Application for liability order

Arnold Layne made this Freedom of Information request to Melton Borough Council This request has been closed to new correspondence. Contact us if you think it should be reopened.

The request was partially successful.

Dear Melton Borough Council,

In reference to the Council Tax (Administration & Enforcement) Regulations 1992 (Reg 34. Application for liability order)

Please supply information to identify the £67.50 summons costs incurred by Melton Borough charge payers in relation to Council Tax recovery (from a legal standpoint):

Q1. Has the approval of these costs by Leicestershire Treasurer's Association any legal authority?

(Would for example a group of friends in a pup carry any more or less weight in the eyes of the law if approved by them)

Q2. Which Act of Parliament or Statutory Instrument provides for a pre-determined award of costs, agreed between the Council and Magistrates court, for issuing a summons in advance of the court hearing?

Q3. If relating to court costs, are they Magistrates' court costs?

Q4. If Magistrates' court costs, which Act of Parliament or Statutory Instrument provides for the award of these?

Q5. If the Magistrates' Court Act 1980, is s64 (Power to award costs and enforcement of costs) the appropriate section?

Q6. On laying a complaint in the Magistrates' Court for the issue of summons, please specify whether the application is made under s1 or s51 of the Magistrates' Courts Act 1980.

Yours faithfully,

Arnold Layne

Melton Borough Council

Our Ref: 377586

Directline: 01664 502 502

Email: [1][Melton Borough Council request email] 

Date: 22/04/2013

Mr Arnold Layne,
 

Dear Mr Layne,

Freedom of Information Request

Thank you for your request for information made under the Freedom of
Information Act 2000 dated 16/04/2013. We can confirm receipt of your
request and we will be issuing a response within 20 working days.

In the meantime, if I can be of any further assistance then please do not
hesitate to contact me.

Yours Sincerely,

Linda Burn,
Customer Services Teamleader

show quoted sections

References

Visible links
1. mailto:[Melton Borough Council request email]
2. http://www.melton.gov.uk/

Sarah Matthews, Melton Borough Council

Dear Arnold Layne

 

I write in respect of your Freedom of Information Act Request of 22^nd
April 2013.  For details of our response please refer to the information
provided below, as highlighted, by Mr M Bowen Citizen Wellbeing Manager:

 

Q1. Has the approval of these costs by Leicestershire Treasurer's
Association any legal authority?

(Would for example a group of friends in a pup carry any more or
less weight in the eyes of the law if approved by them)

 

The approval of the Costs is made by the Magistrates Court, through Nick
Watson, Clerk to the Justices.

Q2. Which Act of Parliament or Statutory Instrument provides for a
pre-determined award of costs, agreed between the Council and
Magistrates court, for issuing a summons in advance of the court
hearing?

Council Tax (Administration and Enforcement) Regulations (1992/613)

Q3. If relating to court costs, are they Magistrates' court costs?

£3 of the £67.50 Summons costs are Magistrate Court Costs.

Q4. If Magistrates' court costs, which Act of Parliament or
Statutory Instrument provides for the award of these?

Magistrates Court Act 1980

Q5. If the Magistrates' Court Act 1980, is s64 (Power to award
costs and enforcement of costs) the appropriate section?

This is a matter you may wish to take up with the Magistrates Court as
this is not a matter for the Council.

Q6. On laying a complaint in the Magistrates' Court for the issue
of summons, please specify whether the application is made under s1
or s51 of the Magistrates' Courts Act 1980.

The Council’s application for the issue of a summons is made under Council
Tax (Administration and Enforcement) Regulations (1992/613) Regulation 34.

You would need to check with the Magistrates Court under which section
they authorise the actual issue of the summons under.

I trust this information is of assistance to you.

 

Yours sincerely

 

Sarah Matthews

Customer Services/Admin

Melton Borough Council

01664 502502

 

show quoted sections

References

Visible links
1. http://www.melton.gov.uk/

Dear Melton Borough Council,

Please pass this on to the person who conducts Freedom of Information reviews.

I am writing to request an internal review of Melton Borough Council's handling of my FOI request 'Application for liability order'.

Q1.
Could you please check whether you meant that the costs were agreed by the Magistrates' court, and the costs are in fact approved by Leicestershire Treasurer's Association.

If this is the case would you please supply the information in terms of the original request.

