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You are here: BAILII >> Databases >> England and Wales High Court (Queen's Bench Division) Decisions >> Create Financial Management LLP v Lee & Anor [2020] EWHC 2046 (QB) (28 July 2020) URL: http://www.bailii.org/ew/cases/EWHC/QB/2020/2046.html Cite as: [2020] EWHC 2046 (QB) |
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QUEEN'S BENCH DIVISION
Strand, London, WC2A 2LL |
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B e f o r e :
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Create Financial Management LLP |
Claimant |
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- and – |
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(1) Roger Lee and (2) Karen Scott |
Defendants |
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Gideon Roseman (instructed by Flint Bishop) for the Defendants
Hearing date: 24 July 2020
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Crown Copyright ©
Mr Justice Morris:
Introduction
(1) The Defendants' application that a number of clients listed in the Schedule to the Order should be removed from that Schedule.(2) The position of third party financial providers in relation to the Order, and whether they will, or are likely to, be in contempt by taking steps to transfer clients from the Claimant's agency to that of the Defendants.
(3) The Defendants' application for an order that the Claimant sends clarification letters to clients and third party providers in relation to the effect of the Order.
(4) The Defendants' application for permission to appeal against the Judgment.
Before turning to these issues in turn, I describe the chronology of events since the Judgment.
Issue (1): the Schedule to the Order
(1) The Defendants are seeking an impermissible variation of the Order. Applying the principles set out in Tibbles v SIG Plc [2012] 1 WLR 2591, they are seeking "a second bite of the cherry".(2) The Judgment concluded that the Claimant has established a sufficient case for interim relief in respect of this category of clients.
(3) The Defendants are seeking to rely on material which was known at the time of the Order; and in so far as they are relying on new evidence, that evidence is inconclusive. There has been "no material change of circumstances" nor were the facts, on which the Judgment is based, misstated.
(1) The discretion to allow a variation is curtailed by considerations of finality, of not allowing "two bites" and of undermining the concept of appeal; its successful invocation is rare: §39(i) and (vii).(2) Misstatement of facts, as a ground to exercise the discretion, may include omissions, both of facts and of argument: §39(ii) and (iv).
(3) Revisiting of orders is commonplace where there is an express "liberty to apply" in the order; in recognition of the possible need to revisit an order "in an ongoing situation": §40.
(4) Prompt recourse back to a court may be permissible to deal with something which ought to have been dealt with but which was in genuine error overlooked by the parties and the court and which can be dealt with on the materials already before the court: §§41, 42.
(1) The Defendants raised Issue (1), and the Claimant was on notice of the Defendants' position, before the Order was made. The Defendants asked that the issue be resolved prior to the making of the Order. The making of the Order first was a pragmatic solution, advocated by the Claimant and it would not be fair for the Claimant to take advantage of the solution it had put forward on pragmatic grounds.(2) The further hearing was always envisaged, was fixed immediately and has taken place promptly.
(3) The Order contains a general liberty to apply to vary at paragraph 13.
(4) Issue (1) was "overlooked" in oral argument after the handing down of the Judgment on Friday 17 July. This was understandable given the short period of time which the parties had had to consider the Judgment. By 912am on the morning of 20 July, the point was no longer "overlooked".
Issue (2): third party providers and contempt
Issue (2)(a): contempt by third parties
(1) where the third party knowingly aids and abets a breach of the injunction; in that situation there has to have been a breach of the injunction by the defendant; or(2) where the third party with knowledge of the order does "something which disables the court from conducting the case in the intended manner" and thereby interferes with the due administration of justice. That can arise independently of whether there has been any breach of the injunction. This is the principle set out in Attorney-General v Punch Ltd [2003] 1 AC 1046 per Lord Nicholls at §§4, 39-40 and 47.
Issue (2)(b): the wording of the Order (paragraph 1.2)
Issue (3): corrective letters to clients and third-party providers.
Issue (4): permission to appeal
Conclusions
(1) The Schedule to the Order will be varied by the removal of a number of clients there identified.(2) I refuse the application to make a declaration in relation to third party conduct. The wording of the Order will be modified, so as to remove the terms of paragraph 1.2, and with the inclusion of alternative wording along the lines set out in paragraph 25 above.
(3) The Claimant will give undertakings to send corrective emails to certain identified clients, providing the names of those clients to the Defendants.
(4) I have no jurisdiction to consider the Defendants' application for permission to appeal against the Judgment.
If not agreed, the form of order consequential upon this judgment and any other consequential matters are to be addressed by the parties, in the first instance, by way of written submission. For the purposes of any application for permission to appeal from this judgment, I formally adjourn the hearing.