In my 8 years as a Carmarthenshire County Councillor some senior officers and senior councillors who rule the roost here, appear very thin skinned and intolerant of criticism. Even simply pointing out that something isn't working as it should be. Intimidation and bullying are often successful in silencing the critics as far as the council is concerned, One critic, Jacqui Thompson, is currently in danger of losing her home due to losing a libel action and having to pay damages awarded against her in a libel counter claim funded by this Council brought by our most senior officer.
Carmarthenshire County Council Chief Executive Mark James wishes to claim his libel damages from Mrs Thompson. The record of the Executive Board Meeting which granted him the funding to make a libel counter claim against Mrs Thompson makes it clear that any damages collected by him would be returned to the Council. So the Councillors agreed to fund him on that basis, Apart from one press report where Mr James apparently claims he will give the money to charity. it seems clear that all others concerned including the Wales Audit Office, believed that any monies recovered would be returned to the Council.
The question is will the Council support Mr James in forcing the sale of Mrs Thompson's house to obtain this money for them? The home is jointly owned by her husband and 3 of her 4 adult children still use the home as their permanent address. Are these people also to be punished? It seems unlikely that the Council would force the sale to recover the total legal costs. The original decision to fund Mr James also makes it clear that it was dubious that the Council could recover that sort of money.
I have written to Councillor Emlyn Dole, leader of Carmarthenshire Council who replied with a statement that Mr James is free to act as he wishes to recover his damages . He says "it is purely his [Mark James'] decision" and that his Council is adamant in its desire to recover the whole £190,000 legal costs of the case "because the taxpayers of the County should not have to bear these costs".
The Thompson's bungalow is a self built home with an agricultural tie and an outstanding mortgage which the couple are struggling to pay as it is. Jacqui's half of the house minus the mortgage debt would pay Mr James' damages but little would then be left for Cllr Dole's recovery of the 190k legal fees which I believe have been already paid.
It does look rather excessive where a Council Chief Executive is trying to force the sale of a family home only part owned by the person who libelled him, especially when he had already agreed to give any damages back to the Council. The record shows that decision clearly at the meeting where he was given the funding by the executive board to fight the case. The Council leader and Executive Board, of course, may be fully behind this severe action in order to send a message to anyone who criticises senior officers and the Council as a whole. What they have failed to do is silence this blogger, I believe the real reason or this whole affair is the thin skins of our senior councillors who were happy to use Mr James as a proxy in this case.
Councillor Dole clearly does not appear to agree that the Wales Audit Office decision that the funding of Mr James' claim was unlawful. The WAO is an arm of the Welsh Government so as a Plaid Councillor this may be a political pot shot rather than a serious statement. He says that the unlawful status "has not been tested in the Courts" although the Council has taken the clause out of their constitution allowing the funding of senior officers in libel cases.
Councillor Dole is right to say that the damages were awarded to Mr James and he is free to obtain them in any way he wishes. However, the Council funded his legal case which resulted in the damages being awarded on the understanding that any damages would be returned to Council funds. It seems Mr James is free to use the money as he wishes. as apparently he did not actually sign any document confirming the statements made by the Head of Administration and Law, supposedly on his behalf, at the executive board meeting.
Below, is the text of that 23/1/2012 meeting originally kept secret from us ordinary Councillors and the public. I believe that any Councillors present at that meeting would have made the assumption that any damages would be returned to the Authority by the Chief Executive. I believe also that most current Carmarthenshire County Councillors have no wish to bring the Council into disrepute by forcing the Thompson family to sell up and become homeless in order to promptly recover libel damages originally planned to be paid back to the Authority.
Mr James has declined to accept affordable instalment payments from Mrs Thompson and instead asks for a full lump sum, only available if the family home is sold. This is his right under law but morally,I think it is wrong. The damages were promised by Mr James in the document below to the Authority. We should not, I believe, insist on making the family homeless to produce these damages in full immediately. As the damages were promised to the Council we should have a say in how they are paid to us. Councillor Dole, please discuss this matter before full council !
If Mr James insists. as he may, that he now wishes to change his mind and have the damages for himself alone, perhaps we can come to a compensatory arrangement with him? I am sure we can, as a Council, accept instalment payments from Mrs Thompson and give Mr James all the money if he has changed his mind and wishes to not remit the damages to us as agreed. We got ourselves. and Mr James,into this mess by approving the actions in the document below and we can surely extract ourselves from this embarrassing situation??