Q2.
I have looked under Regulation 34 of the Council Tax (Administration and Enforcement) Regulations 1992 and found that they allow only for a sum of an amount equal to the costs reasonably incurred by the authority.

Nowhere does it provide for a pre-determined award of costs, agreed between the Council and Magistrates' court.

Q3.
Your response specified the Magistrates' Court fees (not costs) which are payable per case on laying the complaint as listed in the Magistrates Courts Fees Statutory Instrument.

The information I wanted was whether the costs for summons (and possibly liability order) were awarded by the court (court costs) and if so were they Magistrates court costs.

Q5.
Your cooperation would be appreciated if it could be confirmed whether or not s64 of the Magistrates' Court Act 1980 was the appropriate section for the award of costs.

Q6.
Regulation 34 of SI 1992/613 is the enactment which confers power on the Magistrates' Court to issue a summons. The court issuing the summons will be doing so on the complaint made by the council under either section 1 or 51 of the Magistrates' Courts Act 1980.

Your cooperation would be appreciated if it could be confirmed which section (1 or 51).

A full history of my FOI request and all correspondence is available on the Internet at this address:
http://www.whatdotheyknow.com/request/ap...

Yours faithfully,

Arnold Layne

Dear Sarah Matthews,

Would you please acknowledge my request for review.

Yours sincerely,

Arnold Layne

Sarah Matthews, Melton Borough Council

Dear Arnold Layne

I write to acknowledge your request for a review of the original response to your Freedom of Information Act Request. I confirm your request for review received on 22nd April will be responded to within the 20 day time frame.

Yours sincerely

Sarah Matthews

show quoted sections

Sarah Matthews, Melton Borough Council

Dear Mr Lane

 

I write further to your Request for a Review in your email of 25^th April
2013 in respect of your Freedom of Information Act Request.  Please refer
below to the information supplied by Mr Shields, Financial Inclusion
Officer by way of response:

 

I am writing to request an internal review of Melton Borough

     Council's handling of my FOI request 'Application for liability

     order'.

    

     Q1.

     Could you please check whether you meant that the costs were agreed

     by the Magistrates' court, and the costs are in fact approved by

     Leicestershire Treasurer's Association.

    

     If this is the case would you please supply the information in

     terms of the original request.

 

      Answer: For clarification, the level of costs was approved by the
Justice's Clerk for the Leicestershire and Rutland Magistrates Court not
by the Leicestershire    Treasurers Association

    

     Q2.

     I have looked under Regulation 34 of the Council Tax

     (Administration and Enforcement) Regulations 1992 and found that

     they allow only for a sum of an amount equal to the costs

     reasonably incurred by the authority.

    

     Nowhere does it provide for a pre-determined award of costs, agreed

     between the Council and Magistrates' court.

    

      Answer: S34 of the Council Tax (Administration and Enforcement)
Regulations 1992 provides that a liability order shall consist of the sum
payable and an amount equal      to the costs incurred by the applicant
and in obtaining the order. These costs incurred by the Council in seeking
a liability order are incurred through following     a procedure and will
be the same for any matter. These costs were submitted to the Court and
approved as being reasonably incurred when a liability order is  
progressed to the stage of seeking a summons.     

 

     Q3.

     Your response specified the Magistrates' Court fees (not costs)

     which are payable per case on laying the complaint as listed in the

     Magistrates Courts Fees Statutory Instrument.

    

     The information I wanted was whether the costs for summons (and

     possibly liability order) were awarded by the court (court costs)

     and if so were they Magistrates court costs.

 

      Answer: The costs are awarded by the Magistrates Court of the £67.50
total costs £3.00 is the Magistrates Court Fee the remainder are an amount
equal to the costs   reasonably incurred by the Council

    

     Q5.

     Your cooperation would be appreciated if it could be confirmed

     whether or not s64 of the Magistrates' Court Act 1980 was the

     appropriate section for the award of costs.

     

      Answer: Costs are awarded under the Council Tax (Administration and
Enforcement) Regulations 1992 not the Magistrates' Court Act.

    

 

     Q6.

     Regulation 34 of SI 1992/613 is the enactment which confers power

     on the Magistrates' Court to issue a summons. The court issuing the

     summons will be doing so on the complaint made by the council under

     either section 1 or 51 of the Magistrates' Courts Act 1980.

    

     Your cooperation would be appreciated if it could be confirmed

     which section (1 or 51).

