SFO urged to bolster evidence disclosure practices, Lack of action to control AI puts copyright at risk, Aviva sued over definition of flooding
COMMERCIAL LAW
SFO urged to bolster evidence disclosure practices
The Serious Fraud Office (SFO) has made progress in reforming how it manages evidence disclosure in its high-profile cases, but more government funding is needed to help fix the problems, a report from HM Crown Prosecution Service Inspectorate has found. Issues with disclosure have appeared in a number of the SFO's prosecutions, sometimes with huge consequences. The fraud trial of two former Serco executives collapsed in April 2021 after the SFO failed to disclose evidence to the defendants’ lawyers. The report suggests that the SFO should introduce an independent disclosure review process as it looks to address long-standing problems with its evidence analysis.
Lack of action to control AI puts copyright at risk, say Lords
The Times??
The House of Lords communication and digital committee has criticised the government's approach to protecting copyright, stating that it is inadequate and deteriorating. Peers have accused the government of not acting quickly enough to tackle the unauthorised use of information by technology firms to power their large language models (LLMs). This inaction is seen as a de facto endorsement of such firms and reflects poorly on the government's commitment to British businesses and the equal application of the law, peers said. The committee's recommendations include resolving the issue of copyright, which has become a hotly contested subject in the development of generative AI.
Aviva sued over definition of flooding
City AM??
Holiday resort business Butlin’s is suing Aviva over the definition of a storm after serious flooding meant it had to shut its largest resort, which resulted in a bill of ￡60m. A group of insurers, led by Aviva, told the firm that the damage fell within the category of a “storm” and that as a result they would only cover ￡25m of damage, which it has paid. However, Butlin’s argues that as the Met Office had not declared a “named storm” when the flooding occurred, its claim should not be capped at ￡25m.
AstraZeneca admits its Covid vaccine can cause rare side effect
AstraZeneca is being sued in a class action over claims that its Covid vaccine, developed with the University of Oxford, caused death and serious injury in dozens of cases. The pharmaceutical firm admitted in court documents that the vaccine can cause a rare side effect, known as Thrombosis with Thrombocytopenia Syndrome (TTS), which leads to blood clots and a low blood platelet count. Lawyers argue that the vaccine produced a devastating effect on a small number of families. AstraZeneca is contesting the claims but has accepted that the vaccine can cause TTS in very rare cases.
IBM takes legal action against Lzlabs over reverse-engineering allegations
City A.M.??
IBM is commencing a legal battle against Swiss software company Lzlabs in the English High Court. The tech giant alleges that Lzlabs reverse-engineered its mainframe software to create its own product. Lzlabs denies the breach of terms. The trial, which will last 28 working days, will be closely watched by the tech industry. IBM has also filed legal action in Texas against Lzlabs and Texas Wormhole for alleged misuse of its intellectual property. IBM's legal team includes partners from Quinn Emanuel and leading silks from Brick Court Chambers. Lzlabs has chosen partners from Clifford Chance and leading silks from 4 New Square and 11 South Square.
Tesco hits Swedish truck manufacturer with legal action
City AM??
Tesco has filed a claim against Scania in the Competition Appeal Tribunal (CAT) over alleged monetary losses suffered in the UK. The claim is for damages and other monetary sums for losses Tesco claimed to have suffered as a result of alleged infringements of competition law relating to unlawful and anti-competitive behaviour regarding trucks. Tesco is relying on the infringement decision by the European Commission in 2017, which found that Scania colluded with other truck manufacturers on pricing and passing on the costs of new technologies.
From bribes to sex scandals, lawyer investigations scrutinised over ‘whitewash’ claims
The Solicitors Regulation Authority is due to update its guidance this summer on how best to conduct internal investigations, after lawyers expressed concerns about the robustness of corporate probes.
PROPERTY LAW
KPMG and former partner face ￡1.2bn legal action
City A.M.??
KPMG and former partner David Costley-Wood have been named on a ￡1.2bn claim listed in the High Court by bankrupt Manchester-based property developer Bashar Issa. Bashar bin Mahmood (known as Bashar Issa) owned several property development companies. However, in 2008, he instructed KPMG to assist with restructuring his business after the Irish Bank Anglo Irish Bank (AIB) went into bankruptcy. Issa's claim alleges that KPMG breached its duties, obligations, and confidentiality by using incomplete disclosure. He also says the firm withheld relevant information about the Bank of Ireland, AIB, Barclays Bank, Yorkshire Bank, law firm Eversheds, the police, and more.
