MPA/MPS protocol on compensation cases

Report: 4
Date: 22 March 2001
By: Commissioner

Summary

This paper sets out the proposed MPA/MPS protocols for dealing with notification and approval of compensation cases.

A. Recommendation

That the protocols for compensation be adopted.

B. Supporting information

1. The Chairs Co-ordinating and Urgency Committee on 25 January 2001 agreed to report that set out the principles of handling compensation cases. It was agreed that the report should be turned into a protocol for formal ratification at the next meeting of the Committee. Protocol is see Appendix A.

2. The basis for the protocol is Section D (Finance) Scheme of Delegation.

C. Financial implications

There are no financial implications associated with the introduction of the protocol.

D. Contact details

The author of this report is Barbara Riddell, Director of Corporate Development Group.

For information contact:

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

Appendix A: MPA/MPS protocol on compensation cases

Context

1. This protocol 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.

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

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

2. 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.

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 the Authority;
• new MPA/MPS staff who need to be aware of the relevant procedures.

Notification of compensation cases to the Authority

3. 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. The note at Annex 1 sets out agreed criteria defining which compensation cases will be notified to the Authority.

The criteria includes quantum ie: the fact that a case has real potential to attract an award of £50 000 or more (£200,000 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 Annex 1, for example, cases likely to attract media attention.

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 A, 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.

Where cases considered by the Commissioner fall within the criteria of Appendix A, 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

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

4. 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 which because of their exceptional nature will require Authority approval to settle. It is proposed that the definition of exceptional cases should be those which "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.

This process is set out in a simple flow chart at Annex 2 (see Supporting material).

Arrangements for MPA approval of settlements

5. 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, will 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 fight the case, make a payment into a court or negotiate with a specified limit, having regard to advice received from Counsel.

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

6. 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 which 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.

Procedural Standing Order 11 (PSO11 – copy at Annex 3) 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.

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

7. 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.

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.

Annex 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 multiply claims/claimants), except in the case of Accident Claims when to level would be £200,000;
2. it involves an issues of principle and/or financial policy (eg: medical/ill health retirements);
3. it is in nature a test case;
4. it is likely to attract publicity, examples are:

• it involves a well known claimant and/or
• it involves well known witness(es) and/or
• it involves a high-ranking police officer(s) and/or civil staff
• 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, practises 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).

Please note that the above criteria apply equally to threatened proceedings, inquests and disciplinary proceedings. The criteria is 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.

Annex 3

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:

• 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
• 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;
• alternatively, and in any event in the absence of the Chair, the matter should be referred to the Urgency Committee;
• 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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