 

      Answer:  The application is instituted by making a complaint to a
justice of the peace and requesting the issue of a summons directed to the
liable person to appear       before the court to show why he/she has not
paid the sum which is outstanding - Regulation 34(2) Council Tax
(Administration and Enforcement) Regulations 1992     (Statutory
Instrument 613). You may also wish to refer to the Magistrates Court for
reference to the Sections and Act (or any other legislation) that
authorises it’s     function around this area.

    

I trust this information is of assistance to you.

 

Yours sincerely

 

 

Sarah Matthews

Customer Services/Admin

Melton Borough Council

01664 502502

 

show quoted sections

References

Visible links
1. http://www.melton.gov.uk/

Dear Sarah Matthews,

In regards Q1, please refer to my response made to Hinckley and Bosworth Borough Council at this link:

https://www.whatdotheyknow.com/request/a...

For Q2. you have supplied the same answer as that in a request made to Hinckley and Bosworth Borough Council. I have responded to that on above link.

For your reference I will reporoduce it here:
Q2.
It is stated in the response that these "costs incurred by the Council in seeking a liability order are incurred through following a procedure and will be the same for any matter".

This is irrelavent because one of the major factors determining the level of costs per individual, is the number of defendants the total incurred costs must be split between. The number may vary for several reasons, one of which may be waived costs in exchange for making payment arrangements with the council (Direct Debit for example).

The costs must also be justified in relation to any individual case. Please refer to the "Council Tax Practice Note No. 9" which provides the following guidance :

http://data.parliament.uk/DepositedPaper...

"3.18...The order will include the costs reasonably incurred by the authority in securing the order. Whilst it is likely that authorities will have discussed a scale of fees with the Clerk to Justices it should be recognised that the Court may wish to be satisfied that the amount claimed by way of costs in any individual case is no more than that reasonably incurred by the authority.

3.3 The form of the council tax summons is not prescribed and authorities should liaise with the Clerk to the Justices to agree an acceptable format.......The summons should set out the sum outstanding for which the authority is applying for a liability order. It can also state the costs incurred to date and point out if these costs plus the sum outstanding are paid then the authority will not proceed with the application for a liability order."

Please see "ADDITIONAL INFORMATION" in regards the remarks made about costs being "submitted to the Court and approved as being reasonably incurred when a liability order is progressed to the stage of seeking a summons".

For Q5 & 6. you have supplied the same answer as that in a request made to Hinckley and Bosworth Borough Council. I have responded to that on above link.

For your reference I will reporoduce it here:

Q 5 & 6. (Q4 Aslo from H & BBC)
The response here – if it were true – is an admission that the application to the Magistrates, court is a complete sham and the association of the Magistrates' court is purely symbolic. The procedure would be fake, made evident by the council's claim that the court plays no part in awarding costs.

Do councils put on this elaborate theatre production when in fact they could help themselves to £millions of pounds in costs without the need of calling it court action?

Regulation 34(2) of SI 1992/613 is the enactment which confers power on the Magistrates' Court to issue a summons. The court issuing the summons – if not a complete sham – will be doing so on the complaint made by the council under either section 1 or 51 of the Magistrates' Courts Act 1980.

There are "Procedure Rules" governing the manner in which complaints/information is made/laid to/in the Magistrates' court. In a correctly carried out procedure, there are prescribed forms relevant to the application type and governed by the respective Procedure Rules. I would expect a council making applications relating to thousands of defendants each year would have the template of the correct prescribed form which would state the Procedure Rules the applications were being made under.

ADDITIONAL INFORMATION

In relation to summons costs it appears no law states that a local authority may be awarded costs by the Magistrates Court at that stage in the proceedings. Firstly, because there has not been a hearing and secondly because councils set the level (see more detail later).

The costs at the summons stage are just the council's estimate for which there is no court order compelling the debtor to pay. Having said that, paying or not paying the estimate influences whether or not the council may proceed with the application at which point if the order is granted, the estimate will then be enforceable.

The costs would then presumably be awarded under powers given the Magistrates' court (more likely than not section 64 of the MCA 1980). But until that point when the application is heard these cost have not been awarded by the court. Incidentally, this would suggest any challenge to their reasonableness would be exclusively with the Local Authority, owing to the fact there has been no case heard by the court at that point.

