Understand Your Rights. Solve Your Legal Problems

The High Court decision of Haskell v Haskell [2020] EWFC 9 drew headlines after Preston Haskell IV was ordered to pay his wife just under £6,000,000, despite claiming to have a negative net asset position of minus £50,000,000. Below, Lawyer Monthly hears from Richard Kershaw, partner at Hunters Law LLP, who has analysed the case.

The case underlines that London's divorce judges are willing and able to grapple with sophisticated financial arrangements and look behind complex structures. They take a dim view of attempts to mislead the court.

In Mr Haskell's case, the Court quickly identified that many of the debts said to be owed by him or by corporate entities in which he had an interest were owed either to other entities in which he had an interest, to his father, or to family trusts. The Court attributed "no weight" to these "money-go-round" debts.

Whilst Mr Haskell told the Court that he was suffering liquidity problems, meaning he had no funds available to make a payment to his wife, the Court looked at whether his behaviour was consistent with this. His wife had pointed to social media posts showing that he had taken holidays to South Africa, Turkey, St Tropez, Ibiza, and Switzerland between April and July 2019, during which time he had also posed with a 1966 bottle of Château Haut-Brion.

The judge also noted that in his "supposed time of crisis" Mr Haskell had not sought to sell any assets (such as his "magnificent" Cape Town villa), nor had he let go any members of his staff. The court was also influenced by the fact that Mr Haskell had only begun to claim his financial position was in decline after the wife made clear that there would not be a reconciliation between them. The judge saw and quoted from text messages the husband had sent evidencing his change in approach, finding that the husband's behaviour amounted to "insidious coercive control".

Overall, the Court saw that "the accountancy picture is belied by the reality". The Court's refusal to accept the husband's accountancy evidence at face value, and determination to look at the reality of his financial position, continues a trend of no tolerance for non-disclosure.

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In the Court of Appeal case of Moher v Moher [2019] EWCA Civ 1482, the Court held that where someone has refused to make full financial disclosure, the court can infer that their resources are such that the award the court intends to make represents a fair outcome. The Court of Appeal emphasised that the family courts should be astute to ensure that a non-discloser should not be able to procure a better result through non-disclosure than if the truth had been told.

In Goddard-Watts v Goddard-Watts [2019] EWHC 3367 (Fam), a financial settlement made following divorce was set aside by the court for a second time after the husband had repeatedly failed to make full disclosure of his assets.

The initial order, made in 2010, had been set aside by the court after the wife discovered that the husband had failed to disclose substantial trust interests; her award increased by £6,200,000 when these were taken into account in a 2016 judgment. That order was in turn set aside after it emerged that the husband had failed to disclose negotiations to sell his business for £65,000,000, when it had been valued at £16,400,000 in the proceedings.

Ultimately, Mr Haskell's approach undoubtedly increased the wife's costs, which he had to pay, and meant the judge took a dim view of him. Moher made clear the courts' determination not to let non-disclosers profit from their conduct, and Goddard-Watts illustrates that even where a deception succeeds initially, a settlement may be over-turned if the deception comes to light. The clear message from these recent decisions is that, ultimately, it is likely to be counter-productive to seek to mislead the court.

Legally, you can represent yourself in the court of law. However, medical malpractice cases are quite serious. Doctors, especially those in highly coveted fields such as surgery, have spent most of their teen years and adult lives training to become medical professionals, and they will protect that investment, which could be in the thousands of dollars. The hospitals they work for will provide them additional benefits if they accept the medical malpractice insurance offered to them. So, do you need a lawyer for a medical malpractice case? The doctors protecting themselves will have their own tough lawyers, so you should, too.

What sets medical malpractice apart from other types of personal injury lawsuits is that the harm usually can last a lifetime, or have serious consequences for the victim’s long-term health. They will require expensive medical care. The insurance companies will find every defense for their clients.

Proving Liability

Gathering enough evidence to support your case is an important part of going to court. Without sufficient evidence, the case will be thrown out. Compared to other types of personal injury cases, medical malpractice is unique. In a car accident, for example, the police will file a report and explain who they think is at fault. It is usually pretty clear what happened because the evidence is very large before one’s eyes. It is no exaggeration, however, to say that the human body is extremely complex, and harm may not always be so apparent. The doctor’s attorneys will try to refute your evidence with their own medical explanations.

