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England and Wales Court of Appeal (Civil Division) Decisions |
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You are here: BAILII >> Databases >> England and Wales Court of Appeal (Civil Division) Decisions >> Leonard & Anor v Byrt & Ors [2008] EWCA Civ 20 (29 January 2008) URL: http://www.bailii.org/ew/cases/EWCA/Civ/2008/20.html Cite as: [2008] EWCA Civ 20 |
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COURT OF APPEAL (CIVIL DIVISION)
ON APPEAL FROM THE HIGH COURT OF JUSTICE, QUEEN'S BENCH DIVISION
MR JUSTICE GRIFFITH WILLIAMS
Strand, London, WC2A 2LL |
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B e f o r e :
LORD JUSTICE WILSON
and
LORD JUSTICE MOSES
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DAVID LEONARD CAROLINE LEONARD |
Appellants |
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- and - |
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RICHARD BYRT BYRT COHEN LAURENCE JOHN BATTEN, HEATHER ELIZABETH BAKER, CAROLINE CLAIRE HOULIHAN-BURNE, EXECUTORS OF THE ESTATE OF TIMOTHY BAKER, DECEASED PAUL STAFFORD |
1st Respondent 2nd Respondent 3rd Respondents 4th Respondent |
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Mr Simon Wilton (instructed by Bond Pearce, Bristol) appeared on behalf of the First and Second Respondents.
Mr Simon Rainey Q.C. (instructed by Holman Fenwick and Willan, London) appeared on behalf of the Third Respondents.
Miss Leigh-Ann Mulcahy (instructed by Davies Arnold Cooper, London) appeared on behalf of the Fourth Respondent.
Hearing dates: 13 and 14 November 2007
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Crown Copyright ©
Lord Justice Wilson:
(a) against Dr Baker. This relates to advice which he gave in November 1999 to the effect that, apart from the patent deficiencies referable to the skeg and rudder, the remainder of the hull was sound. The appellants complain that such advice was negligently given; that it was inconsistent with his earlier, substantive report made in July 1998, which had left the door to a claim on the wider basis much more open; and that inevitably it inhibited their lawyers, in particular Mr Byrt, from taking action at that time to obtain public funding for professional examination with a view to the articulation of a claim on the wider basis in an amended pleading at a time before the delay made the claim liable to be struck out.(b) against Mr Byrt. This relates in particular to his dealings with the Legal Services Commission ("the LSC") in July 2000. At that time the Commission refused to fund the appellants' claim beyond an imminent attempt at mediation with the active defendants, namely the marine surveyors. By that time, as I will explain, the appellants had on their own initiative secured a separate, expert report on the condition of the hull by Mr McAllister, who had confirmed their allegations of its fundamentally negligent construction. The allegation against Mr Byrt is in particular that in July 2000 his attempts to secure public funding for the prosecution of the litigation to trial on the wider basis were so desultory that funding which could have been secured by the exercise of reasonable care on his part in the presentation of their case to the Commission was not secured.
(c) against Mr Stafford. This is to the effect that, when asked in July 2000 shortly to advise about an offer to settle with the appellants, which had been made in the sum of £80,000 plus costs by the defendant surveyors at the attempted mediation a few days earlier, he negligently advised them to accept it and negligently suggested that any attempt to introduce the report of Mr McAllister as evidence was almost bound to fail. The argument is that, but for that negligent advice in relation to the linked issues of the merits of the proposed settlement and of the deployability in evidence of Mr McAllister's report, further public funding for their claim would have been available to the appellants. I should add that one of the allegations of negligence introduced by Mr Shapiro at the last minute was to add to that complaint against Mr Stafford a complaint in relation to his substantive written Advice dated 10 December 1999. Such is now said to contain a negligent misunderstanding of the facts on the part of Mr Stafford, in the absence of which he would have written his Advice differently and, again, with the consequence that public funding to proceed on the wider basis would be likely to have been secured shortly thereafter.