The council can not rely on a prior agreement with the Magistrates' court on the matter of costs as there is nothing in law obliging an agreement is made. Several sources have provided evidence that councils set the level; confirmation has been found in a Cabinet Report of the Head of Revenue and Benefits in a Council Tax & NNDR review of court costs for Eastleigh Borough Council.

http://www.eastleigh.gov.uk/meetings/doc...

"Proposals for Future Charges

8. Previously any increases in costs charged by the Council needed the approval of the Clerk to the Magistrates Court to ensure that the costs being levied were reasonable.

9. After contacting the Clerks to the Magistrates’ Court they have now confirmed that it is for the Council to decide on an appropriate level of fees in order to cover their costs and no approval is required from them."

There appears nothing to substantiate costs may be awarded by the Magistrates' court on applying for the summons. Unless I'm missing something the application is merely to request that a summons is issued to the person for a court hearing as per regulation 34(2) of SI 1992/613.

Yours sincerely,

Arnold Layne

Sarah Matthews, Melton Borough Council

Dear Mr Lane

Thank you for your correspondence below. I confirm this has been forwarded to the relevant department and a reply will be sent to you in due course.

Yours sincerely

Sarah Matthews
Customer Services/Admin

show quoted sections

Dear Sarah Matthews,

Can I remind you of your email dated 30 May 2013.

Yours sincerely,

Arnold Layne

Sarah Matthews, Melton Borough Council

Dear Mr Layne

I write to confirm that I have recontacted the service to whom your additional correspondence was forwarded to for comment. I have asked them to reply to you directly. If you do not receive a response within fourteen days then please contact me again.

Kind Regards

Sarah Matthews
Customer Services/Admin
Melton Borough Council
01664 502502

Please note my hours of work are Mon-Fri 8.45am to 14.45pm

show quoted sections

Martyn Bowen, Melton Borough Council

Dear Mr Layne,

Further to your email of 23 May 2013, please find response to the queries/observations that you raised. Please accept my apologies for the delay in replying.

Q1.

Leicestershire Treasurer’s Association agree a common level of costs across Councils, which is subject to approval by the Magistrates’ Court every three years – the base is then increased in line with inflation for the other years, again subject to approval by the Court.

To confirm again, the approval rests with the Leicestershire and Rutland Magistrates’ Court; Nick Watson (Justices’ Clerk) refers any request to the bench Chairman who considers data provided by the Authorities to satisfy that the sum sought is reasonable. Where a request is made to increase costs, the Authorities must provide information justifying the increase.

Q2.

The costs are those reasonably incurred by the Councils – it would be impractical to assess each “standard” case separately, given the numbers that are dealt with. The magistrates are satisfied of the minimum costs that are incurred in obtaining a liability order.

Council Tax (Administration and Enforcement) Regulations 1992 (Statutory Instrument 613) provides that the Court, when making a liability order, shall also order “a sum of an amount equal to the costs reasonably incurred by the applicant in obtaining the order.” A standard sum is sought and the defaulter notified of the request that will be made to the Court. The Court will determine whether the sum sought is equal to the costs reasonably incurred.

Q5 & Q6

S64 MCA 1980 is a general power for award of costs (which includes the reimbursement of the fee paid by the complainant) in relation to a complaint. However, the specific power in relation to the award of costs on application for a liability order are provided within the regulations under SI 613 1992 (see above).

S51 MCA 1980 is the general power in relation to any complaint being made. However, specifically to these matters, Reg 34 (2) SI 613 1992 refers to the application to the Magistrates’’ Court for a liability order being instituted by making a complaint to a justice of the peace and requesting the issue of a summons directed to the liable person to appear before the Court to show why he/she has not paid the sum which is outstanding.

Martyn Bowen
Place Manager
Melton Borough Council
Parkside
Station Approach
Melton Mowbray
LE13 1GH
01664 502462

show quoted sections

Dear Mr Bowen,

"Q5. Your cooperation would be appreciated if it could be confirmed

whether or not s64 of the Magistrates' Court Act 1980 was the appropriate section for the award of costs.

Answer: Costs are awarded under the Council Tax (Administration and Enforcement) Regulations 1992 not the Magistrates' Court Act."

You may or may not find it useful to have a copy of this for your records:

(Recovery of Court Costs – Council Tax Liability Orders)

http://www.scribd.com/doc/231996640/Reco...

Yours sincerely,

Arnold Layne