Access To Medical Experts

In a case such as this one, a third-party expert may need to be called in to give their testimony. This can be an evaluation and analysis of the facts presented in the case along with an explanation of how the injury occurred, what could have prevented it, if the error was a common one or one that could have easily happened, and whether or not criminal intent could have been behind the action. They will know about the standard methods and expectations of providing care. And a great attorney has spent years cultivating these professional relationships with expert witnesses to provide you the best counsel and representation.

Do I Need A Personal Injury Attorney?

Medical malpractice falls under the umbrella of personal injury law, along with many other specializations, from nursing home abuse to dog bites to car accidents. So when you are looking for an attorney to represent you after you sustained an injury while under the care of a medical provider, or a loved one was wrongfully killed by a healthcare provider, you want to be sure that the attorney you hire specializes in this area. If you intend to hire an attorney who specializes in medical malpractice, you should first learn more about their profession.

Because medical malpractice laws can vary in each state, it is also advised to look for an attorney who is not only in your state but is also a member of the state bar. One such law that affects Californians is the Medical Injury Compensation Reform Act of 1975. This drove down the cost of premiums to healthcare providers so they could have sufficient coverage. Your attorney will be able to provide you accurate and relevant legal counsel for your specific case.

Awareness of the gender pay gap is at a high, and businesses are coming under increasing scrutiny for their payment practices. Claire Woolf, a Managing Editor at Sparqa Legal, weighs in on the legal issues involved with equal pay and advises businesses on how to avoid the damages that may be caused by unchecked pay disparity.

In January, it was announced that Newswatch presenter Samira Ahmed had won her equal pay case against the BBC, leaving the corporation facing a bill for hundreds of thousands of pounds in back pay and the prospect of similar claims being brought by others.

Ahmed successfully argued that her work is of equal value to presenter Jeremy Vine, who was paid over six times more than her per episode for his work on Points of View. The BBC tried to argue the two presenters perform different roles, requiring different skills but the unanimous judgment said the BBC failed to prove the pay gap wasn’t discriminatory.

The case serves as a useful reminder of the risks of falling foul of the equal pay rules. To help your business avoid being exposed to potential staff grievances, reputational damage or even tribunal claims for compensation, here's everything you need to know about equal pay.

So, what exactly is 'equal pay'?

'Equal pay' refers to the fact that women and men have the legal right, set out in the Equality Act 2010, to be paid equally for equal work. In this context, 'pay' refers not only to staff members' wages, but also their contractual benefits packages, including non-discretionary bonuses, performance-related benefits, company cars, sick pay, holiday pay etc.

How do the equal pay rules work in practice?

The general rule is that your staff must be paid the same as other members of your staff, either current or former, of the opposite gender who are, or were, carrying out equal work to them.

For example, if you take on a new male employee and he has negotiated a higher salary than the salary you pay an existing female employee in the same role, her employment contract will normally be automatically modified by the Equality Act to ensure she is paid the same amount as him.

What is equal work?

'Equal work' doesn't mean that your staff must be doing identical work, but section 65 of the Equality Act sets out that it must be work which is either similar, e.g if the roles involve similar tasks or require similar skills, rated as equivalent (eg placed in the same grade) by a job evaluation scheme you’ve carried out, or work of equal value.

Work of equal value is work that makes equal demands of your staff, ie the roles require a similar level of skill, training or decision-making even though the jobs are entirely different. For example, a tribunal found that a canteen assistant did work of equal value to three men, each employed as a painter, a joiner and a thermal engineer. Whether or not the roles are of equal value will come down to the specific nature of the work in question.

The BBC's legal team argued that Ahmed was paid the same as her Newswatch predecessor Ray Snoddy, and that he should be her pay comparator rather than Jeremy Vine. They argued that Vine and Ahmed’s roles were different, as the presenter of Points of View needed to have 'a glint in the eye' and to be ‘cheeky’. The employment tribunal found it difficult to translate this into the relevant skills, experience or qualifications required to do the job properly and found that their work was broadly similar and that Vine was a suitable comparator.

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Are there any exceptions to the equal pay rules?

The only exception to the equal pay rules is set out in section 69 of the Equality Act and explained by the House of Lords in Glasgow City Council v Marshall. This is that if you have a genuine and material reason for paying male and female staff members differently, that does not relate to gender, you may be justified in doing so. However, this exception won’t apply if there is another way of addressing the issue which leads to less or no discrimination.

