In respect of the UK Taxi trade the 1998 human rights act first surfaced in the judicial review case of Royden v Wirral council in 2002. It was established in that case that a "Taxi proprietor License" had no monetery value or goodwill other than the fact of a scarcity value brought about by a restriction of licenses. The ruling also established the fact that if a license wasn't subject to illegal interference by the license controler then in conjuction with the previous two observations none of the three principals in the first protocal in Article 1 of the European Convention of Human Rights, were breached.
In future and if time allows I intend to explore the conflict of taxi licensing decisions in relation to our human rights. Apart from Royden the Taxi trade hasn't yet appealed a council decision or condition based on human rights but I think its about time we started scrutinising these conditions more closely and exposing those conditions that are contrary to human rights legislation.
The introduction to the 1998 act is as follows.
HUMAN RIGHTS ACT 1998
1998 CHAPTER 42
Introduction
Royal Assent [9 November 1998]
Human Rights Act 1998, Ch. 42, s. 1 (Eng.)
1 The Convention Rights
(1) In this Act "the Convention rights" means the rights and fundamental freedoms set out in--
(a) Articles 2 to 12 and 14 of the Convention,
(b) Articles 1 to 3 of the First Protocol, and
(c) [Article 1 of the Thirteenth Protocol],
as read with Articles 16 to 18 of the Convention.
(2) Those Articles are to have effect for the purposes of this Act subject to any designated derogation or reservation (as to which see sections 14 and 15).
(3) The Articles are set out in Schedule 1.
(4) The [Secretary of State] may by order make such amendments to this Act as he considers appropriate to reflect the effect, in relation to the United Kingdom, of a protocol.
(5) In subsection (4) "protocol" means a protocol to the Convention--
(a) which the United Kingdom has ratified; or
(b) which the United Kingdom has signed with a view to ratification.
(6) No amendment may be made by an order under subsection (4) so as to come into force before the protocol concerned is in force in relation to the United Kingdom.
_________________________
The recent case summary below helps define the status of a license and for our particular purpose a taxi license just in case the ruling in the Royden case hasn't sunk in.
I have highlighted some pertinant comments in the case law below.
__________________________
March 2007
R (on the application of Zafra Iqbal Malik) v (1) Waltham Forest NHS Primary Care Trust (2) Secretary of State for Health (2007)
[2007] EWCA Civ 265
CA (Civ Div) (Auld LJ, Rix LJ, Moses Lj) 28/3/2007
ABSTRACT
Inclusion on a medical performers' list does not amount to a "possession" for the purposes of Protocol 1 Article 1 of the European Convention of Human Rights 1950. As such, the applicant's suspension from the performers' list was not an interference with the applicant's right to peaceful possession.
SUMMARY
The applicant doctor was registered on the medical performers' list pursuant to regulation 13 of the National Health Service (Performers Lists) Regulations 2004 and provided services to the Primary Care Trust, the first Defendant. He was remunerated by the Trust on the basis of the number of patients on his list. In 2005 he was suspended from the list, preventing him providing services to his NHS patients. During his suspension he received payments amounting to 90% of his normal monthly contract.
The applicant brought judicial review proceedings challenging his suspension. He argued that his inclusion on the performer's list was a possession within Article 1 Protocol 1 ECHR ("Article 1"), and, by unlawfully suspending him from the list, there had been an unjustified interference with his possessions. He contended that his patient list represented goodwill in his practice which, given that his income was based on the number of patients on the list, had a value that would be diminished by his suspension.
At first instance Mr Justice Collins held that the applicant's inclusion on the performance list was akin to the possession of a licence, and therefore amounted to a possession within Article 1. Having found that the applicant had been unlawfully suspended, the court held that his possession had been subject to an interference contrary to Article 1. While accepting that the applicant had been unlawfully suspended, the respondents appealed the decision that inclusion on a performer's list amounted to a possession.
Held:
Appeal upheld. The inclusion on a performer's list was not a possession as such, an unlawful suspension did not amount to a violation of Article 1. The applicant was seeking to claim a future right of income; however, an individual's monetary loss, in the sense of loss of future livelihood, could not constitute a possession attracting the protection of Article 1 unless based on loss of some professional or business goodwill or other present legal entitlement: R(on the application of Countryside Alliance) v Attorney General (2006) EWCA Civ 817 (2006); Marckx v Belgium (1979) 2 EHRR 330. The applicant had no marketable goodwill as he was statutorily denied from marketing any goodwill in a patients list by the Primary Medical Services (Sale of Goodwill and Restrictions of Sub-contracting) Regulations 2004.
There was no form of existing legal entitlement such as legitimate expectation which would attract the protection of Art 1. Inclusion on a performer's list was not akin to a licence such as to render it an asset for the purposes of Article 1. In any event, a licence in itself may be incapable of being a possession: Legal and General Insurance Co Ltd v Kirk [2002] IRLR 124. Where a possessory right is claimed to some intangible entitlements conferred by a licence or some other form of permission, some additional factor, often in monetary form, is necessary to render it a 'possessory' entitlement as distinct from a legal right. It is the economic rights, including marketable goodwill, flowing from the licence which may amount to possessions. In the present case there were no such additional factors such as to render inclusion on the list an Article 1 possession.
COMMENT (April 2007)
This judgment provides further authority for the principle that a future right to income, without goodwill or other present legal entitlement, is insufficient to amount to a possession attracting the protection of Article 1. However, it also gives guidance as to the status of inclusion on performance lists, indicating that such inclusion in itself is insufficient to amount to a possession: there must be some additional interest, usually in monetary form, which renders it a 'possessory' entitlement.
There is strong domestic and Strasbourg authority indicating that, while goodwill may be marketable, a mere future right to income is not.
