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England and Wales High Court (Administrative Court) Decisions |
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You are here: BAILII >> Databases >> England and Wales High Court (Administrative Court) Decisions >> Collins v The Director of Public Prosecutions [2021] EWHC 634 (Admin) (19 March 2021) URL: http://www.bailii.org/ew/cases/EWHC/Admin/2021/634.html Cite as: [2021] WLR 3391, [2021] 1 WLR 3391, [2021] WLR(D) 228, [2021] EWHC 634 (Admin) |
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QUEEN'S BENCH DIVISION
ADMINISTRATIVE COURT
DIVISIONAL COURT
Strand, London, WC2A 2LL |
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B e f o r e :
and
MR JUSTICE LINDEN
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JOHN KENNETH COLLINS |
Appellant |
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- and - |
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THE DIRECTOR OF PUBLIC PROSECUTIONS |
Respondent |
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Philip Stott and Anna Keighley (instructed by Crown Prosecution Service) for the Respondent
Hearing dates: 9 March 2021
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Crown Copyright ©
Lord Justice Edis:
i) Each order was to be satisfied by the payment of the assessed value of the identified realisable assets of each defendant.
ii) In addition, each defendant was ordered to pay whole of the sum representing "hidden assets", namely £5.75m.
iii) The sum of £5.75m would be reduced in the case of each defendant by the sums, if any, paid by any of them in respect of it.
iv) The total term in default took into account the total sum in the order against each defendant, but at the enforcement stage the court is required to adjust it to reflect payments under (i) and (iii) by section 79(2) of the Magistrates' Courts Act 1980. There is no issue before us about how that will work in practice.
The stated case
"Was I wrong in law, in declining to endorse the warrant of commitment to prison, in respect of John Kenneth Collins for non-payment of his confiscation order, that any term of imprisonment served by a person in default of payment of a confiscation order made in relation to the same joint benefit should reduce the term of imprisonment to be served by John Kenneth Collins for his default of payment?"
"Apart from the Appellant, Mr Perkins is dead, Mr Jones did not challenge the order and is serving the default term and Mr Reader was accepted by the prosecution not to be fit and able to participate in enforcement proceedings. On the 1st October 2020 Mr Seed [a recently convicted fifth defendant] was made subject to a proceeds of crime order by HHJ Kinch QC at the Crown Court sitting at Woolwich and given 3 months to pay in full."
The District Judge's ruling
"Subsequent to the conviction and sentence of Mr Collins, Michael Seed has been convicted of conspiracy to burgle and sentenced to 10 years' imprisonment. Items of jewellery were found in his possession to the value of £143,129.74. I understand that some 90% of this property has been identified as items stolen in the burglary or consistent with such items. To date £110,324.50 of the jewellery been realised at auction. A confiscation timetable has been ordered in respect of Mr Seed that will be heard sometime after 15 November 2019. Mr Collins has to date paid £591,059.29. The total paid towards the order is £738,334.35p. Interest accrues at approximately £1,543,93. The amount outstanding is £7,583,560.64p which is some 98% of the order of £7,635,233.31. Payment has been made in respect of part of the identified assets and no payment has been made in respect of the jointly obtained hidden assets."
i) Is satisfied that the default is due to the offender's wilful refusal or culpable neglect; and
ii) Has considered or tried all other methods of enforcing payment of the sum and it appears to the court that they are inappropriate or unsuccessful.
"I am further satisfied that there has been wilful refusal and culpable neglect with regard to the 'hidden assets'. Mr Collins has made no payment towards this sum. He has not assisted in the realisation and recovery of any of this property. I do not accept the submissions made on behalf of Mr Collins with regard to the approach to the enforcement of this sum. The default periods are individual. It is quite wrong to see this as a default period which should be shared across all five defendants due to the joint and several liability approach as per Ahmad & Fields.
"In my view the defence seek to muddle the enforcement procedure with the sum that is due as the 'hidden assets.' It is not a case of the state having 'multiple sentences' for the same sum of money. I am satisfied that the period in respect of each defendant was set by HHJ Kinch QC at the Woolwich Crown Court that the enforcement of that order in respect of each defendant is appropriate and proportionate. The term which is to be served is not a term of imprisonment for the offence but the default period for enforcement of the order."
"In a hidden assets case, the duty is not just to pay the order, but by implication also to take such steps as are necessary to find and recover the assets, or to assist the authorities to do so: R. v. (oao Johnson) v. Birmingham City Magistrates' Court [2012] EWHC 596 (Admin)"
Submissions
"When faced with an issue of interpretation of the 2002 Act, the court must, of course, arrive at a conclusion based both on the words of the statute and on legal principles, but it is also very important to bear in mind the overall aim of the statute, the need for practicality, and Convention rights. The overall aim of the statute is to recover assets acquired through criminal activity, both because it is wrong for criminals to retain the proceeds of crime and in order to show that crime does not pay. Practicality involves ensuring that, so far as is consistent with the wording of the statute and other legal principles, the recovery process, both in terms of any hearing and in terms of physically locating and confiscating the assets in question, is as simple, as predictable, and as effective, as possible. Defendants are entitled to their Convention rights, in particular to a fair trial under article 6 and are only to be deprived of assets in accordance with A1P1."