Contrasting evidence on improving residential property sector
Submissions made public to a parliamentary inquiry into the home buying and selling process suggest MPs will receive contrasting evidence on how the residential property sector should be improved. CILEX proposes requiring sellers to provide 'material information' about their properties, while the Property Lawyers Action Group criticises the core questionnaire as exposing sellers and estate agents to legal liabilities. The idea of 'end-to-end' digitisation is also questioned amid concerns about fraud. The Smart Data Council, co-chaired by Kevin Hollinrake MP and Gavin Starks, highlights the upcoming Data Protection and Digital Information Bill and the government's exploration of the home buying sector. Pilot projects will inform future digitalisation and the development of Smart Data schemes in the buying and selling process.
Building safety reports lead to costly bills for leaseholders
Building safety regulations introduced last year by Michael Gove are causing leasehold homeowners to face high charges. Reforms require lengthy building reviews at a cost of ￡144 per hour. Buildings over 18 metres must be registered with the new Building Safety Regulator (BSR) and submit a safety case report. The costs of these reports are being passed on to homeowners. A survey by campaign group End Our Cladding Scandal (EOCS) found that leaseholders are being charged an average of ￡600 per year to comply with the new building safety regime. Labour peer Baroness Taylor of Stevenage has tabled an amendment to the leasehold bill, which would cap costs arising from the new building safety regulatory framework at ￡75 a year.
Superdry landlord hires lawyers to challenge rescue plan
Sky News ?
Asset manager M&G, the owner of Superdry’s flagship London store, has engaged with lawyers from Hogan Lovells to review the retailer’s rescue plan that is set to impose steep reductions on landlords. Other Superdry landlords, including Landsec, are also understood to be monitoring the situation ahead of the disclosure of detailed proposals next month. Superdry says it is hoping to gain large rent reduction across 39 UK stores, with 15 locations switching to nil rent, as part of a major restructuring plan as it looks to stay afloat.
EMPLOYMENT LAW
Judge accused of bullying and sexist behaviour in employment tribunal hearings
BBC News ?
Five women have accused a judge – whom they encountered in separate cases - of bullying and sexist behaviour during employment tribunal hearings. One woman told BBC News that Judge Philip Lancaster had shouted at her at least 16 times, while another said she feared for any woman appearing before him. The women said they wanted to highlight his "degrading behaviour." All the women who the BBC has spoken to lost cases heard in Leeds in front of Judge Lancaster, although some of them have been fully or partially successful on appeal. One case heard by Judge Lancaster received publicity in the press. In 2021, Alison McDermott, an HR consultant, brought a high-profile case against Sellafield, the nuclear waste disposal and reprocessing company in Cumbria. News reports at the time referred to criticisms Ms McDermott made of Judge Lancaster. She said he yelled at her and made "sneering" comments about her earnings. "I think it mattered hugely that I was a woman," she says. "For some reason, he had a real problem with the fact that I was a well-paid professional woman." Ms McDermott lost her case, although an appeal judge found there had been errors in her tribunal and she won some minor concessions. A new tribunal is now looking at her claim. Judge Lancaster, who has been an employment tribunal judge since 2007, declined to comment when approached by the BBC.
Labour set to unveil weakened package of workers’ rights
Financial Times / Daily Mirror??
Labour is to unveil a weakened package of workers’ rights in the coming weeks in its latest softening of radical policies ahead of the general election, the FT has learnt. Earlier this week, in a joint article for the Daily Mirror, Labour's Metro Mayors said moves to bolster workers' rights must stay at the top of the party's agenda. Their call came amid speculation that the plans could be watered down. Andy Burnham, Sadiq Khan, Tracy Brabin, Dan Norris, Oliver Coppard, Nik Johnson and Steve Rotheram wrote: "Keir Starmer . . . has said: 'We are going to level-up workers' rights in a way that has not been attempted for decades'. This is the approach we've taken as Labour mayors. We've worked with businesses to set up Fair Work Charters and good work standards to drive up pay and working conditions, and we've sought to do business with good employers who recognise unions and treat their workers well. So many good employers are fed up with bad ones undercutting them by cutting corners on pay and conditions."?
BBC accused of 'grinding down' women on pay
The Guardian / The Daily Telegraph / The Independent??
Four senior female news presenters have accused the BBC of "grinding down" women on pay and failing to tackle persistent pay discrimination. The presenters, Martine Croxall, Karin Giannone, Kasia Madera, and Annita McVeigh, claim they were discriminated against because of their sex, age, and union membership. They accused the BBC of conducting a "sham recruitment exercise" after losing their jobs due to the merger of domestic and global news channels. The women allege that the BBC rigged the process of recruiting chief presenters for the new BBC News channel. The BBC denies the claims.
GENERAL LAW
领英推荐
Government Legal Department aims to become outstanding by 2027
The Government Legal Department (GLD) has launched its three-year business strategy with the goal of becoming an outstanding department by 2027. Treasury solicitor Susanna McGibbon explains that the strategy aims to make GLD a national department, provide rewarding careers, and create a future-ready environment. The focus is on building a strong culture rather than physical locations. GLD staff will have a base location but can work on various legal matters from different places. The department aims to create a sense of belonging and unity among its employees. McGibbon acknowledges the challenges faced by GLD, including stretched resources and competition from private law firms. However, efforts have been made to enhance remuneration for lawyers. The newly appointed chief operating officer will strengthen corporate services within GLD.
