Summer 2024Post Office Horizon Scandal

This is the second in a series of articles in which Molesworths’ dispute resolution team will review the Post Office Horizon scandal, the issues arising from it, and what might happen next.

This article considers the function and use of private prosecutions by commercial organisations, exploring both the legal framework and the practical implications of such actions.

The Law

English law allows any person or organisation to initiate a private prosecution.

This means that private individuals, as well as companies, can prosecute alleged offenders without the involvement of public prosecuting authorities like the Crown Prosecution Service (CPS).

The legal basis for this is found in the Prosecution of Offences Act 1985 and the Criminal Procedure Rules, which govern the conduct of these prosecutions.

Private Prosecution – Why?

Commercial organisations may choose to pursue private prosecutions for several reasons:

• Efficiency and control: companies often perceive private prosecutions as a faster alternative to public prosecution, giving them more control over the handling of the case.
• Deterrence: by taking legal action independently, companies can send a strong message to deter future offences against them.
• Resource allocation: in some cases, public authorities may lack the resources or the will to prosecute certain crimes, such as fraud or intellectual property theft, leading companies to take matters into their own hands.

Risks and Challenges

While private prosecutions offer benefits, they also come with significant risks and challenges:

• Cost: private prosecutions can be extremely costly, with the organisation bearing all legal costs upfront. If the case fails, they may not recover these costs.
• Reputation: companies must consider the potential reputationaldamage that could arise from pursuing legal action, especially if the case garners public or media attention.
• Legal and ethical questions: there are complex legal and ethical issues involved, including the potential for conflicts of interest and the fairness of the prosecution.

The Post Office Horizon scandal is a prominent example where the misuse of private prosecution power had devastating effects.

Hundreds of sub-postmasters were wrongfully prosecuted based on faulty data from the Horizon IT system.

This situation highlights the risks of serious injustices when commercial organisations exercise prosecutorial powers without adequate oversight.

In the next article we will consider broader implications of IT failures in legal and business contexts.