MPA/MPS protocol on compensation cases

Report: 10
Date: 25 October 2001
By: Clerk

Summary

This report proposes revised MPA/MPA protocols for compensation cases, introducing: 

• greater clarity about which cases should be notified to the Authority and when the MPA's approval is required; cases; 
• guidance on financial assistance to staff in legal proceedings; 
• and a system to record decisions, for audit purposes.

A. Recommendations

That Members are asked to endorse the proposed changes.

B. Supporting information

1. At MPS Management Board in July 2001, it was agreed that Accident Claims Branch and the Employment Tribunals and Grievance Advice Unit should be realigned under the line management of the Directorate of Professional Standards (DPS). The realignment, which came into effect on 1 October 2001, is intended to simplify information flows, improve the consistency of decision making, allow the early identification of problems and co-ordination of efforts to 'learn lessons'.

2. The following factors highlight the need to review the March 2001 protocols:

• opportunities arising from DPS realignment;
• a need for greater clarity about which cases should be notified to the MPA;
• a requirement for written records of funding decisions for audit purposes;
• a continuing need to standardise 'exceptional' funding requests; and
• an increasing MPA involvement in decisions about the funding of officers' legal representation at inquests, trials and hearings.

3. The amended protocols at Appendix 1, have been revised as follows:

• 'significant' cases, which must be notified to the Authority, are more clearly defined. Annex 1 of the original protocols (high profile/sensitive case guidance) has been re-labelled as 'significant cases';
• the relationship between 'significant' and 'exceptional' cases is clarified;
• procedures for notifying cases to the Authority have been streamlined, with a single unit of the Directorate of Professional Standards providing all claims related information directly to the Clerk;
• there is a new section on financial assistance to staff in legal proceedings; and
• a format for recording decisions, for audit purposes, has been included.

C Financial implications

There are no direct financial consequences arising from this proposal.

D. Background papers

None.

E. Contact details

The author of this report is Simon Bray A/Commander, Directorate of Professional Standards.

For information contact:

MPA general: 020 7202 0202
Media enquiries: 020 7202 0217/18

Appendix 1: MPA/MPS protocol on compensation cases - October 2001

1. Context

This protocol replaces the version approved in March 2001. It sets out arrangements agreed between the MPA and MPS for dealing with compensation cases, whether of an urgent nature or not. The types of compensation cases to which it applies are:

• Civil litigation cases
• Cases before Employment Tribunals
• Accident claims
• Riot damage claims
• Ex gratia payments to contractors
• Other cases that may develop and are yet to be specified.

This protocol also covers situations where MPA approval for financial assistance to officers involved in legal proceedings is required.

The starting point for the protocol is Section D (Finance) of the Scheme of Delegation. This provides (in para 2) for the Commissioner to undertake day to day financial management of the MPS and devolve financial management responsibility within the Force in accordance with the scheme agreed with the Treasurer. It goes on to require (para 5) the Commissioner to:

'consult the Clerk and/or Treasurer, who will determine whether the Authority's approval should be sought, for all expenditure proposals of an exceptional nature because of particular difficulty, potential public interest or sensitivity.'

Exceptionally, compensation cases may fall within the scope of paragraph 5.

2. Purpose of protocol

The purpose of this protocol is threefold:

1. to set out agreed arrangements for notifying the MPA on a regular basis as to the number and progress of 'significant' compensation cases;
2. to set out agreed understandings between the MPA and MPS on the practical interpretation of paragraph 5 in relation to settlement of compensation cases; and
3. to set out agreed arrangements for the MPA to approve settlements of compensation cases requiring reference to the Authority.

The protocol will act as a guide for MPA members and officers and MPS staff involved in overseeing, managing or handling compensation claims.

3. Notification of significant compensation cases to the Authority

The Authority shall be informed of all individual cases that are 'significant' in terms of quantum or sensitivity. Annex 1 sets out guidance as to what is to be classed as a 'significant' case

This includes quantum i.e. the fact that a case has a real potential to attract an award of £50,000 or more (£200,000 in the case of accident claims). However, significant cases of all values will need to be notified to the Authority if they fall within the terms of Annex 1.