Number of families waiting for probate doubles in 2023
The number of families waiting at least six months for a grant of probate has more than doubled since 2020, according to data obtained from the Ministry of Justice. The backlog in probate applications has led to delays in dealing with estates after someone's death, causing financial difficulties for families. The fee for a probate application is also set to increase by 10% next month. Until probate is granted, bank accounts and assets are frozen, causing further problems for families. The delays at the probate office date from 2019 when it moved to a digital system. Applying online can be quicker, but delays still occur. HM Courts and Tribunals Service for England and Wales has recruited more staff to address the issue. It added that the increase in the probate application fee, which is expected to generate up to ￡37m a year, would help to improve its services.
Post Office lawyer considered halting prosecutions of sub-postmasters
The Daily Telegraph??
The Post Office's lead lawyer, Jarnail Singh, raised concerns about halting prosecutions of sub-postmasters due to Horizon inaccuracies, the inquiry into the Horizon IT scandal has heard. This was two years before the cases were eventually dropped. Singh's email questioned whether the Post Office should pause prosecutions while waiting for an interim report on the IT system. Martin Smith, employed by Cartwright King Solicitors at the time, advised against halting prosecutions, as it would imply a problem with the Horizon system. The Post Office continued to wrongly prosecute sub-postmasters until 2015.
Lord Tyrie backs FCA in name and shame row
Former Treasury committee chairman Lord Tyrie has defended the Financial Conduct Authority's proposal to "name and shame" companies under investigation, stating that disclosure is in the public interest. The regulator has faced criticism from Chancellor Jeremy Hunt, who believes the plan is inconsistent with the authority's duty to promote growth. Financial services experts consider the Chancellor's comments to be unprecedented, because the FCA is supposed to be independent from the Treasury. Nathan Willmott, a partner at law firm Ashurst, said: “This may signal a real fracture in relations between the FCA and the Treasury.” The FCA's proposal has also received objections from over a dozen financial services lobbying groups, who argue that it could negatively impact valuations and destabilise financial markets. The FCA aims to change its approach to inquiries to speed up investigations and increase transparency, but concerns remain about publishing the names of companies that are ultimately found innocent.
Civil servants mount legal challenge to Rwanda Act
In what is thought to be the first case of its kind, civil servants are attempting to block a government policy in the courts by seeking a judicial review of ministers' Rwanda plan. The new legislation gives ministers the power to decide whether to comply with the European Court of Human Rights if it rules against a deportation. But the FDA union argues that civil servants could be in violation of the Civil Service Code - which obliges them to comply with the law - if they followed a minister’s demands to ignore an injunction from the Strasbourg court. Dave Penman, FDA general secretary, said the legal challenge is not about the policy itself, rather, that neither ministers nor guidance could overrule the obligation under the Civil Service Code to comply with the law. An Act of Parliament is required to do that.
Law change to allow malicious complaints to be deleted
The Times??
The government has said it will bring forward proposals to ensure that malicious complaints lodged with social services and other agencies can be deleted, the Times reports. The move was driven in the wake of a harassment campaign against Labour MP Stella Creasy. Vexatious complaints about Ms Creasy were made to Waltham Forest Council, which subsequently said it was barred by law from deleting the complaint from her record even after her harasser was convicted. The government, which had resisted Ms Creasy's call for an amendment to the Victims Bill, has now said it will address the issue.
Legislation to protect consumers from hacking
Manufacturers are now legally required to protect internet-connected devices against access by cyber criminals, after new laws protecting consumers from hacking and cyber attacks came into effect. The legislation bans weak default passwords and requires manufacturers to publish contact details for reporting bugs and issues. Science and Technology Minister Viscount Camrose said the laws make the UK the safest place in the world to be online. The laws are part of the product security and telecommunications infrastructure regime, which aims to strengthen the UK's resilience against cyber crime.
SRA seeks to protect client anonymity in SDT proceedings
The Solicitors Regulation Authority (SRA) is currently in the High Court, arguing for the preservation of client anonymity in Solicitors Disciplinary Tribunal (SDT) proceedings. The SRA claims that legal professional privilege (LPP) should take precedence over open justice. The case arose from accusations against George Fahim Sa'id, who was cleared by the SDT but is now being appealed by the SRA. The regulator is also challenging the tribunal's decision to remove Sa'id's clients' anonymity, arguing that it goes against the precedent set in a previous case.
Lawyer salaries stagnate as inflation soars
The Times??