There is no list of specified aims or practices that are justified; it will always depend on the particular situation.  In Dr Pamela Enderby v Frenchay Health Authority and Another, the court said it could be justified where the male comparator was more qualified than the woman and it was difficult to hire individuals with his particular skills or experience. In other cases, geographical differences have provided justification, e.g you have a staff member who works in London where the cost of living is higher, whilst another employee works at a location outside of London.

The BBC was unable to produce evidence to prove any of the material factors it put forward to defend the difference in pay, and the tribunal specifically commented on the lack of transparency in its pay structures.

Equal Pay Claim For Same Job

In this Article -  Thousands owed could amount to more than £30m.

The impact of coronavirus is widespread and global. In the face of a potential worldwide disaster, governments are begnning to adopt precautionary meaures and put in place tools for those that can't afford to be affected. According to Bob Trunchion, tax partner at MHA MacIntyre Hudson, a myriad of businesses becoming insolvent will only add salt to the wound.

The coronavirus threat is worrying enough for the UK economy but an upswing in company insolvencies in its wake would make the situation even worse.

Cash flow is the number one cause of business failure and the disruption the viral outbreak may bring could therefore lead to a substantial increase in business failures. The government’s COVID-19 action plan, published yesterday, claims the government will consider whether cash strapped businesses can use its Time to Pay (TPP) scheme, on a case-by-case basis, to make tax payments more manageable. We believe this will be an inadequate measure if the outbreak escalates.

TTP works well but the process is bureaucratic and HMRC requires a lot of information before agreeing it can be applied. The business also needs to formulate a repayment plan, which isn’t always possible in the midst of a crisis. In addition, TTP  doesn’t cover the major ongoing expense of business rates, only taxes administered by HMRC.

A major virus outbreak in the UK, that includes quarantine measures, falling demand for products and services and a lack of staff availability will put companies in a very difficult situation. While sales would fall, costs such as rents, rates, mortgages and payments to suppliers and staff will remain constant.

A major virus outbreak in the UK, that includes quarantine measures, falling demand for products and services and a lack of staff availability will put companies in a very difficult situation.

A key measure for the Chancellor to consider for the Budget is a ‘tax holiday’ for major business costs like rates, PAYE tax, national insurance contributions and VAT. The holiday could be implemented if the outbreak worsens and the economy suffers. Usually tax holidays or temporary reductions in tax are used to boost growth; but in this case would help prevent company bankruptcies.

In addition, HMRC needs to adapt and allow time to pay self-assessment income tax and corporation tax in more flexible ways. The upcoming budget is a key moment for Chancellor Rishi Sunak to reassure the business community. Hopefully he will rise to the challenge.

What's Next for Brexit?

With the UK now having left the EU, and the transition period underway, it’s time for businesses to start preparing for a new trading landscape. But where should they start, and which key dates could impact their plans, as the UK/EU trade negotiations begin?

Nick Farmer, international advisory partner at accountancy firm, Menzies LLP, explains what we can expect to see in the coming year.

Although the UK left the EU on 31 January, it will remain part of the EU customs union and single market until 31 December 2020. This means that during this transition period, businesses can continue to trade in the EU without tariffs, customs checks or other regulatory restrictions. For many, it’s basically business as usual for now.

Additionally, EU Directives will continue to apply during the transition period, and this can assist with eliminating withholding taxes on dividend, interest and royalty payments. However, as the UK has formally left the EU, there may be immediate implications for such payments from third countries where reliance is being placed on a tax treaty. For instance, this can arise in tax treaties with the US, where the limitation on benefits provision may require EU/EEA membership to benefit from reduced rates of withholding taxes.

Trade negotiations between the UK and EU will be ongoing throughout 2020, with the hope that a new UK/EU trade agreement will be in place by the end of the year. In relation to trade with non-EU territories, the UK currently benefits from EU trade agreements that cover more than 70 countries, and these will also fall away at the end of the year.

With so many new trade relationships to be forged before then, it is clear that these trade negotiations are likely to dominate the political agenda in 2020. Businesses may be tempted to wait to see if the current transition period will be extended, but this seems unlikely, as an extension of one or two years would only be possible if both the UK and EU agree to it, before 1 July 2020, and the UK government has currently ruled out this option.

