim other
than ´analogous to the evaluation of general damages for civil
wrong´.
23. If
the applicant were pursuing his claim by civil action, however, he would be
entitled to claim for non-pecuniary loss at contemporary rates and his damages
would not be reduced because co-plaintiffs (in an equivalent position to his
co-accused) whose cases had been heard earlier, had been compensated on a lower
scale, appropriate at the time of assessment. Nor would he be penalised
because he or his legal advisers had been dilatory in pursuing his claim. It
is difficult to see how the approach of Mr Hanna can be said to be analogous to
common law principles, therefore. There do not appear to any other relevant
principles or rules which Mr Hanna did apply and which might be said to make
this case analogous to a civil claim. Certainly, counsel for the respondent
did not identify any other principle which governed the assessment of
non-pecuniary damages which Mr Hanna had applied.
24. In
its ordinary and natural meaning 'analogous' means 'similar or corresponding in
some respect'. I can find nothing in the way that the applicant's compensation
has been assessed which is similar to or corresponds with how it would have
been estimated if he had been a plaintiff in a civil claim. His compensation
has been linked to a scale of damages which is no longer applicable; he has had
his compensation reduced to keep it in line with an earlier award to his
co-accused and he has been penalised for the delay in submitting vouching
details to support his claim. None of these effects would have accrued, if he
had been pursuing a civil action. I cannot accept, therefore, that the
assessment of compensation has been similar to or has corresponded in any
respect with the way damages would have been assessed.
25. As
it has been accepted on his behalf that Mr Hanna had as his purpose the
application of principles analogous to those in the assessment of damages for a
civil wrong, it is unnecessary to examine whether he was under any extraneous
obligation to do so. It is clear that he set himself a task which, in my view,
he failed to achieve. What is the effect of that failure? The matter can be
looked at in a variety of ways.
26. Firstly,
it appears to me that, although he averred that he had regard to assessment of
non-pecuniary loss principles and although he may well have had these in mind,
in fact he did not have regard to them in any real sense. In this context,
having regard to the relevant principles involves more than bringing them to
mind and then ignoring them. It requires the decision-maker to take a position
on the matter which he was purporting to take into account. In other words he
must decide whether he will apply those principles or not. This cannot happen
where, as here, the decision-maker believes that he has followed an analogous
course but has not in fact done so.
27. Secondly,
it may be said that Mr Hanna had regard to irrelevant considerations
viz
the
delay in producing the material necessary to allow the assessment to be made
and the wish to make the applicant's compensation compatible with that received
by Mr A. It was suggested that it was open to Mr Hanna to omit to apply a
particular principle of damages assessment provided his approach to the
question of compensation for the applicant was generally similar. By
implication, it was being suggested that some matters which could not affect
compensation in the civil claim context may be taken into account such as the
factors just mentioned. But this argument must fail when confronted by the
finding that Mr Hanna's approach did not approximate to an assessment of
non-pecuniary damages. Indeed, the reason that it failed to do so was the fact
that he took those considerations into account. By definition, therefore, they
were irrelevant and should have been disregarded.
28. Another
way of approaching the matter is to consider the purpose of the exercise
performed by Mr Hanna. The purpose of the assessment was to apply principles
analogous to those involved in the assessment of damages and was ostensibly
designed to achieve that purpose. Indeed, as I have said, Mr Hanna believed
that this was what he had done. In fact, however, the power to assess
compensation has been exercised for different, collateral purposes
viz
to ensure that the applicant did not obtain compensation which was inflated
because of his delay and to make his award consistent with that of Mr A.
29. However
one regards it, the assessment cannot be sustained and the decision to make the
award of non-pecuniary compensation must be quashed. I will accede to the
application for an order of certiorari quashing that part of the determination
which relates to the non-pecuniary loss element of the applicant's claim for
compensation. The other determinations relating to pecuniary loss to date and
future loss are not affected by this order.