family law, financial remedies working group, FRWG, reforms, Money Arrangements Programme, MAP
Readers of Family
Law will recall that the
President’s 12th ‘View from the President’s Chambers’, published on 4 June
2014, introduced two working groups; the Children and Vulnerable Witness
Working Group and the Financial Remedies Working Group (who are working on the
new Money Arrangements Programme – the MAP).
The
interim report of the Financial Remedies Working Group (the FRWG) was published on
31 July 2014 and is discussed in
The Financial Remedies Working Group – Essential Update. Today (26 January 2015) saw the publication
of the final report of the FRWG dated 15 December 2014. The final report takes into account comments
and representations made by groups such as Resolution, the Family Law Bar Association and the Family Justice
Council as well as some individual practitioners and judges.
Some of the highlights of the report are outlined below:
Unified Procedure
The interim report had made recommendations which are largely confirmed
in the final report, with the exception of the recommendation that the decision
to include variation and Children Act Schedule 1 applications in the short cut
FPR Chapter V procedure should be reversed.
In the final report, following representations received, the FRWG
recommends that the Chapter V procedure may be used in certain cases (for
example, where there are no complicating factors such as pensions or
capitalisation) provided a written justification is submitted with the
application. The report suggests that
Gatekeeping procedures may then be required to determine whether the Chapter V
procedure is appropriate and, if so, whether any initial directions are
required.
The report otherwise maintains the recommendations made in that regard.
Deemed Applications
The interim report
had recommended that the FPR and/or Form A should be amended so that usually in
cases where a Form A has been issued, all possible financial applications would
be deemed to have been made, so that the court may grant or dismiss them as
appropriate.
The final report
takes into account representations made on this issue, and therefore further
recommends:
- that on
an application for a Consent Order, provided one of the parties has made the
application, there is no requirement for a Form A to be issued in order for the
order to be approved;
- a
public reminder be issued to the effect that it is open to the court to make
any order it considers appropriate and that where a party specifically declines
to make a certain application, perhaps for tactical reasons, the other party
may issue the application against him or herself so that the court has the
power to deal with it.
Enhancement of FDRs
The interim report
had recommended that FDRs should be compulsory feature of all cases, with the
exception only of those cases where the court has specifically ordered
otherwise, which should be only in truly exceptional circumstances. The interim report suggested that no final
hearing date should be given unless and until an FDR has taken place, and
further that the FPR should be amended so as to provide that the parties should
attend court on the first occasion prepared to proceed straight to FDR. The report recommended that judges be
expressly given the power to impose an FDR on the first occasion against the
wishes of the parties.
The final report maintains these recommendations but notes that flexible
listing arrangements will be required to enable the court to accommodate such
hearings. It further recommends thatFDRs be incorporated in the same way as part
of the Chapter V procedure.
Accelerated First Appointment
Procedure
The report notes
that the pilot of this scheme at the Central Family Court has received a number
of favourable responses. The final
report therefore recommends that this scheme is rolled out nationally and
incorporated in an FPR Practice Direction.
Applications to reopen first instance orders
The FRWG confirms its belief that the procedures for re-opening first
instance decisions needs to be clarified.
The Family Procedure Rules Committee (FPRC) is understood to be
considering the introduction of a draft rule specifically dealing with the
court’s power to set aside a final order in specified circumstances. Work is ongoing in that regard and will
likely await the outcome of the Supreme Court appeals in
Sharland
v Sharland [2014] EWCA Civ 95, [2014] 2 FLR 89 and
Gohil
v Gohil [2014] EWCA274, [2015] 1 FLR 178.
Applications for financial
relief after an oversees divorce
The FRWG maintains the position from its interim report that FPR, r 8.25(1) should
be amended so as to clarify that applications under Matrimonial and Family
Proceedings Act 1984 should normally be made without notice. It is understood that the FPRC has considered
this issue and an amendment has been agreed which is likely to be implemented
in April 2015.