Lawyer salaries, particularly in the City, have been increasing since the pandemic, but the rate of growth is slowing. According to a report by Realm Recruit, pay for legal professionals has only increased by an average of 2% since last year, failing to keep up with inflation. However, there are some positive developments, with salaries rising for lawyers with four to six years' post-qualified experience, especially in private family law and Court of Protection work. Partners specialising in catastrophic personal injury, general litigation, and private client work are seeing increases of up to 15%.?
FIRMS
A&O Shearman officially launches, solidifying position as top five law firm
The highly anticipated merger between UK Magic Circle firm Allen & Overy and New York's Shearman & Sterling has officially taken place, resulting in the creation of A&O Shearman. With nearly 4,000 lawyers and combined revenues of $3.5bn, the new firm is now among the top five law firms in the world. The merger will strengthen A&O's presence in the US and Shearman's position in the UK and other international markets. Khalid Garousha and Hervé Ekué have been named senior partner and managing partner respectively. Garousha described the new firm as "a platform like no other" and expressed confidence in its ability to provide clients with world-class solutions. The success of the merger and the response from A&O's UK rivals will be closely watched.
Law firms and the gender pay gap: progress or regression?
Seven years into mandatory pay gap reporting, law firms are still struggling to bridge the gender divide, Joanna Goodman reports in Law Gazette. While some firms have made progress in narrowing the gap, others are going backwards. The proportion of women working in law firms has increased, but there is still a significant seniority gap. The gender pay gap in the legal sector is higher than the UK average, and the gap increases with seniority. Despite mandatory reporting, big firms are focusing on explaining away their gender pay gap rather than making the necessary structural changes. The Bar Council has also revealed a gender pay gap among barristers.
Listed legal firm RBG lost more than ￡11m in last year as revenue dipped
City A.M.??
Listed legal service group RBG Holdings has reported a loss of over ￡11m in the last financial year, with revenue decreasing by nearly 13%. The group's audited results for the year ended 31 December 2023 revealed a drop in revenue to ￡39.2m, a 12.6% decrease compared to the previous year. RBG Holdings also reported a loss before tax of ￡11.4m, a significant increase from the ￡2.1m loss recorded in the previous year. The group has undergone changes in its business model, focusing solely on legal services as its core business. The value of RBG Holdings' shares has fallen by over 80% in the past year. Despite the challenges faced, the group says it aims to build a high-margin, cash-generative legal services group that delivers sustained shareholder value.
CASES
Gove orders statutory local inquiry into Birmingham council
The Communities Secretary is to invoke powers never before used to order a statutory local inquiry into Labour-run Birmingham council. The government has already sent in commissioners to run the authority, but Michael Gove plans to bring in a senior police chief to investigate financial mismanagement at Britain’s largest local authority. A Whitehall official said: “Birmingham city council’s effective bankruptcy is one of the most catastrophic local government failings in recent history. The Secretary of State is taking the unprecedented step of ordering a statutory local inquiry under the Local Government Act 1999.” Meanwhile, the Guardian reports that insiders say the local authority's finances are in such disarray as a result of a faulty IT system rollout that there are no accurate accounts for the past two years and no way of knowing exactly how the council's budget stacks up.
Hedge fund founder claims controversial tax trades were ‘completely legal'
Sanjay Shah, the hedge fund founder accused of masterminding a ￡1.4bn tax fraud scheme, says he believed the transactions were "completely legal." Shah, who set up Solo Capital Partners, thought the cum-ex trading scheme was a "structure legitimately traded by international banks," according to London court documents filed by his lawyers. Along with others, Shah is also being sued by Danish tax agency Skat to recover the billions defrauded through the controversial tax trading strategy. Shah is currently in detention in Denmark in a criminal case and faces years in jail if found guilty. Cum-ex was a tax-driven trading strategy that exploited loopholes on dividend payout laws to obtain duplicate tax refunds. The London civil case trial, which is set to run for over 12 months, will feature testimony from Shah and tax experts.
Russian billionaire Guryev faces lawsuit over share deal
Sanctioned Russian billionaire Andrey Guryev is being sued by exiled tycoon Alexander Gorbachev over a stake in PhosAgro PJSC, one of the world's largest fertilizer producers. Gorbachev claims he is owed billions in shares that were improperly sold to an ally of President Vladimir Putin. The dispute, which has been ongoing for years, is now being examined in a London court. Guryev denies all allegations and his lawyers argue that Gorbachev's claim is a "fraudulent construct." The trial has brought to light conversations held between the two billionaires in London's pubs and hotels, as well as their joint business ventures during the chaotic privatisation era following the collapse of the Soviet Union. The outcome of the trial will determine the ownership of a significant portion of Guryev's stake in PhosAgro.
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6 个月Great to see steps being taken towards reforming evidence disclosure practices. ???♂? Everton Wedderburn