No crime no bar to civil recovery

The Supreme Court has ruled that, following an acquittal in criminal proceedings, it is not a breach of the defendant’s right to a fair trial for a civil recovery order to be made using the civil rather than criminal standard of proof. The court also ruled that the investigation costs of interim receivers in such cases are, in principle, recoverable as costs of and incidental to the civil recovery proceedings. Accordingly, such costs are, in principle, recoverable from the subject of the civil recovery order. Henry Garfield and Tim Pountain-Hole of Baker & McKenzie step through the decision.

Henry Garfield (+ 44 (0)20 7919 1180, Henry.Garfield@bakermckenzie.com) and Tim Pountain-Hole (Tim.Pountain-Holes@bakermckenzie.com) are associates with Baker & McKenzie in London.

Facts

In 2000, David Gale and his former wife, Theresa, were acquitted in Portugal of drug trafficking, tax evasion and money laundering offences. Drug trafficking charges brought against David Gale in Spain were also dropped.