Maxwell v Department of Trade and Industry: CA 1974

The plaintiff complained that adverse findings had been made against him by inspectors acting under the companies acts. The inspectors conducted their inquiries in private and heard evidence from individuals. They then informed the persons in respect of whom adverse evidence had been given about the thrust of that evidence but did not provide them with a transcript of the evidence. No cross-examination of witnesses took place.
Held: There was no obligation to furnish draft findings to those persons against whom adverse evidence had been given.
Lord Denning MR considered just what fairness demanded when writing a report which was critical of a person, saying: ‘Forbes J. [to whom the applicant had applied for an injunction to restrain the inspectors from proceeding with their investigation] thought that, in order to do what was fair, after hearing the evidence and studying the documents, the inspectors ought to come to a conclusion (which was necessarily tentative) and put the substance of that conclusion to the witness. He was led to that view by the observation of Sachs LJ in Re Pergamon Press Ltd [1970] 3 All ER at 544, [1971] Ch 405. I do not think that is right. Just think what it means. After hearing all the evidence the inspectors have to sit down and come to tentative conclusions. If these are such as to be critical of any of the witnesses, they have to re-open the inquiry, recall those witnesses, and put to them the criticisms which they are disposed to make. What will be the response of those witnesses? They will at once want to refute the tentative conclusions by calling other witnesses, or by asking for further investigations. In short, the inquiry will develop into a series of minor trials in which a witness will be accused of misconduct and seek to answer it. That would hold up the inquiry indefinitely. I do not think it is necessary. It is sufficient for the inspectors to put the points to the witnesses as and when they come in the first place. After hearing the evidence, the inspectors have to come to their conclusions. These need not be tentative in the least. They can be final and definite, ready for their report.’

Judges:

Lord Denning MR

Citations:

[1974] QB 523, [1974] 2 All ER 122

Cited by:

CitedShoesmith, Regina (on The Application of) v OFSTED and Others CA 27-May-2011
The claimant appealed against dismissal of her claim. She had been head of Child Services at Haringey. After the notorious violent death of Baby P, the Secretary of State called for an inquiry under the Act. He then removed her as director. She . .
Lists of cited by and citing cases may be incomplete.

Natural Justice

Updated: 15 May 2022; Ref: scu.440285