It is clear that these trade negotiations are likely to dominate the political agenda in 2020.

Throughout the transition period, it will therefore be important for UK-based businesses to keep a close eye on the progress of all ongoing trade negotiations, paying particular attention to areas of the world where their goods or services are being sold. They should consider what trade agreements they are currently taking advantage of, and how they could adapt their footprint or trading activities if negotiations take a turn for the worse.

The US is an important export market for many UK companies, and the government is hoping to secure a favourable trade deal. However, there are some potential deal breakers in play, including the UK’s proposed Digital Services Tax, which could cause the US to impose punitive tariffs on selected UK imports. The forthcoming post-Brexit budget statement on 11 March could bring an announcement on this subject.

Among the key changes to take effect from the start of 2021 are the removal of EU tax directives. These are important to businesses that have activity in the EU. For instance, the Parent-Subsidiary Directive currently allows money to flow from EU subsidiaries to a UK-based parent company, without incurring a withholding tax liability whereas, after 31 December, reliance on tax treaties may result in local withholding tax of between 5 and 10 percent. Similarly, the removal of The EU Interest and Royalties Directive will affect cross-border interest and royalty payments made into a UK-based corporate entity in the same way.

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In preparation for the potential VAT and customs changes from 1 January 2021, businesses should consider mapping supply chains and pinpointing where tariffs, including import VAT and customs duties, may apply. Customer and supplier contracts should be reviewed in respect of terms of sale and delivery, in order to check which party is the importer of record and ensure the relevant Economic Operator Registration and Identification (EORI) numbers have been applied for.

Completion of customs declarations must be addressed, and key responsibilities within the business established. Employers should be asking questions about whether their staff are suitably trained, if additional staff may be required, what systems may be necessary, and where potential additional costs for undertaking the work, either in house, or externally through an agent, may arise. Quantifying these factors as far as possible can ensure they are in the best position to take advantage of any additional support that may be needed, for example, grants from HMRC.

If import VAT and customs duties are due to be paid, the cash flow impact of paying and reclaiming this should be considered, along with the actual cost of incurring customs duties, which are not reclaimable and so may affect pricing.

Businesses must start preparing for a very different trading and fiscal landscape from the start of next year. While there is still much uncertainty surrounding Britain’s free trade negotiations, there are clear steps that businesses can take now to mitigate the financial effects of the post-Brexit landscape.

In order to restrict the spread of the virus, people are being asked to self-isolate if they have visited certain areas of the world recently, even if they aren’t displaying any symptoms.

Self-isolation means remaining indoors in one place and avoiding contact with other people. People shouldn’t go to work, school or public areas, and should avoid using public transport.

Laura Kearsley, partner and solicitor in the employment team at law firm Nelsons, discusses what this means for employees – and whether they can expect to be paid for their absence during the quarantine period.

Will I get paid if I’m not at work due to self-isolation?

Strictly speaking, there is no right to sick pay for anyone in self-isolation as technically, it’s just a precaution and they are not considered ‘sick’.

However, Health Secretary Matt Hancock has said those who aren’t displaying symptoms but have been advised to stay away from work are entitled to take the time as sick leave.

If you’re not unwell, you may be able to work from home. But if this isn’t an option – for example, you work in a shop, hotel or factory – you will be entitled to sick pay, as per government advice.

Statutory sick pay (SSP) is available to those who are employed, earning at least £118 a week and have been off work for four consecutive days. The current rate of SSP is £94.25 per week and can be paid for up to a maximum of 28 weeks for the days employees usually work. SSP is payable after three ‘waiting days’ of absence. It’s up to your employer – and should be set out in your contract – as to whether you’re paid more than SSP.

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However, if you haven’t visited any of the areas the government has identified as being affected or at risk and you decide to self-isolate as a precaution, there is no statutory right to be paid if you aren’t sick or displaying symptoms. People who are prevented from working because of a risk to public health are able to claim universal credit.

Will I be paid if I have to care for someone else?

You are entitled to take a reasonable amount of emergency unpaid time off work to take care of your kids if there is unexpected disruption in their normal care arrangements – the closure of a nursery or school as a result of the coronavirus would qualify as an emergency. However, this is not time off to look after the child, but to make alternative arrangements for their care instead.

