Claims made under the Riot (Damages) Act 1886 arising from incidents in Central London between Saturday 6th August and Tuesday 9th August 2011 (inclusive)

Report: 4
Date: 8 September 2011
By: Director of Legal Services on behalf of the Commissioner

Summary

To date more than 350 claims at an estimated total value of £136.8m have been received by the MPA under the provisions of the Riot (Damages) Act 1886 (‘RDA’) following incidents in 28 London Boroughs. The time-limit for filing claims has not expired and the majority of claims are probably yet to be made including potentially high value damage claims from insurers that are representing commercial businesses. Further the estimates provided to date will be increased on receipt of the finalised claim. In light of the volume and potential size of the claims the MPA are requested to agree processes and delegations for handling these claims.

A. Recommendation

That Members

1. 1. Subject to approval by the MPA that loss or damage was caused by a riot, agree that the following process should be adopted:
   • For claims with a value up to £500,000 (whether insured or uninsured), authority is delegated to the Commissioner (acting through DLS) to investigate the claim and fix the just level of compensation payable under the RDA.
   • For claims with a value of £500,000 or more (whether insured or uninsured), DLS will investigate and report to the Authority, and the Authority will fix the just level of compensation payable under the RDA.
2. Agree that as further report be submitted to the October Strategic and Operational Policing Committee meeting setting out proposals for dealing with claims of £500,000 or more having regard to the number and value of claims submitted, as the 42 day period will have elapsed for claims to be submitted under the RDA.
3. An appeal process will be developed and proposals brought to SOP at its October meeting.
4. Agree that the acceptance that a riot was taking place in an area and at a time for the purposes of the Riot (Damage) Act will be a decision for this Committee or a sub-committee.
5. Agree to delegate to DLS authority to reject claims where they do not fall within the terms of the Riot (Damages) Act and regulations.

B. Supporting information

1. The RDA provides that compensation authorities (for the Metropolitan Police district this means the MPA) are strictly liable for certain losses caused by riot. Those rights are defined within the RDA in the following terms:

“Where a house, shop, or building in a police area has been injured or destroyed, or the property therein has been injured, stolen or destroyed, by any persons riotously and tumultuously assembled together, such compensation as herein-after mentioned shall be paid out of the police fund of the area to any person who has sustained loss by such injury, stealing, or destruction; but in fixing the amount of such compensation regard shall be had to the conduct of the said person, whether as respects the precautions taken by him or as respects his being a party or accessory to such riotous or tumultuous assembly, or as regards any provocation offered to the persons assembled or otherwise”

2 The RDA extends to providing that where insurers have settled claims in respect of riot damages which otherwise could have been claimed under the RDA, they can reclaim the payments from the compensation authority.

3. During the period 6th August 2011 to 9th August 2011 levels of disorder, unprecedented in modern times, occurred in nearly every part of the Metropolis. The number of criminal offences as at 21st August 2011 totaled 3,300. There will be crime reports in respect of each of these offences. The widespread disorder resulted in a significant increase in reported crimes, particularly in respect of non-residential burglary, commercial robbery, criminal damage and arson. It has further been reported that there may be over 20,000 hours of CCTV footage relating to this disorder.

4. The MPS established two high level policing operations as a result of the disorder, Operations Withern and Kirkin, to address both the crimes committed and the overall strategic policing of the disorder; particularly in view of the risk of ongoing disturbances.

5. Parliament was also recalled for an emergency debate on 11th August 2011 regarding the disorder. In his opening address the Prime Minister made reference to legitimate claims for both uninsured and insured individuals/businesses being compensated under the RDA. For the purpose of dealing with claims made under the RDA (whether arising out of the earlier demonstrations or the recent disorder) it is first necessary to establish that the loss or damage was caused by persons riotously or tumultuously assembled together.

6. For a riot to be deemed to have taken place, the RDA (by virtue of S10 (1) of the Public Order Act 1986 (“POA”)) is to be construed in accordance with Section 1 of the POA which, together with consideration with the established case law, provides that there must be:

• Number of persons; twelve at least
• Common purpose
• Execution or inception of the common purpose
• An intent to help one another by force if necessary against any person who may oppose them in the execution of their common purpose
• Force or violence displayed in such a manner as to alarm at least one person of reasonable firmness or courage
• Tumult (that is to say whether they ‘ were in such numbers and in such a state of agitated commotion and were acting that the forces of law and order should have been well aware of the threat which existed’)

7. Following the parliamentary debate the Home Secretary wrote to the Chair of every Police Authority on 12th August 2011 reiterating Central Government’s desire to compensate both insured and uninsured claimants in accordance with the Riot (Damages) Act provisions.

8. The scale of the disorder is unprecedented in modern times and will result in a voluminous amount of material including Crime reports (many of which may be in excess of 50 pages); CAD documents; Witness Statements; CCTV footage (see above) and photographs (DLS have been advised that 7,000 photos may be in existence). As there are ongoing criminal investigations under Operation Withern access to that material may potentially be delayed due to the need to use these in criminal proceedings. As a consequence the use of that material in these RDA claims may be limited or deferred so as not to potentially prejudice the criminal proceedings.

9. In relation to the uninsured claims, loss adjusters appointed by the Home Office are considering evidence of fraud in accordance with normal industry practice. Claims by insured individuals/businesses will be considered for fraud by the insurance companies in accordance with their standard fraud processes. On receipt of the claim and supporting documents DLS will give consideration to whether any additional investigations for fraud are necessary.

10. A governance checklist has been agreed with the loss adjusters and the Home Office and all uninsured claims will be checked against that process. The process for insured claims is still under development.

11. Other sources of funding for individuals and businesses affected by riots include claims from the Criminal Injuries Compensation Authority, the Local Authority’s ‘High Street Support Scheme funding’, ‘The High Street Fund’ offered by the Mayor’ and schemes maintained by the major clearing banks.

C. Other organisational and community implications

Equality and Diversity Impact

1. This report outlines the processes for dealing with claims arising from the August riots and as such there are no equality or diversity issues. However at a local level these processes will need to be supported by targeted reassurance messages to ensure that all affected communities are made aware of and are able to access information to allow them to make claims in a timely manner.

Consideration of Met Forward

2. The resolution of these claims is a statutory obligation under the RDA. However, where it is justified to do so, based on evidence obtained, claims shall be repudiated.

Financial Implications

3. The estimated value of the claims submitted to date is £136.8m. This figure is expected to increase before the deadline for submission. There are on going negotiations with Home Office as to reimbursement of the cost of compensation and claims handling in relation to insured and uninsured claims. Pending the outcome of those negotiations it is not possible to assess the impact of these claims on the MPA/MPS finances in both the current and future years.

Legal Implications

4. DLS will deal with claims in accordance with the RDA. In cases where claimants are dissatisfied with a decision to refuse compensation, or as to the amount of compensation awarded, these decisions may be challenged in the courts.

Environmental Implications

5. There are no environmental implications arising directly from this report therefore no decision with the environmental implications is sought.

Risk (including Health and Safety) Implications

6. Risk factors will be assessed and reported to the MPA as appropriate.

D. Background papers

Claims made under the Riot (Damages) Act 1886 arising from incidents in central London between Saturday 6th August and Tuesday 9th August 2011 (inclusive) (Exempt part 2)

D. Contact details

Report author: Edward Solomons, Director of Legal Services, Franca Oliffe, Assistant Director (Management & Support) of Legal Services and Niall Brannigan Directorate of Legal Services.

For information contact:

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

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