Siân Caiach,
EXEMPT REPORT IN PURSUANT OF PARAGRAPHS 16 OF PART 4 OF SCHEDULE 12(A) TO THE LOCAL GOVERNMENT ACT 1972, AS AMENDED BY THE LOCAL GOVERNMENT (ACCESS TO INFORMATION) (VARIATION) (WALES) ORDER 2007 AS IT RELATES TO INFORMATION IN RESPECT OF WHICH A CLAIM TO LEGAL PRIVILEGE COULD BE MAINTAINED IN LEGAL PROCEEDINGS.
UPDATE 1ST DECEMBER 2016
Tomorrow Mrs Thompson goes to a hearing to deal with a request from Carmarthenshire County Council for £190,000. I've specifically written to Councillor Dole to clarify how much of this money for legal costs is actually covered by the legal insurance noted at point one above, No reply as yet.
As the Councillors seem to want nothing but their pound of flesh I and some friends intend to deliver one to County Hall tomorrow.(December 2nd}
Carmarthenshire County Council Chief Executive Mark James wishes to claim his libel damages from Mrs Thompson. The record of the Executive Board Meeting which granted him the funding to make a libel counter claim against Mrs Thompson makes it clear that any damages collected by him would be returned to the Council. So the Councillors agreed to fund him on that basis, Apart from one press report where Mr James apparently claims he will give the money to charity. it seems clear that all others concerned including the Wales Audit Office, believed that any monies recovered would be returned to the Council.
The question is will the Council support Mr James in forcing the sale of Mrs Thompson's house to obtain this money for them? The home is jointly owned by her husband and 3 of her 4 adult children still use the home as their permanent address. Are these people also to be punished? It seems unlikely that the Council would force the sale to recover the total legal costs. The original decision to fund Mr James also makes it clear that it was dubious that the Council could recover that sort of money.
I have written to Councillor Emlyn Dole, leader of Carmarthenshire Council who replied with a statement that Mr James is free to act as he wishes to recover his damages . He says "it is purely his [Mark James'] decision" and that his Council is adamant in its desire to recover the whole £190,000 legal costs of the case "because the taxpayers of the County should not have to bear these costs".
The Thompson's bungalow is a self built home with an agricultural tie and an outstanding mortgage which the couple are struggling to pay as it is. Jacqui's half of the house minus the mortgage debt would pay Mr James' damages but little would then be left for Cllr Dole's recovery of the 190k legal fees which I believe have been already paid.
It does look rather excessive where a Council Chief Executive is trying to force the sale of a family home only part owned by the person who libelled him, especially when he had already agreed to give any damages back to the Council. The record shows that decision clearly at the meeting where he was given the funding by the executive board to fight the case. The Council leader and Executive Board, of course, may be fully behind this severe action in order to send a message to anyone who criticises senior officers and the Council as a whole. What they have failed to do is silence this blogger, I believe the real reason or this whole affair is the thin skins of our senior councillors who were happy to use Mr James as a proxy in this case.
Councillor Dole clearly does not appear to agree that the Wales Audit Office decision that the funding of Mr James' claim was unlawful. The WAO is an arm of the Welsh Government so as a Plaid Councillor this may be a political pot shot rather than a serious statement. He says that the unlawful status "has not been tested in the Courts" although the Council has taken the clause out of their constitution allowing the funding of senior officers in libel cases.
Councillor Dole is right to say that the damages were awarded to Mr James and he is free to obtain them in any way he wishes. However, the Council funded his legal case which resulted in the damages being awarded on the understanding that any damages would be returned to Council funds. It seems Mr James is free to use the money as he wishes. as apparently he did not actually sign any document confirming the statements made by the Head of Administration and Law, supposedly on his behalf, at the executive board meeting.
Below, is the text of that 23/1/2012 meeting originally kept secret from us ordinary Councillors and the public. I believe that any Councillors present at that meeting would have made the assumption that any damages would be returned to the Authority by the Chief Executive. I believe also that most current Carmarthenshire County Councillors have no wish to bring the Council into disrepute by forcing the Thompson family to sell up and become homeless in order to promptly recover libel damages originally planned to be paid back to the Authority.
Mr James has declined to accept affordable instalment payments from Mrs Thompson and instead asks for a full lump sum, only available if the family home is sold. This is his right under law but morally,I think it is wrong. The damages were promised by Mr James in the document below to the Authority. We should not, I believe, insist on making the family homeless to produce these damages in full immediately. As the damages were promised to the Council we should have a say in how they are paid to us. Councillor Dole, please discuss this matter before full council !