A further recommendation is made in the final report to amend the FPR to
specifically confirm the power of the
court to transfer cases under the MFPA 1984 to appropriate Family Court
locations once the leave stage has been completed, as demonstrated by Holman J
in
Barnett
v Barnett [2014] EWHC 2678 (Fam), [2014] Fam Law 1518. Furthermore, the report recommends that the
issue of the level of judge who can grant leave in such applications should be
determined by a district judge as part of the usual box-work exercise.
Efficient conduct of final hearings
The report maintains the recommendation from the interim report that the
provisions of the
Statement
on the efficient conduct of financial remedy final hearings allocated to be
heard by a High Court judge whether sitting at the Royal Courts of Justice or
elsewhere of 5 June 2014 should be implemented in final hearings of financial
remedies cases listed for 3 days or more.
The final report particularly draws attention
to the decision of Mostyn J in
J v
J [2014] EWHC 3654 (Fam) particularly dealing with the issues of the instruction of single joint
experts and the need to follow PD27A in preparing bundles.
Legal
costs in financial applications
Costs were not specifically addressed in the
interim report. However, taking on board
Mostyn J’s decision in
J v J, the final report deals with the issue. The report confirms that the FRWG is opposed
to the reintroduction of the Calderbank system.
However, it was noted that FPR, r 28.3 dealing with costs for
litigation misconduct needs to be applied more generally, and equally to
litigants in person.
The report further recommends that Mostyn J’s
suggestion that fixed costs be used in family proceedings should be considered
by the costs working party of the FPRC and that professional bodies such as
Resolution, the Law Society and the Family Law Bar Association be given the
opportunity to engage in discussion.
De-linking Financial Remedy applications
from the divorce/dissolution suit and Choice of court
The recommendations on de-linking and the
ability to make a choice of court in certain circumstances where, for example,
it might be advantageous for the parties to be able to choose the Financial Remedies Unit at the Central
Family Court in London are maintained
from the interim report.
Litigants
in person and McKenzie Friends
The recommendations relating to litigants in
person are maintained from the interim report.
The interim report noted that a McKenzie
Friends Working Group (MFWG) had been set up to report on this area. A draft of the second report of that group is
now under discussion which will specifically deal with the issue of
paid
McKenzie Friends. That report was
understood to be scheduled to be finalised and submitted to the Judicial
Executive Board in the second week of December 2014 but its recommendations
were not known at the time the final report of the FRWG was compiled.
Family
Justice Council ‘Matrimonial Needs’ Working Group
The report notes that a guide on ‘needs’
targeted at litigants in person is anticipated in the first half of 2015.
Standard
Orders
The recommendation in the interim report of
the adoption of the following
standard orders is
maintained:
(a) Financial Remedies Directions Omnibus – Shorter Version;
(b) Financial Remedies Directions Omnibus – Longer Version with index;
(c) Financial Remedies Final Orders Omnibus with index;
(d) Children Act Schedule 1 Final Orders Omnibus with index;
(e) Wardrobe of Enforcement Orders; and
(f) Wardrobe of Committal Orders.
The final report further recommends consideration of the IT issues
involved in making the forms as user friendly as possible, and that work on the
judicial versions of these forms be carried out in the same manner as the CAP
orders.
Arbitration in family
proceedings
The final report maintains the recommendation
from the interim report that CPR PD 62 be amended to include the High Court,
Family Division, that a family equivalent of the form N8 be commissioned that
the guidance set out
at
annexe 12 of the interim report be implemented.
Next
steps
Practitioners will note that there are a
number of aspects which will require involvement from other Working Groups,
committees or professional bodies. At
this stage there are no timescales given for implementation of any of these
proposals but practitioners are advised to familiarise themselves with the
recommendations and new procedures which are likely to come into force in the
not-too-distant future.
The
standard orders
are available for use now and practitioners should consider familiarising
themselves with these.
Practitioners should also keep an eye on
Family Law for further updates in this area.
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