MPA/MPS protocol on compensation cases

Report: 5
Date: 25 January 2001
By: Commissioner

Summary

This paper sets out the protocol arrangements for dealing with compensation cases, whether of an urgent nature or not agreed between the MPA and MPS.

A. Supporting information

Context

1. The types of compensation cases to which the protocol 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

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

'consult the Clerk and/or the 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.' (paragraph 5)

3. Compensation cases will potentially fall within the scope of paragraph 5 to the extent that they are considered to be of an exceptional nature.

Purpose of protocol

4. The purpose of this protocol is threefold: (a) to set out agreed arrangements for notifying the MPA on a regular basis as to the number and progress of compensation cases; (b) 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 (c) to set out agreed arrangements for the MPA to approve settlements of compensation cases requiring reference to the Authority.

5. The protocol has been prepared to add value to the procedures that the MPA and MPS will implement. It will also act as a guide to:

• MPA members and officers, and MPS staff in the various units responsible for dealing with compensation claims, by providing an understanding of the processes that will be adopted in dealing with approval of compensation;
• MPA members and managers, so that they can regularly review the processes and make changes as required in order continuously to improve the responsiveness of the MPA in giving approval to settlements in cases referred to;
• new MPA/MPS staff who need to be inducted into the relevant procedures.

Notification of compensation cases to the Authority

6. The agreed start position is that the Authority should be notified on an individual basis of all compensation cases that are significant in terms of quantum or sensitivity. Appendix 1 sets out agreed criteria defining which compensation cases will be notified to the Authority.

7. The criteria includes quantum ie: the fact that a case has real potential to attract an award of £50,000 or more (£100,000 in the case of accident claims.) But on the grounds of sensitivity cases likely to involve much smaller sums, perhaps only a few thousands may still require notification to the Authority if they fall within any of the criteria set out in Appendix 1, for example, cases likely to attract media attention.

8. The MPS at any one time has a number of compensation cases outstanding. Where cases, of whatever type, are judged not to fall within the criteria set out in Appendix 1, the Commissioner will progress and settle cases within his own-delegated authority and without reference to the MPA. The Authority will, however, receive summary management information about settlements achieved in cases on a six monthly basis.

9. Where cases considered by the Commissioner fall within the criteria of Appendix 1, the Commissioner will ensure that de-personalised information about the cases is provided to the Authority in a report to the appropriate committee on a quarterly basis. The proposed committees are:

• employment tribunals to the Human Resources Committee;
• all other cases to the Chair’s Urgency and Co-ordination Committee.

10. The Authority for its part will afford the information provided by the Commissioner full confidentiality and ensure that any discussion of it at Authority meetings takes place under Part II of the agenda, without the press and public present.

Interpretation of paragraph D5 - approval to settle

11. To ensure that the Authority has a good understanding of the compensation cases in progress the criteria for notification have been widely drawn. This gives the Authority, through the Clerk or Treasurer, the opportunity to identify those relatively few cases that because of their exceptional nature will require Authority approval to settle. It is proposed that the definition of exceptional cases should be those that “have the potential to cause real damage to the Authority or to the Service”. The MPS will have a responsibility to identify such cases, even if the Authority has not specified that its settlement authority is required. The process is set out see Appendix 2.

Arrangements for MPA approval of settlements

12. The Commissioner will make every effort to ensure that proposals for the settlement of compensation cases are presented to the Authority at the earliest opportunity. Full information about the case, including a summary of Counsel’s views, should be provided via the Clerk and/or Treasurer. Where the amount of the proposed settlement has not been agreed, the Commissioner will seek approval to negotiate within a range, the upper and lower limits of which will be specified, having regard to advice received from Counsel.

13. The Clerk and/or Treasurer, on receipt of a proposal, and in the light of all the circumstances, will decide how and when the proposal should be submitted to the Authority for approval.

Timescales

14. There will be occasions when matters are of so urgent a nature that they cannot wait until the next meeting of the Authority or appropriate committee. This may result from changes in the anticipated settlement level outside the range agreed with the Authority before a hearing which is due to take place between Committees. There are also instances where a very urgent response is required. Examples include:

• employment Tribunal cases where it is not unknown for the Tribunal to give the MPS no more than 15 minutes to 1 hour to secure agreement on a particular case;
• immediately prior to a hearing (i.e. evening or morning) a claimant may seek settlement at a higher level than the MPS has previously offered;
• during a hearing, a case that may previously have been assessed as low interest/low compensation may come up against difficulties requiring a settlement to be reached during an adjournment. This may include a financial settlement for which authority may be required.

15. Procedural Standing Order 11 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 sets out guidance on the intended working of the Standing Order.

16. 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 receipt of appropriate information should reduce the need to invoke the urgency procedure.

Out of hours contact

17. Where the Commissioner requires an 'out of hours' approval, every effort will be made to contact the Clerk and/or Treasurer. 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.

18. To facilitate the process and eliminate potential difficulties with other methods of contact, contact details of key MPA and MPS officers will be agreed for each type of case and relevant committee.

B. Recommendation

Members are asked to note the protocol agreed.

C. Financial implications

The implementation of the protocol in itself does not raise financial implications.

D. Review arrangements

The protocol will be reviewed, as appropriate, in the light of the experience of actual cases.

E. Background papers

The following is a statutory list of background papers (under the Local Government Act 1972 S.100 D) which disclose facts or matters on which the report is based and which have been relied on to a material extent in preparing this report. They are available on request to either the contact officer listed above or to the Clerk to the Police Authority at the address indicated on the agenda.

• MPA Standing orders

F. Contact details

The author of this report is Anne Townley, Corporate Development Group, Metropolitan Police service.

For information contact:

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

Appendix 1: High profile/sensitive case guidance

A high profile/sensitive 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 to level would be £100,000;
2. it involves 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 and/or
   2. it involves well known witness(es) and/or
   3. it involves a high-ranking police officer(s) and/or civil staff
   4. there is a particular public interest in the case(s) (eg: 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 (eg: because it involves issues which are currently the subject of public debate).

The above criteria applies equally to threatened proceedings, inquests and disciplinary proceedings. The criteria are not exhaustive and there may be occasions where cases not falling in these categories may be referred.

It is recommended that cases meeting the criteria be referred as early as possible even if only brief details are known.

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