If Mr James insists. as he may, that he now wishes to change his mind and have the damages for himself alone, perhaps we can come to a compensatory arrangement with him? I am sure we can, as a Council, accept instalment payments from Mrs Thompson and give Mr James all the money if he has changed his mind and wishes to not remit the damages to us as agreed. We got ourselves. and Mr James,into this mess by approving the actions in the document below and we can surely extract ourselves from this embarrassing situation??
Siân Caiach,
EXEMPT REPORT IN PURSUANT OF PARAGRAPHS 16 OF PART 4 OF SCHEDULE 12(A) TO THE LOCAL GOVERNMENT ACT 1972, AS AMENDED BY THE LOCAL GOVERNMENT (ACCESS TO INFORMATION) (VARIATION) (WALES) ORDER 2007 AS IT RELATES TO INFORMATION IN RESPECT OF WHICH A CLAIM TO LEGAL PRIVILEGE COULD BE MAINTAINED IN LEGAL PROCEEDINGS.
AGENDA ITEM NO.
EXECUTIVE BOARD
23/01/12
THE GRANTING OF AN INDEMNITY TO THE HEAD OF PAID SERVICE
|
| RECOMMENDATIONS / KEY DECISIONS REQUIRED: That consideration be given to granting an indemnity to the Head of Paid Service in legal proceedings before the High Court |
REASONS:
(2) The Authority owes its employees a duty of care and an indemnity to the Head of Paid Service in the circumstances of this case is proportionate and reasonable. |
| Scrutiny Committee recommendations / comments: Not applicable |
| Exec Board Decision Required YES Council Decision Required NO |
| Directorate Name of Head of Service: Linda Rees Jones Report Author Linda Rees Jones | Chief Executives Designations: Acting Head of Administration & Law Acting Head of Administration & Law | Tel Nos. 01267 224012 E Mail Addresses: |
EXECUTIVE SUMMARY
EXECUTIVE BOARD 23/01/12
THE GRANTING OF AN INDEMNITY TO THE HEAD OF PAID SERVICE
|
| 1. A local resident has issued defamation proceedings against (1) the Head of Paid Service and (2) the Authority in relation to comments made in an open letter sent by the Head of Paid Service on the Authority’s behalf to a website (in response to an invitation to do so), and subsequently copied to all members. Any costs associated with the Authority and the Head of Paid Service defending those proceedings will be met (subject to any policy excess) by the Authority’s insurers. 2. The Head of Paid Service, in turn, considers that he himself has been defamed by the local resident in various statements made about him in her internet blog. In view of the potential damage to his integrity and reputation he wishes, in conjunction with defending the proceedings brought by the local resident, to issue a counterclaim in respect of those defamatory statements and seeks an indemnity from the Authority in relation to the costs associated with his bringing such an action. 4. The Local Authorities (Indemnities for Members and Officers) (Wales) (Order) 2006 only authorises the granting of indemnities in relation to the defending a claim for defamation (which as mentioned in 1 above is covered by an insurance policy) and an indemnity cannot be granted under the terms of the 2010 Order for the issue of a counterclaim. 5. However, Section 111 of the Local Government Act 1972 allows Authorities to do “anything (whether or not involving expenditure …… ) which is calculated to facilitate or is conducive or incidental to the discharge of any of its functions’. 6. In the case of R v Bedford Borough Council , Ex Parte Comninos (2003) the High Court held that s. 111 in principle enables an Authority to indemnify an officer to bring defamation proceedings. 7. Although the 2006 Order does not extend to indemnifying the bringing of defamation proceedings Welsh Government Guidance issued in conjunction with the 2006 Order states that any powers to grant an indemnity under the 1972 Act (ie. the s. 111 power) are not removed by the 2006 Order. 8. The Authority sought advice from Leading Counsel in 2008 on the s. 111 power and he confirmed that the giving of an indemnity for an officer to bring defamation proceedings was potentially reasonable and lawful under s. 111, although he advised that it should only be exercised in “exceptional circumstances”. Accordingly, the power to indemnify officers in the bringing of defamation proceedings ostensibly exists. 9. Determination of applications for such an indemnity is an executive function. 10. The granting of an indemnity essentially means that the libel proceedings would be paid for from public funds and any decision to grant an indemnity to the Head of Paid Service to bring these proceedings are susceptible to challenge by means of Judicial Review. Indeed, the Comninos case involved a challenge brought by District Audit to Bedford Borough Council’s decision to indemnify its Head of Paid Service, the Borough Solicitor / Monitoring Officer and a Barrister in the Legal Department in the bringing of defamation proceedings. District Audit’s application for Judicial Review in the Comninos case was dismissed on the facts of that particular case. 11. Officers are consulting with the Wales Audit Office and seeking their view on whether they have any concerns about the granting of an indemnity under s. 111 in this case. 12. In deciding whether to grant an indemnity, the Board will need to consider the following matters:
