Hughes & Ors v HM Customs & Excise [2002] EWCA Civ 670 (20th May, 2002)

Hughes & Ors v HM Customs & Excise [2002] EWCA Civ 670 (20th May, 2002)

Receivers appointed under the Criminal Justice Act 1988 and Drug Trafficking Act 1994 are entitled to recover their remuneration and expenses from the assets under their control prior to the making of a confiscation order, unless the statute expressly provides otherwise. The statutory scheme does not require the prosecution to bear these costs except as a last resort, and this approach is not incompatible with Article 1 of the First Protocol ECHR. The court should, however, exercise careful control over the appointment and remuneration of receivers to avoid disproportionate impact on defendants and third parties.

Citation
[2002] EWCA Civ 670
Parties
Claimants/respondents: Hughes & Others; Defendant/appellant: HM Customs & Excise; Claimants/respondents: R & Another; Defendant/appellant: The Crown Prosecution Service; Claimant/respondent: Anderson
Jurisdiction
England and Wales
Procedural Posture
Appeal (civil) / Court of Appeal Judgment on Conjoined Appeals From the High Court (administrative Court)
Outcome
Appeals allowed; orders of the High Court set aside.
Legal Topics
Receivership, Restraint Orders, Confiscation Proceedings, Remuneration of Receivers, Human Rights Act 1998, Article 1 Protocol 1 ECHR, Costs and Expenses in Criminal Asset Recovery
Criminal Law Civil Procedure Human Rights Receivership Restraint Orders Confiscation Proceedings Remuneration of Receivers Human Rights Act 1998 +2 more

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Parties

Hughes & Others

Claimants/respondents

HM Customs & Excise

Defendant/appellant

R & Another

Claimants/respondents

The Crown Prosecution Service

Defendant/appellant

Anderson

Claimant/respondent

Procedural Posture

Appeal (civil) / Court of Appeal Judgment on Conjoined Appeals From the High Court (administrative Court)

Legal Issues

  1. 1 Whether receivers appointed under the Criminal Justice Act 1988 and Drug Trafficking Act 1994 may recover their remuneration and expenses from assets under their control prior to a confiscation order being made; Whether unconvicted or acquitted defendants or third parties are liable for receivership costs; Compatibility of the statutory scheme with Article 1 of the First Protocol ECHR

Ratio Decidendi

Receivers appointed under the Criminal Justice Act 1988 and Drug Trafficking Act 1994 are entitled to recover their remuneration and expenses from the assets under their control prior to the making of a confiscation order, unless the statute expressly provides otherwise. The statutory scheme does not require the prosecution to bear these costs except as a last resort, and this approach is not incompatible with Article 1 of the First Protocol ECHR. The court should, however, exercise careful control over the appointment and remuneration of receivers to avoid disproportionate impact on defendants and third parties.

Court Disposition

Appeals allowed; orders of the High Court set aside.

Orders

  • Receivers may recover their remuneration and expenses from assets under their control unless and until a confiscation order is made.
  • The prosecution is not required to pay receivership costs except where no assets are available or as provided by statute.