Many employers are more flexible though in these circumstances and will allow employees to take holiday at short notice or, if appropriate, to work from home or make the time up.

Should my employer be contacting me while I’m self-isolating?

There is no rule to say that your employer shouldn’t contact you when you’re off sick to discuss any work issues. In fact, employers are under a duty of care to check in with those who are absent. Regular contact with your boss during the quarantine period will also help to ensure a smooth return.

1. Select the Right Review Course and Study Materials for You

Before you begin to study for the LSAT, it is vital you select an LSAT review course that consists of the best study materials that best suit your learning style and background. Choosing the right-fit online prep course plays a crucial role in scoring high on the LSAT and getting into the law school you are eager to attend.

2. Write a Personal Statement

Although passing the LSAT is essential for admittance to law school, a successful LSAT score does not guarantee you entry. One of the best ways to make an admissions committee select you over another candidate is to write an excellent personal statement. The statement is your opportunity to show the admissions committee what makes you the ideal asset for the course of study. The way you present your background, experience, and training can make all the difference.

3. Plan Your Study Time Early

If you do not put in the number of hours required to learn the study material, you will not pass the LSAT. Likewise, if you do not have an organized structure to your learning, you are setting yourself up to fail. Ideally, you should start studying for the LSAT two or three months before the test. During those months, you should aim to study two to three hours per day, five days a week. You will need to block off the rest of your calendar and get your head down if you are serious about successfully passing the LSAT.

4. Practice Makes Perfect

You will need to spend many hours dedicated to completing LSAT practice problems if you want to ace the exam. You need to do this for various reasons. Practicing LSAT practice problems enables you to become familiar with how test questions are structured. You will also become familiar with the levels of difficulty that are included in test questions, as not every question will be of the same level of difficulty. Also, you simply need to familiarize yourself with LSAT questions as much as possible before the test comes around so that you are prepared to tackle anything the exam throws at you.

5. Focus on LSAT Logical Reasoning

To ace the LSAT, you will have to do well on the topic of Logical Reasoning. That is because Logical Reasoning makes up half of the LSAT score. So, although studying things like Logic Games and Reading Comprehension are important, studying Logical Reasoning has twice as much importance.

6. Take Practice Tests

Once you have spent time studying materials and practicing LSAT questions, it is best to take full-length LSAT practice tests. You should aim to take at least four full-length practice tests before the day of the real exam comes around. You will then be so knowledgeable about the test’s structure, format, and timing that you are sure to crush the LSAT.

7. Prepare for the Day of the Test

The day before the test date, prepare every aspect of the LSAT day. Ensure you have everything you need to take with you to the exam, know how you will get to the test center, and by what time. The more prepared you are for the day of the big test, the more you can focus on putting in your best performance to ace the LSAT.

The upcoming legal events in the US for 2020 will call for presenters and attendees who are not only lawyers but also other members of the international community who are willing to  share topics from their research and findings.

Here are some the best upcoming legal events in the US:

1. International Conference on Social Sciences and Humanities

March in Rockville & August in New Jersey

This conference is organized by the Research Association for Interdisciplinary Studies or RAIS. This event promotes collaboration of different professionals from the academe and researchers from various professions.  It promotes the study of diverse subjects from the perspective and approach of different disciplines. This conference will give lawyers the opportunity to work with professionals from other fields.

2. International Law Conference 

August in New Jersey & November in San Francisco

This event is attended by leading academic scientists, researchers, and scholars to discuss all aspects of the law. It provides a platform for other professionals to learn and share recent innovations, trends and concerns. This is also where lawyers share practical challenges they experience in the field and the solutions they have adopted. 

3. International Conference on Constitutional Law and Political Science 

November in San Francisco & November in San Francisco

This is a federated organization that draws together scholarly events for presentation valuable for students, academics and industry researchers. It focuses on all aspects of Constitutional Law and Political Science. It also calls professionals from different fields in different countries to come together and discuss Law and Political Science. If you are traveling from a country under The Visa Waiver Program (VWP), you should be able to prepare this requirement to be able to attend and present for this conference. If you have to buy or renew your visa, submit your 3-steps ESTA application form now and have it ready in no time. If your requirements are complete and your visa is processed, you can now attend more conferences and other events in the USA using the same visa for two years.