"With regard to the quality of welding in the hull, my position is that I saw no cracks in welds other than those in way of the rudder skeg. I obtained one radiograph from a butt weld which showed that it contained a significant degree of porosity. In my view, the porosity observed would not be expected to cause failure of the weld under normal conditions of operation of the yacht. I suspect that similar porosity would be present in other welds but again would not expect this to cause failure of the welds. There may be other more serious defects in the welds which could lead to cracking in service, but I have no basis for suspecting that such defects are present. Having said that, I cannot assert that the yacht is of sound construction and that failures related to the quality of construction are unlikely to occur, nor can I confirm that the yacht will be capable of undertaking chartering work. On the contrary, the engine beds are in a condition which I consider to be unacceptable and present a risk of causing fatigue cracks which could penetrate the hull plating."
" the radiographic report on the single hull plating butt weld which has been examined indicates that the weld contained excessive porosity. Such defects would be expected to have an adverse effect on the fatigue strength of the weld. If the butt weld which has been examined is typical of those throughout the hull, this raises doubt regarding the long-term integrity of the hull structure. Also, in view of the extreme weakness of the skeg to hull connection, there must be doubt regarding the adequacy of the construction in way of the keel to hull connection."
"The suggestion has been raised from time to time that the vessel was in effect "doomed to fail" from the outset by reason of the Defendants' breaches of contract and/or negligence Clearly, if successful, such an argument would have a substantial effect upon the Plaintiffs' measure of recovery. However at present there is simply no evidence to support any "doomed to fail" argument.
As I understand the position, it is suggested that x-rays are undertaken to the vessel to verify its integrity. This expenditure could only be justified if there are reasonable prospects of establishing that the vessel was in fact "doomed to fail". The answer to this question is simply not within my expertise. It is a matter for Dr Baker and/or Mr Bowman to consider."
Mr Jacobs also stressed that it was necessary to progress matters as expeditiously as possible in order to avoid a strike-out application.
"[Dr Baker] confirmed that he had received a direct call from Mrs Leonard He found her extremely difficult who was unwilling to listen to points made to her
He had told her that the only item with which she [sic] had specific concern was the rudder and skeg. He felt that those were improperly designed and constructed. However, he told her that the remainder of the hull was OK and that he could see nothing wrong with it. He was quite happy with the remainder of the construction.
He confirmed that he would be quite happy to sail on the yacht once repairs to the skeg and rudder were undertaken."
The allegedly passive reaction of Mr Byrt to Dr Baker's conversation with him forms a preliminary part of the appellants' case against Mr Byrt.
" with the case in fact at the point where it is not far off trial with £86,000 spent, I think the Board will certainly lose a large sum of money if the claimants can take no further steps to bring the case on to trial. It is likely that the sum of money recovered at trial in damages and costs should recoup for the Board what it has so far spent and will have spent by the end of trial. In my judgment, the Board's best interests are served by amending the certificate and supporting the claim to trial."
"Mrs Leonard understandably expresses her concern about this point. It is already in the case because it is referred to by Dr Baker in the closing lines of his report; but if the point can be further developed then that would greatly help the argument about pushing further on from December 1990 the date when repairs should reasonably have been undertaken. It may also have some effect on the valuation of depreciation after repairs, if the loss of use claim is pursued. This is quite different from the "doomed to fail" argument which Mr Jacobs properly said was unsupported by any evidence. It relates instead to whether there was ground for serious concern about the yacht's safety in circumstances where the failure which had occurred raised questions about the structural integrity of the keel's attachment to the hull."
The new charge of the appellants is that, in that paragraph, Mr Stafford disclosed a negligent failure to understand the "doomed to fail" argument. In my view we should have no truck with this recent, unpleaded complaint. In fact Mr Stafford's explanation would be that, in trying in that paragraph to link the wider complaint to the existing complaint referable to the skeg and rudder, he was seeking to articulate an argument for further enquiries and for possible enlargement of the claim which might find greater favour with the LAB than an entirely new claim referable to defects throughout the hull. In my view, however, we should draw the line at this belated enlargement of the case against Mr Stafford on the simple basis that, in adding a complaint about his Advice given seven months earlier than the further advice upon which the case against him has hitherto been founded, the appellants would be attempting to mount a fresh cause of action against Mr Stafford after the limitation period referable to it had expired. I propose to say nothing further about it.