Discussion
i) It would be disproportionate to require the defendant to pay that amount, see section 6(5)(b) which was added by the Serious Crime Act 2015 c. 9 Sch.4 para.19 with effect from June 1, 2015 in order to codify the law as explained in Waya [2012] UKSC 51, [2013] 1AC 1028; or
ii) The defendant has proved that the available amount is less than the benefit from the conduct concerned, see section 7.
i) The liability of joint offenders for a "hidden assets" order is joint and several. Each is liable for the whole order, but entitled to credit for sums actually paid by other debtors liable in the same sum.
ii) Therefore, the liability of joint offenders to serve the default term should be treated in the same way. In the event of non-payment by A, he is liable to serve the whole term. But if part of that term has been, or is to be, served by another offender, then the term should be reduced to that extent in the case of A.
"(4) A person benefits from conduct if he obtains property as a result of or in connection with the conduct.
…
(6) References to property or a pecuniary advantage obtained in connection with conduct include references to property or a pecuniary advantage obtained both in that connection and some other.
(7) If a person benefits from conduct his benefit is the value of the property obtained."
"Several liability arises when two or more persons make separate promises to another, whether by the same instrument or by different instruments. Thus if A and B covenant with C that they will each pay him £100, each is liable to pay £100; their promises are cumulative and payment by one does not discharge the other.
Joint liability arises when two or more persons jointly promise to do the same thing. There is only one obligation, and consequently, performance by one discharges the others. Joint liability is subject to a number of strict and technical rules of law which are discussed in the paragraphs that follow.
Joint and several liability arises when two or more persons in the same instrument jointly promise to do the same thing and also severally make separate promises to do the same thing. Joint and several liability gives rise to one joint obligation and to as many several obligations as there are joint and several promisors. It is like joint liability in that the co-promisors are not cumulatively liable, so that performance by one discharges all; but it is free from most of the technical rules governing joint liability.
It should be emphasised that the above definitions—and the treatment in this chapter—focus on the standard contractual situations where the issues of several, joint, or joint and several liability arise. Particularly in mind is where the contractual liability is to pay an agreed sum (that is, a debt). Cutting across those definitions is joint and several liability in its traditional "tort" sense of wrongdoers acting independently to cause the same damage to the same claimant: and a wrongdoer for these purposes can include a contract-breaker as well as a tortfeasor. So if the same loss is caused to C by D1's breach of contract and D2's tort, D1 and D2 are jointly and severally liable to C. This will mean that D1 and D2 are each liable for the whole of C's loss albeit that, if one defendant pays a disproportionate sum to the other, contribution can be recovered from the other defendant under the Civil Liability (Contribution) Act 1978.
"In R v Porter [1990] 1 WLR 1260 the defendant and a codefendant pleaded guilty to drug offences. At a hearing to determine to what extent they had benefited from their drug trafficking the trial judge found as a fact that the two had jointly benefited in accordance with section 1(2) of the 1986 Act, that the extent of that benefit was £9,600 and that they should jointly and severally be ordered to pay that sum. The issue before the Court of Appeal, at p 1262, was whether the confiscation order could properly be joint and several, or whether it should be several, with each of them being required to pay £4,800. It was held, at p 1263, that the Act did not contemplate joint penalties, that the court must, as between co-defendants, determine their respective shares of any joint benefit that they might have received as a result of their drug trafficking, and that in the absence of any evidence the court was entitled to assume that they were sharing equally. So, the orders were quashed and several orders for £4,800 substituted in each case. This might, as later authorities show, have been a proper disposal had there in fact been no evidence of the parties' shares in the proceeds. But the judge's finding, not challenged on appeal, was that the proceeds had been received jointly. That being so each had received a payment or other reward in the full sum of £9,600 and orders in that sum should have been made against each of them severally." (emphasis added)
"The word "obtain" should be given a broad, normal meaning, and the non-statutory word "joint", referred to by Lord Bingham in R v May [2008] AC 1028, paras 17, 27-34, should be understood in the same non-technical way."
"Thirdly, there will be obvious difficulties in applying established legal principles to the allocation of liability under the 2002 Act, as the rules relating to matters such as acquisition, joint and several ownership, and valuation of property and interests in property, and the rights and liabilities of owners, both as against the world and inter se, have been developed by the courts over centuries by reference to assets which were lawfully acquired and owned."
" In so far as technical English property law concepts are concerned, it may be more accurate to refer to several conspirators acquiring possession in common of any asset or money, rather than jointly owning the asset or money. However, rather than invoking English property law concepts, it is more appropriate to treat such conspirators as obtaining the asset or money together, which has the same meaning as "jointly", provided that the latter word is understood in its ordinary English, and not its technical, legal sense. "Obtain" is the statutory word, and "joint" reflects the criminal enterprise. While some aspects of English property law in connection with ownership may be esoteric, there is nothing remote from daily life about two burglars jointly (i.e. together) obtaining a television. The burglars do not become the owners of the television, and the argument about them being "joint owners" or "owners in common" proceeds on a wrong premise. Each burglar has usurped the rights of the owner."
"If the defendant serves a term of imprisonment or detention in default of paying any amount due under a confiscation order, his serving that term does not prevent the confiscation order from continuing to have effect so far as any other method of enforcement is concerned."
Conclusion
Mr. Justice Linden:-