Treasury Presses Supreme Court to Consider Secret Evidence in Bank Case and this will impact on “law costs”

In this particular instance the Bank of Mellat, an Iranian Bank, appealed the judgement of a lower court to the Court of Appeals (CA). In response to the same the National Treasury of the U.K. is requesting for the CA to consider secret evidence for the first time on appeal. The case revolves around the legality of the sanction imposed by the Treasury as against the Bank of Mellat.

Without going into the details, secret evidence allows a court to partially close its doors to the public view as well as to prohibit the party litigants to view evidence against them. Time and again the Supreme Court has spoken in favour of open court proceedings and only allow close door hearings and the consideration of secret evidence in the most sensitive of matters. Incidentally doing so involves additional costs. And a cost draftsman will be keen to determine to what extent the same will be

The case is politically charged. The main reason for the sanctions imposed on the Bank of Mellat is that it knowingly allowed its office to provide funds and facilitate in the transfer of funds in relation to prohibited activities by the U.N. One particular damning allegation involves nuclear and ballistic testing/programs.

Secret Evidence in Civil Litigationr
The Supreme Court in a 2011 case, popularly referred to as the AL Rawi case effectively banned itself from receiving secret evidence in matters of civil litigation. However, as is the practice of the Supreme Court, earlier rulings can be debunked, modified, explained, or qualified with an exception if the facts, and issues deems necessary. It bears stressing that prior to this ruling the Bank of Mellat has successfully gotten the go signal to present secret evidence in the lower court. The case is already set for hearing and it is expected that the Supreme Court will first rule on whether or not they have the authority: If so, whether or not that authority can be exercised in this case; whether or not the existing procedures will be followed or modified; whether or not to exclude certain court personnel; and even the allowable ad/or extent of charges that a cost draftsman should factor in when assessing law costs.

It is of vital importance that the legal industry is aware of what is going on in the world to be able to address these problems is a pragmatic and fair way.