(b) An indemnity should only be granted “in exceptional circumstances”. The Board must therefore consider whether the circumstances in this particular case are “exceptional”. There is no definition of “exceptional” and it will very much turn on its facts. (c) The Authority owes a duty of care towards its employees. The Judge in the Comninos case said that “it is difficult to see why giving an officer an indemnity in respect of defamation proceedings brought by him is incapable, as a matter of principle, of being conducive or incidental to a local authority’s employment function”. (d) As regards proportionality, the Board is not being asked to indemnify a junior member of staff in the bringing of defamation proceedings, but its most senior officer. Integrity and reputation are essential in order for him to command respect, be able to lead and undertake his duties. (e) The counterclaim is to be kept within sensible and proportionate bounds and will focus only on allegations which have been particularly serious or concerning to the Head of Paid Service and which are demonstrably false. (f) Specialist libel Counsel advises that the comments chosen are “seriously defamatory” of the Head of Paid Service. (g) At the time the ‘Comninos’ case was decided, alternative forms of funding for defamation litigants were not available. This is no longer the case and it might be possible for the Head of Paid Service to retain legal representation on a Conditional Fee Arrangement”. However, the Head of Paid Service’s proposed defamation action is a counterclaim to defamation proceedings brought against him and the Authority and it therefore seems sensible, consistent and more cost efficient to retain the same legal representation, especially as Counsel has advised that the cost of the counterclaim in that context will not greatly increase the overall costs. (h) The merits of the particular counterclaim, including the chances of not just obtaining judgement, but also of actually recovering any legal costs and damages if successful. Counsel has indicated that there are two actionable grounds upon which a counterclaim would be based. It is unclear whether the other party has the financial means to meet any order for damages and/or costs that may be made. (i) The Head of Paid Service has confirmed that he is not motivated by a wish to benefit financially and that accordingly should his action be successful any damages awarded to him will be paid over to the Authority and will not be kept by him. | |
DETAILED REPORT ATTACHED ?
|
NO
(Delete as applicable)
|
IMPLICATIONS
| I confirm that other than those implications which have been agreed with the appropriate Directors / Heads of Service and are referred to in detail below, there are no other implications associated with this report : Signed: Head of Administration & Law | ||||||
| Policy, Crime & Disorder and Equalities | Legal | Finance | ICT | Risk Management Issues | Staffing Implications | Physical Assets |
| NONE (Delete as applicable) | YES (Delete as applicable) | YES (Delete as applicable) | NONE (Delete as applicable) | NONE (Delete as applicable) | NONE (Delete as applicable) | NONE (Delete as applicable) |
| 1. Legal Section 111 of the Local Government Act 1972 potentially allows an indemnity to be granted in relation to the bringing of defamation proceedings by an officer. However any decision to grant the requested indemnity can be legally challenged by way of judicial review. Although the exemption under paragraph 16 of part 4 of Schedule 12 (A) to the Local Government Act 1972 as amended is an absolute exemption it is still necessary to consider whether it is in the public interest to engage that exemption. The nature of the legal proceedings and the extent to which disclosure of the legal advice contained in it would assist the other party to the litigation and undermine the position of the Council and the Head of Paid Service in the proceedings should be weighed against the public interest in disclosing the information upon which a decision to spend public money is based. On balance it is considered that the public interest rests in favour of maintaining the exemption and ensuring the provision of legal advice within the same degree of confidentiality as enjoyed by the other party to the proceedings. | ||||||
It is impossible to estimate what those costs could ultimately be, but in the event the counterclaim fails, there is a risk that the total costs related to the counterclaim could be in the region of £100K. |
CONSULTATIONS
| I confirm that the appropriate consultations have taken in place and the outcomes are as detailed below Signed: Head of Administration and Law |
| (Please specify the outcomes of consultations undertaken where they arise against the following headings) 1. Scrutiny Committee Not applicable 2.Local Member(s) Not applicable 3.Community / Town Council Not applicable 4.Relevant Partners Not applicable 5.Staff Side Representatives and other Organisations Not applicable |
UPDATE 1ST DECEMBER 2016
Tomorrow Mrs Thompson goes to a hearing to deal with a request from Carmarthenshire County Council for £190,000. I've specifically written to Councillor Dole to clarify how much of this money for legal costs is actually covered by the legal insurance noted at point one above, No reply as yet.
As the Councillors seem to want nothing but their pound of flesh I and some friends intend to deliver one to County Hall tomorrow.(December 2nd}