4. International Conference on Health Politics, Policy and Law 

December in New York

This international conference focuses mainly on all aspects of Health Politics, Policy and Law. Here, topics would include health policy management, systems and technologies used for healthcare and others that would also be beneficial for medical practitioners and allied health workers.

5. International Conference on Internet, Law and Politics 

January, 2021 in New York

This conference focuses on all aspects of the Internet, Law and Politics. The start of the new millennium has brought the age of the Internet and the discussion about the E-world would be beneficial for anyone. Important topics that would be discussed here are about data protection, taxations and ICTs, intellectual property, and the most pressing one is electronic voting. 

Ensuring that you are amenable to travel means that you would be able to attend various upcoming law events in the US. You do not want to miss out on these because of lost documents or missed visa. Process your ESTA now and book the flights to the conference you've been wanting to attend.

Below Petar Petkov and Leigh Crestohl, commercial law experts at Zaiwalla & Co., discusses the newly proposed rules and the benefits that may subsequently be established.

Investment arbitration is one of the rare legal mechanisms that allows private individuals or companies to bring a claim directly against a State for breaches of its obligations toward a foreign investor under international law.

Since this dispute resolution process can be expensive and sometimes even unaffordable for small and medium-sized enterprises (SMEs) or individuals, third-party funding (TPF) can be a lifeline for such claimants and allows them to bring claims against States that would have been impossible to action otherwise.

Increasing, even well-resourced investors have discovered the advantages of TPF as a useful tool to hedge risk or make capital available for other business ventures while the claim is ongoing.

Increasing, even well-resourced investors have discovered the advantages of TPF as a useful tool to hedge risk or make capital available for other business ventures while the claim is ongoing.

However, TPF poses certain challenges to the investment arbitration process. In order to deal with such challenges, namely, to prevent conflicts of interests and enhance transparency, recently amendments have been proposed to the Arbitration Rules of the World Bank’s International Centre for Settlement of Investment Disputes (“ICSID”).

Proposed amendments to the ICSID Arbitration Rules

At a consultation in Washington, DC in November 2019, representatives of the ICSID Member States recognised that TPF is a “widely available mechanism that provides important systemic benefits, for example, by enhancing access to arbitration” for SMEs.

At the same time, some States remain concerned about the existence and potential impact of TPF, in particular, regarding transparency of such funding arrangements and conflicts of interests. The proposed new Rule 14 would oblige parties to disclose the existence and name of TPF provider; however, there would be no general obligation for a party to disclose the nature of the funding arrangement or its specific terms. The arbitrators would also be obliged to declare that they are conflict-fee in respect of the relevant funder.

There would be no general obligation for a party to disclose the nature of the funding arrangement or its specific terms.

ICSID also expanded the definition of TPF to include “a donation or grant, or the provision of funds in return for remuneration dependent on the outcome of the dispute”, and made TPF a factor that tribunals may take into account when deciding whether to make an order for security for costs.

The new proposed Rule 14 no longer expressly States that the disclosure of TPF is relevant “[f]or the purposes of completing the arbitrator declaration […]” as in the previous redaction of the proposed amendments. Instead Rule 14 would now require the ICSID Secretary-General to transmit any notice of TPF to any arbitrator proposed for appointment in order to allow the required declaration of independence to be completed with full knowledge of the stakeholders in the matter.

This a welcome amendment to Rule 14(1) that recognises that disclosure of TPF is relevant not only at this procedural step of the arbitration but has a wider impact on other aspects of the proceedings (e.g. impact on costs and on security for costs, disclosure of information to a funder not subject to confidentiality obligations, control or influence funders over the arbitration process, negative impact on the potential amicable resolution of disputes).

The proposed changes are set out in Working Paper No. 3: Proposals for Amendment of ICSID Rules in August 2019.

UNCITRAL developments

Separately, the UNCITRAL Working Group III on Investor-State dispute settlement also discussed TPF in Vienna in October 2019. Whilst acknowledging the importance of TPF for facilitating access to justice, the Working Group expressed concerns about the lack of transparency and regulation.

At the end of the sessions the UNCITRAL Secretariat was requested, working with ICSID and other institutions, to prepare draft provisions on TPF that could be deployed by states in their treaties or used in arbitration rules. These discussions are set out in the Working Group’s report.

Summary

The proposed amendments to the ICSID Rules are welcome in the context of the sensitivity around the issues of TPF and potential conflicts of interests. To a large extent, they reflect investment arbitration case law on TPF and good practice, therefore, if implemented, these amendments may strike an appropriate balance between the policy objective of providing access to justice while preserving the confidentiality of the funding agreement, while also reducing the risk that conflicts of interests may appear at a later stage in the procedure. It remains to be seen what concrete proposals UNCITRAL will put forward, and whether these will reflect the reflecting growing the consensus of the international community that, at least to a certain extent, TPF must be further regulated.

The multiplication of lawsuits against manufacturers seems to have never stopped this last decade but have we really faced the worst? Below Sylvie Gallage-Alwis and Alice Decramer, experts in commercial law at Signature Litigation discuss further the potential Americanisation of EU litigation moving further into 2020.

When looking at what is going on in the United States, one can only wonder what the next global European product liability case in the headlines will be. Indeed, a majority of claims that start in the United States are now replicated in the European Union (and worldwide). This is notably due to the mechanism of discovery, unknown in most Civil Law countries, which allows European plaintiffs access to documents that they would not have otherwise had access to, had their claims started in Civil Law countries. NGOs and plaintiffs' Counsel can, therefore, use the knowledge obtained in the scope of proceedings in the United States, in proceedings pending in the rest of the world.

NGOs and plaintiffs' Counsel can, therefore, use the knowledge obtained in the scope of proceedings in the United States, in proceedings pending in the rest of the world.

Some disputes pending in the Unites States which have caught our attention recently, include:

  • The long lasting talc litigation, which remains alive with the recent allegation of the presence of asbestos and the opening of new investigations by the US Attorney's Office in 2019. These allegations have already led to multi-million-Dollar verdicts and the recall of 33,000 products on 18 October 2019. This litigation is a landmark on the issue of whether the use of a product creates an exposure to a risk for health , even a potential one.
  • The outstanding increase of claims relating to the opioid crisis, against manufacturers accused of flooding the market with these products. Million-dollar settlements have been signed. This crisis is reminiscent of the one that hit the American tobacco industry in the 1990s. This crisis is also resonating in Europe, especially in France, since the National Agency for the Safety of Medicines and Health Products published a report which shows that between 2006 and 2017, the prescription of strong opioids increased by about 150%.
  • The glyphosate-related litigation has led both to claims and legislation against the substance, which has been classified as a "probable carcinogen" since 2015 by the World Health Organization (WHO). As a result, Austria was the first European country to ban glyphosate in July 2019 and the European Parliament called for the improvement of the evaluation and registration of pesticides on 16 January 2019. French Courts have also taken up the issue. On 11 April 2019, the Lyon Court of Appeal held Monsanto liable for "lack of information on the label and failure to exercise due diligence" (Lyon Court of Appeal, 11 April 2019, no. 19/00064). Beyond individual cases, on 15 January 2019, the Lyon Administrative Court cancelled the marketing authorisation for RoundUp 360 (Lyon Administrative Court; 15 January 2019, no. 1704067). It ruled that glyphosate should "be considered as a substance with presumed carcinogenic potential for humans".
  • 2020 will also be the year of environment and climate change litigation. Hundreds of lawsuits have already been filed around the world, mainly regarding environmental compliance and air quality.
  • There have also been regulatory issues raised by the multiplication of CBD products in the United States which have forced the FDA to raise concerns, by the end of 2019, regarding the sale of these products for all types of use and people in the absence of a clear regulatory framework. These products are now also multiplying on the European market with no clear and uniform regulations.
  • We can also highlight e-cigarettes, which have been in the headlines in the United States since last summer and been subject to bans and regulations all around the world. Lead-paint litigation has also been pending in the United States for more than a decade. The debate surfaced, in France, following the fire of Notre Dame and allegations that the population living in the vicinity were exposed to a risk of contamination to

Looking at the above examples, it is fair to say that mass litigation in terms of both the number of plaintiffs and the number of jurisdictions involved seems to be the future of product liability litigation. European States do not have a similar mechanism to that of US discovery, the trend has been to reinforce the powers of their regulators and the coordination between the regulators of each Member State, making it almost impossible to have an issue remain local. Class action mechanisms have further been implemented in almost all jurisdictions. The Plaintiffs' Bars and NGOs now also have an international reach and sufficient media attention to have each issue become the ground of a claim.

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