Page 45 - Real Rochdale Issue 22 Summer 2024
P. 45

POST 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                                              Risks and Challenges


          English law allows any person or organisation        While private prosecutions offer benefits, they
          to initiate a private prosecution.                   also come with significant risks and challenges:


          This means that private individuals, as well as      •  Cost: private prosecutions can be
          companies, can prosecute alleged offenders              extremely costly, with the organisation
          without the involvement of public prosecuting           bearing all legal costs upfront. If the case
          authorities like the Crown Prosecution                  fails, they may not recover these costs.
          Service (CPS).
                                                               •  Reputation: companies must consider the
          The legal basis for this is found in the                potential reputationaldamage that could
          Prosecution of Offences Act 1985 and the                arise from pursuing legal action, especially
          Criminal Procedure Rules, which govern the              if the case garners public or media
          conduct of these prosecutions.                          attention.


          Private Prosecution – Why?                           •  Legal and ethical questions: there are
                                                                  complex legal and ethical issues involved,
          Commercial organisations may choose to                  including the potential for conflicts of
          pursue private prosecutions for several                 interest and the fairness of the
          reasons:                                                prosecution.


          •  Efficiency and control: companies often           The Post Office Horizon scandal is a
              perceive private prosecutions as a faster        prominent example where the misuse of
              alternative to public prosecution, giving        private prosecution power had devastating
              them more control over the handling of the       effects.
              case.
                                                               Hundreds of sub-postmasters were
          •  Deterrence: by taking legal action                wrongfully prosecuted based on faulty data
              independently, companies can send a              from the Horizon IT system.
              strong message to deter future offences
              against them.                                    This situation highlights the risks of serious
                                                               injustices when commercial organizations
          •  Resource allocation: in some cases, public        exercise prosecutorial powers without
              authorities may lack the resources or the        adequate oversight.
              will to prosecute certain crimes, such as
              fraud or intellectual property theft, leading    In the next article we will consider broader
              companies to take matters into their own         implications of IT failures in legal and business
              hands.                                           contexts.



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