"We refer to our telephone conversation between our Mr Byrt and your Mr Wood on 13 July.
We advised you of the belief of both Mr and Mrs Leonard that, as a result of the report prepared by Mr McAllister, their yacht should be considered a total loss and their claim should as a result be considerably enhanced.
For the avoidance of doubt you reiterated the view expressed by the Appeal Committee that the mediation was the only remaining option available to Mr and Mrs Leonard. No further funding would be considered by the Commission beyond the mediation. This position was adopted despite the new report of Mr McAllister.
Please confirm that our understanding of our discussions [is] correct and that the mediation is the last chance for Mr and Mrs Leonard to finalise this matter with the benefit of Legal Aid."
Mr Wood responded in writing on the same day. He confirmed that Mr Byrt's understanding of the position was correct and that the LSC would not authorise funding beyond the mediation. The charge against Mr Byrt is that the terms of his letter dated 13 July represented an entirely desultory attempt to secure public funding on the wider basis and that his purpose was no more than to extract from Mr Wood a stick with which to beat the appellants into accepting a low settlement of their claim at the forthcoming mediation.
(a) It is at this stage of the history that Mr Shapiro's discovery of further material only working hours prior to the hearing before this court becomes relevant. The material is the first appellant's public funding certificate, marked as amended with effect from 23 September 2002, and apparently subject to two limitations, namely, first, limited to all steps up to but excluding trial but including obtaining counsel's opinion and, second, limited to costs of £20,000 excluding VAT. In that it seems that at all material times the appellants had separate certificates in identical terms, it is Mr Shapiro's submission that in September 2002 public funding must, subject to counsel's opinion, have been extended up to but excluding trial and subject to an overall limitation of £40,000. By September 2002, so Mr Shapiro concedes, any such opening of the door to progressing the claim with the benefit of public funding had come too late; his case is, however, that, in that Johnsons were able to achieve it in September 2002, albeit that it was then too late, Mr Byrt and Mr Stafford could and should have achieved it in 2000, at which time it would not have been too late.
(b) I make no criticism of Mr Shapiro when I observe that it is highly unsatisfactory for this court to be presented so late with this argument referable to the amendment with effect from 23 September 2002. Johnsons would presumably know how and why the amendment or amendments dated 23 September 2002 was or were effected. Mr Shapiro is unable to explain to us why, in the light of the LSC's repeated prior refusal to extend public funding other than for attempted mediation, it should, indeed even in advance of the anticipated supplementary report from Dr Baker, entirely change its approach. The hypothesis of Miss Mulcahy is that the conjunction of the dates of the issue of the strike-out application and of the amendment to the certificate or certificates only one week later indicates that what the LSC agreed to fund was the appellants' resistance to the strike-out application. I have to say that, assuming that Mr Shapiro is correct to conjecture that the costs limitation was £40,000 rather than £20,000, such would be a surprisingly substantial maximum sum if earmarked only for resistance to a strike-out application. Speaking for myself, I am left in doubt about the alleged significance of the amendment to the first appellant's certificate dated 23 September 2002 and am forced to reflect that the appellants have had ample time in which to present this argument properly, with evidence as to the nature of the request to the LSC which led to it. Even were we formally to admit this fresh evidence into the appeal, I could not place the weight upon it which Mr Shapiro commends to us.
"The consequence of the high incidence of unacceptable defects in the welds is that if the rudder skeg and rudder were to be repaired to an acceptable standard, there would be an ongoing risk of failure in the main structural welds of the hull. In my view, this is unacceptable in an ocean-going vessel.
The consequence of the extremely poor quality of the main butt welds in the hull structure is that if the rudder and skeg were to be repaired, there would be an on-going risk of weld failure in the hull."
Lord Justice Moses:
Sir Mark Potter, P: