Tag: appeals

Commercial prejudice: the importance of precise and limited redactions

Posted on | by Robin Hopkins

In the recent decision in UK Coal Mining v IC, Nottinghamshire County Council & Veolia [2012] UKUT 212 AAC, the Upper Tribunal has dismissed an appeal concerned with section 43(2) of FOIA (commercial prejudice): the First-Tier Tribunal (decision EA/2010/0142, on which see our post here) had been entitled to find that only very limited redactions could be made to provisions from a PFI contract for a waste incinerator. Upper Tribunal Judge Wikeley’s decision, while largely fact-specific, illustrates two significant points.

First, appeals against FTT decisions are liable to fail where they are simply attempts to re-run questions of fact and judgment.

Secondly, those seeking to rely on section 43(2) FOIA should be as precise as possible. Sometimes, for example, a clause in a contract might appear commercially sensitive at first glance, but upon closer scrutiny all that really warrants withholding might be the numbers.

The background to the decision is briefly as follows. UK Coal entered into a complex PFI agreement with the Council for an option to lease a former colliery site the site, with Veolia then sub-leasing the site from the Council to operate an incinerator. Upon a request for the contracts, the Commissioner found that regulation 12(5)(e) of the EIR (confidentiality of commercial or industrial information) was engaged, but that the public interest favoured disclosure. Upon what was effectively UK Coal’s appeal, the FTT found that the matter should have dealt with under FOIA rather than the EIR. Section 43(2) was engaged, but the public interest favoured disclosure of at some of the disputed information. Eventually, the Tribunal largely endorsed the Commissioner’s (very limited) redactions, rejecting the much more extensive redactions proposed by UK Coal. UK Coal’s appeal to the Upper Tribunal failed.

As regards challenges to the FTT’s decision, Upper Tribunal Judge Wikeley said that it was important that the FTT’s statement of reasons is read as a whole, rather than highlighting particular phrases and taking them out of their wider context. The FTT had allowed for the redaction of what it called “core financial information”, but this was simply a convenient shorthand not amenable to close textual analysis or to legal challenge per se.

Notably, he said that this of the FTT’s assessment:

“This was a quintessential issue of fact and degree for the tribunal at first instance to determine… The bottom line is that UK Coal is essentially seeking to re-argue questions of fact and judgement which have been litigated and adjudicated upon on their merits by the FTT.“

Judge Wikeley also warned that the caution against relying too heavily on other FTT decisions (see the Upper Tribunal’s decision in LB Camden v IC and Voyias GIA/2986/2011) applies with even greater force to attempts to rely on other decision notices by the ICO (as UK Coal sought to do here).

Turning to the section 43(2) redactions urged by UK Coal, the Upper Tribunal considered these to be “far too wide-ranging” and its arguments unsustainable. Some of the terms it sought to withhold were commonplace to commercial agreements. The FTT had approached its redaction analysis with care and precision, and correctly struck a balance between protecting UK Coal’s proper commercial interests under section 43 while ensuring that other information is disclosed. In some cases, the FTT allowed only for the redaction of figures rather than terms as a whole. This nonetheless ensured that a member of the public would have “no idea as to either the commercial methodology or the key financial and other numerical variables used”.

The Upper Tribunal’s decision cites specific examples of the scope of redactions to commercial terms which the FTT applied and which the Upper Tribunal found to be entirely understandable. The examples merit close attention by those seeking to withhold information in similar cases.

Robin Hopkins

PARTIES MAY APPEAL AGAINST DECISION NOTICES IN THEIR FAVOUR

Posted on | by Robin Hopkins

Shepard v IC and West Sussex County Council (GIA/1681/2010) involved the Commissioner upholding the appellant’s complaint against the local authority, and issuing a decision notice in his favour. That notice required the authority to search for specified information and to provide it to the Claimant if found. The authority informed the appellant that its search had been fruitless. Apparently therefore, it had complied with the decision notice, but the appellant received no information.

At first instance, his appeal failed, partly on the grounds of the well-established principle that a successful party should not be permitted to bring an appeal. The Upper Tribunal disagreed, and granted permission to appeal, observing that the aforementioned principle “surely relates to judicial decisions by courts and tribunals; it does not necessarily apply to decisions by administrative first-instance decision-makers or independent office-holders”.

Nor was the wording of FOIA itself a barrier to such appeals: section 57(1) expressly confers a right of appeal on both parties, and not simply “the losing party”. Furthermore, both the steps prescribed in a decision notice and the timing of such steps are matters of discretion for the Commissioner. Unlike the enforcement of a decision notice, such questions of discretion are within the Tribunal’s jurisdiction.

It is not clear, however, whether a challenge to a first-instance Tribunal’s refusal to entertain an appeal lies by way of an appeal to the Upper Tribunal or by way of judicial review. A test case (combined references of CH/1758/2009 and JR/2204/2009) will determine this question shortly. In the present case, the Upper Tribunal therefore granted permission to apply for judicial review as a precaution.