Most compensation claims will fall outside the definition of 'significant' and do not therefore need to be notified to the MPA. It is recognised, however, that individual cases may become significant at short notice through the sudden interest of the media or other events. Such cases will then be notified to the Clerk of the Authority.

A quarterly report will be forwarded to the Clerk of the Authority, with information on all identified significant cases. All types of claim/case will appear on the same report. Where necessary for legal or operational reasons, information to the MPA will be depersonalised in individual cases. All information must be treated as confidential and any discussion about the reports at Authority meetings must take place under Part II of the agenda, without the press and public present.

The summary information provided within the quarterly report of significant cases will enable the Authority, if they so wish, to seek fuller information on specific claims and to identify those cases which will require their authority as an 'expenditure proposal of an exceptional nature'

4. Interpretation of paragraph D5 – approval to settle

The notification of significant cases, normally by means of the quarterly report, will allow the Authority, through the Clerk, to identify those few cases which will require Authority approval to settle or otherwise make a payment as 'exceptional' cases. The working definition of an 'exceptional' case in this context is:

'any case with the potential to cause real damage to the Authority or to the Service'.

The MPS will have a responsibility to identify exceptional cases even if the Authority has not specified that its settlement authority is required. Such cases will be individually notified to the Clerk, in the first instance.

5. Arrangements for MPA approval of settlements or other payments

The Commissioner will make every effort to ensure that proposals for the settlement for compensation cases are presented to the Authority at the earliest opportunity. An adequate summary of the issues involved, including a summary of the legal advice will be provided to the Clerk, who will then arrange for the case to be considered. Submissions will be in an agreed format, specifying a recommended course of action and level of funding sought, together with an assessment of alternative options, where appropriate. A suggested proforma at Annex 2 also provides the necessary information for audit purposes. One copy would remain with the MPA, while a signed authority would be returned to the MPS, for inclusion within the relevant papers. Written confirmation of the Authority's approval is required by the MPS in every case.

6. Financial assistance to officers involved in legal proceedings

Home Office Circular 43/2001, dated 21/9/01 (see Annex 3) describes the role of Police Authorities in respect of financial assistance to members of the MPS involved in legal proceedings. HOC 43/2001, states:

'In summary, police officers must be confident that Police Authorities will provide financial support for officers in legal proceedings where they have acted in good faith and have exercised their judgement reasonably. Police Authorities will need to decide each case on its own merits, but subject to that there should be a strong presumption in favour of payment where these criteria are met.'

Notice 33/99 (Annex 4, to be redrafted as a consequence of HOC 43/2001) currently provides an internal guide to the provision of such assistance, which is normally authorised on behalf of the MPS/MPA by a Detective Chief Superintendent within the Directorate of Professional Standards.

There are, however, cases where the Police Authority will be asked to determine whether such financial assistance should be allowed. Such situations would include cases involving 'significant' factors as described at Annex 1. Although unusual, such applications will proceed in the same way as 'approval cases' for civil claims and Tribunals, in a format similar to that at Annex 2.

7. Timescales

Any application for approved funding will be made at the earliest opportunity to the Clerk, who will then arrange for the case to be considered. There are occasionally cases where a very urgent response is required due to sudden developments in the case, including immediately before or during a trial or hearing. In such cases, any verbal reports to the Clerk or nominee will be followed by a faxed copy of the proforma referred to at 5 and at Annex 2.

Procedural Standing Order 11 (PSO11 – copy at Annex 5) makes provision for decisions to be taken 'if a matter is of so urgent a nature that it cannot await the next meeting of the Authority or appropriate Committee.' Particular provision is made for individual officers (Commissioner, Clerk, Treasurer) to take the necessary action, following consultation with the other named officer and, where possible, having first obtained the written support of the Authority.

