Criminal Justice and Courts Bill

Hywel Francis Excerpts

Tuesday 17th June 2014 Commons Chamber

[Robert Neill]

I am grateful, and that provides a suitable point for me to conclude. The costs apply not just to individual litigants and therefore to companies and local authorities, because the cost to a local authority is ultimately a cost to the taxpayer, and then there is the opportunity cost to the planning system and the court system that comes from bringing needless judicial reviews. There is nothing in the Bill to prevent a meritorious claim from coming forward and being heard, but it provides some checks and balances in the matter—a reminder that the common law does not exist independently of the House. Ultimately, accountability lies here through Parliament. The judiciary has an important role to play in interpreting the will of Parliament.

Occasionally, I look at judgments in judicial review cases and gain the impression that one or two of the senior judiciary have rather concluded that the common law somehow exists in isolation. The development of case law is important, as suggested, but it should happen within the framework set by this democratically accountable House. We need to redress the balance to ensure that while the House is accountable, a democratically elected local authority is the right primary accountable body in its sphere of competence. I thus commend both the planning and the judicial review provisions.

[Dr Hywel Francis (Aberavon) (Lab)]

It is a pleasure to follow the hon. Member for Bromley and Chislehurst (Robert Neill), not so much for the content of his contribution as for its tone and humour. I am afraid that I will not be able to match his humour. He beat me to the punch by telling us about his friendship and legal partnership with my distinguished predecessor, Lord Morris of Aberavon. I suspect from the tone of the hon. Gentleman’s contribution that he must have learned it at the feet of my predecessor. The general tone of this debate has been very constructive, so I hope the Minister will respond positively to the constructive contributions.

I particularly commend the contributions of my hon. Friend the Member for Rotherham (Sarah Champion) and of the hon. Member for Cambridge (Dr Huppert)—I was about to call him my hon. Friend—who contributed progressively and constructively to the work of my Joint Committee on Human Rights earlier in this Parliament.

I shall propose my own amendments 42 and 44 and speak in support of amendments 24 to 32 and 36, tabled in the names of my hon. Friends the Members for Hammersmith (Mr Slaughter) and for Barnsley Central (Dan Jarvis) and recommended by the Joint Committee on Human Rights, which I chair. Let me remind everyone that the Joint Committee is made up of members of all parties and that the majority of its members are from the coalition parties. When a report from our Committee is unanimous, it means that it was supported by Government Members.

My Committee has done a lot of work on the implications for access to justice of the Government’s proposals to reform both legal aid and judicial review, and we continue to take evidence on these important matters. Earlier this year, we concluded a detailed inquiry into the Government’s judicial review reforms. Our report, which came out in April, pointed out—as did my hon. Friend the Member for Hammersmith in this debate—the crucial importance of judicial review to upholding the rule of law in this country. It is, I believe, one of the fundamentals that seems to be in everyone’s list of “British values”—much discussed of late.

Amendments 42 and 44 were recommended in my Joint Committee’s report. They are necessary to ensure that the Bill does not go too far in curtailing one of the most important developments in recent years, which has increased effective access to judicial review to hold the Government to account. The courts have carefully developed costs capping orders, which are also known as protective costs orders, to ensure that meritorious challenges to the legality of Government action are not prevented by the fear of a crippling bill for costs. In appropriate cases, they remove the disincentive to litigation of the ordinary “winner takes all” costs rules.

Corner House Research, a non-governmental organisation with expertise in countering bribery and corruption, brought judicial review proceedings against the Department of Trade and Industry for not doing enough to counter bribery and corruption through its export credits guarantee scheme. The courts believed that the legal challenge raised important issues of public interest that needed to be decided. The case was, however, brought only because of a costs capping order limiting the costs exposure of this important NGO.

The Government are concerned that the test for providing such costs protection has become increasingly flexible, as a result of which costs capping orders are being granted too frequently. The Lord Chancellor and Secretary of State for Justice said that they seem to have

“become the norm rather than the exception”.

According to his way of thinking, a lot of well-off campaign groups are bringing cases safe in the knowledge that their costs exposure will be kept down by a costs capping order. My Committee looked into this issue in detail and found the Lord Chancellor’s concern to be exaggerated. The senior judiciary, in its response to the consultation, also doubted the Lord Chancellor’s claim. Other than in environmental cases, where a special cost regime applies because of the UK’s EU obligations, the judges’ experience is that the use of costs capping orders is not widespread.

We welcome much of what is in the Bill on costs capping, including the Government’s decision to put costs capping orders on a statutory footing and to enshrine the common law principles into a statutory code. This seemed to my Committee to be a welcome recognition in principle of the importance of costs capping orders as a way to ensure practical and effective access to justice. We also found that the new statutory code in clauses 59 and 60 is a broadly accurate reflection of the principles developed by the courts, and for the most part merely reflects the restrictions on the availability of costs capping orders that are already applied by the courts.

In one very important aspect, however, the Bill includes a restriction that has the potential to limit very severely the practical effectiveness of costs capping orders. Clause 59(3) provides that a costs capping order may be made by the courts

“only if leave to apply for judicial review has been granted.”

The Government’s justification for this restriction is that only cases with merit should benefit from cost capping orders, and the test of whether a case has merit is whether it is granted permission to proceed by the court. In practice, however, this provision seriously undermines the utility of costs capping orders and may lead to meritorious judicial reviews not being brought because the cost risk is too great.

[Heather Wheeler]

Can the hon. Gentleman provide any examples of where that might have occurred? I am finding it very difficult, and I think the taxpayers of South Derbyshire will find it very difficult, to think that people’s rights to open justice are being curtailed in any way when we are not seeing meritorious cases that ought to come to court. Judicial reviews have got out of hand, my friend.

--- Later in debate ---

[Dr Francis]

That is not the view of my Committee. I commend our report to the hon. Lady, if she has not read it, because it deals with this point very thoroughly.

Pre-permission costs in judicial review proceedings are often substantial: the Bingham Centre for the Rule of Law told our inquiry that they may comfortably exceed £30,000, and that restricting the availability of costs capping orders until permission is granted will in practice undermine their usefulness in ensuring effective access to justice. It is worth repeating the words, which we quote in our report, of the Bingham Centre on judicial review proceedings:

“The risk of unknown and potentially substantial pre-permission costs is a risk that those who would otherwise qualify for costs protection cannot possibly take. If a PCO cannot be obtained to protect against such a costs risk, very many claims with substantial wider public interest will not be brought. A PCO that cannot be obtained until it is too late to prevent the chilling effect”—

the chilling effect—

“of uncertain and unlimited costs exposure is a pointless PCO: it does not achieve the aim of enabling access to justice for those who cannot expose themselves to substantial costs risk.”

The whole point of costs capping orders is that they provide assurance to litigants in advance, before the defendants to judicial review proceedings start running up costs that, without a costs capping order, the claimant may have to pay. To ensure that costs are not a barrier to upholding the rule of law, that protection should be available in relation to costs incurred at the very outset of the proceedings, before permission is granted. That is what amendment 42 is designed to achieve.