The Urgent Business protocol should only be used as a last resort. Every effort will be made to ensure that decisions requiring Authority approval are dealt with through the appropriate committee processes of the Authority. Careful planning, underpinned by the timely receipt of appropriate information should minimise the need to invoke the urgency procedure.

8. Out of hours contact

Where the Commissioner requires an 'out of hours' approval, he will make every effort to contact the Clerk or nominee. The MPS will not approach the Chair or one of the Deputy Chairs of the Authority direct, unless attempts to contact the statutory officers have failed.

To facilitate the process and eliminate potential difficulties with other methods of communication, the MPA will be responsible for maintaining an MPA/MPS priority contact list for all issues relating to this protocol.

Annex 1: Significant cases

Guidance on which cases should be notified to the MPA

A significant case is a case where one or more of the following criteria are met:

1. It has real potential to attract an award of £50,000 or more (to include multiple claims/claimants), except in the case of Accident Claims when the level would be £200,000.
2. It involves any issues of principle and/or financial policy (e.g. medical / ill-health retirements
3. It is in nature a test case
4. It is likely to attract publicity; examples are:
   1. it involves a well known claimant
   2. it involves well known witness(es)
   3. it involves a high ranking police officer(s) and/or civil staff
   4. there is a particular public interest in the case(s) (e.g. claims of persistent police harassment and racism over a sustained period of time, or it arises from a targeted operation).
5. There is a risk that the MPS/MPA will be exposed to public criticism and/or weakness in, or lack of MPS policy, practices or procedures will be revealed.
6. It involves a death in custody – particularly following use of force by police officers.
7. It is likely the settlement will give rise to media comment (e.g. because it involves issues which are currently the subject of public debate).

Please note that the above criteria apply equally to threatened proceedings, inquests and disciplinary proceedings. The criteria are not exhaustive and there may be occasions where cases not falling within these categories may be referred.

It has been agreed that cases meeting the criteria will be referred as early as possible even if only brief details are known.

Significant claims may require funding approval from the MPA in 'exceptional' circumstances. An exceptional case is:

'any case with the potential to cause real damage to the Authority or to the Service'

Annex 2: Request to the Metropolitan Police Authority for exceptional funding (MPA/MPS compensation protocol, para 5)

MPS Reference: OG22/

Request by:

Name of case:

Why this case is 'exceptional' (to include 'significance' factors, as per Annex 1 of protocol)

Summary of facts

Summary of legal advice

MPS reference (contd): OG22/

Case management options (where appropriate)

Recommendation

Precise funding arrangements sought:

Decision required by:

Decision:

1. On the above grounds, the MPA has approved funding to pursue the recommendation:

OR

2. The MPA has made the following decision:

Approved by:

Signed on behalf of the MPA by:

Name:

Signed on behalf of the MPS by:

Name:

Date:

Annex 3: Home Office circular 4/1998

This annex is not available here. Contact the MPA for further details.

Annex 4: MPS Notice 33/99

This annex is not available here. Contact the MPA for further details.

Annex 5: Urgent business

1. If a matter is of so urgent a nature that it cannot await the next meeting of the Authority or appropriate committee:

1. It can be referred to a pending meeting of an alternative executive committee or added to the agenda of such a meeting if the Chair decides that it should be considered as a matter of urgency pursuant to Section 100 B(4)b of the Local Government Act 1972; or
2. The Commissioner, Clerk and/or the Treasurer (following consultation with the other named officers) may take the necessary action, provided he/she has first obtained the written support of the Chair of the Authority. In very exceptional circumstances, because of critical timing, the requirement to first obtain the Chair's support may be waived, subject to endorsement being sought after the event.
3. Alternatively, and in any event in the absence of the Chair, the matter should be referred to the Urgency Committee.
4. Alternatively, where there is a need, or it is considered desirable, to involve all members, a special meeting of the Authority will be called.

2. The Clerk shall be notified of any action taken under this Standing Order and shall report on the matter to the next Authority meeting.

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