While goodwill was held to amount to a 'possession' for the purposes of Article 1 in Van Marle and Ors v The Netherlands (1986) 8 EHRR 483, the case of Marckx v Belgium (1979) 2 EHRR 330 is authority for the proposition that this Article does not protect a future right to receive possessions.
The Appeal Court in the present case placed much reliance on the judgment of the Administrative Court in R (Countryside Alliance) v Attorney General [2005] EWHC 1677 (Admin), which followed Van Marle and Markx in recognising that
"There is a clear distinction in Strasbourg jurisprudence for the purposes of Article 1 between the "valuable goodwill of a business" and the "ability of a person to earn future income."
The first is a possession: the second is not.
The first is marketable: the second is not.
There is no intermediate possession being the livelihood of a self-employed person." [para. 169]
Attempts to distinguish Countryside Alliance from this case on the basis that the former was concerned with the livelihood of a self-employed person, not with inclusion on a performers list which was connected to a professional practice, were strongly rejected. In the present case, the court did not have to determine whether goodwill was present, as the applicant was statutorily barred from having any marketable goodwill in his patients list.
However, they also had to consider whether the applicant had a legitimate expectation to future income, in line with the Strasbourg case Wendenburg v Germany (Application No 71630/01; 6 February 2003).
In that case, the applicants were advocates whose exclusive right of audience in certain appellate courts was removed, resulting in a drop in their earnings. The Court held that the removal of the right of audience was an interference of their Article 1 possession as they had had a legitimate expectation of continuing to enjoy a certain level of earnings. However, the interference was considered justified as being in the general interest.
It is clear that the Appeal Court did not agree with such a "middle position" of legitimate expectation of future earnings, holding such a possessory entitlement to be merely "shadowy" in nature [para. 25]. Rather, it preferred the "surer touch" [para. 26] of the Administrative Court and Court of Appeal in Countryside Alliance which rejected such a middle position,
stating that a loss of future income does not qualify unless there is an enforceable claim thereto. As a means of further distancing himself from the middle way of 'legitimate expectation' Lord Justice Auld held that to find a further category of Article 1 possession based on legitimate expectation would "unacceptably blur" the distinction between prospective loss of, and an existing right to, future income [para. 29]. In addition, it would be very difficult to apply in practice.
Nonetheless, the Court did recognise that there are difficulties in distinguishing between marketable goodwill and a (non-marketable) present-day reflection of anticipated future income, in particular as the present-day value of any business will inevitably reflect its future profit-earning capacity. Such difficulties could not, according to Lord Justice Rix, be solved by merely looking at marketability. However, no means of solving this difficulty were offered, as the question did not arise in the present case, goodwill being statutorily denied.
Lord Justice Rix further broke down the element of goodwill, holding that not all forms of goodwill amount to 'possessions'. Where the element of goodwill is based on a person's reputation, this goodwill is personal to the trader, and therefore not marketable. As such, if a person's reputation is damaged, such as to affect the trader's goodwill, the element of goodwill is indistinguishable from a claim to loss of future income.
Mr Justice Collins at first instance had relied on the cases of Crompton v Department of Transport [2003] EWCA Civ 64 and his own ruling in R (Quark Fishing) v Secretary of State for Foreign Commonwealth Affairs [2003] EWHC 1743 (Admin) to conclude that a licence to carry out an economic activity could be regarded as a possession.
On this basis, he concluded that inclusion on a list was akin to a licence as it had an intrinsic value which enabled the doctor to practice. "However, this analogy was rejected as unhelpful", and the cases were regarded as distinguishable: Crompton was held to be of little weight, as the revocation of the road haulage operator's licence would have led to a loss of goodwill in any event, and Quark was distinguished because the fishing licence was transferable with the boat.
"Lord Justice Rix found that licences may be distinguishable from the economic interests underlying it and as such it is the economic interests, not the licence, which amount to possessions: consequently, the analogy therefore broke down."
Rather, he regarded the inclusion on the list as "a matter of regulation, a condition or qualification for performing NHS services, rather than a possession or property right in itself" [para. 73]. Inclusion on the list had in itself no monetary value.
Lord Justice Auld emphasised the need for an intangible asset conferred by a licence to have some additional factor to render it a possessory entitlement.
In most cases, this additional factor would be a present economic value. While recognising that a monetary value cannot always be the "touchstone of a possessory entitlement" under Article 1, the Judge held that, "where the possessory interest claimed is purely a monetary one, how else is it to be identified and valued for the purpose of determining whether there has been an interference with it, and, if so, whether that interference has been justified in the general interest?"
[para. 44]. In support of this proposition, the Appeal Court cited the case of Nicholds & Ors v Security Industry Authority & SSHD [2006] EWHC 1792 (Admin) in which Mr Kenneth Parker QC held that the introduction of licensing criteria for door supervisors which prevented them from continuing to work because of their previous convictions did not deprive them of any rights amounting to Article 1 possessions.
He distinguished between licences which have monetary value and are therefore marketable, and those which, while of value to the holder because he cannot carry on licensable activities without it, are not marketable. He held that these latter licences could not be treated as possessions because they did not represent a distinct asset having monetary value.
Irrespective of the above reasoning, there is also a sense in the judgment that the Court felt that the applicant had pursued the wrong route. The Court held that financial remedies were to be found under his NHS contract, not human rights law. Further, unlike the Strasbourg authority Karni v Sweden (1988) 55 DR 157, where a doctor's vested interests in his practice were affected when it was closed down, the applicant retained a right to practise privately, and the suspension did not prevent the NHS contract from continuing. In addition, while suspended he was remunerated at 90% of his previous earnings, which were derived from his patients' list, and the placement of locums ensured that his patients continued to be treated. There was no evidence to indicate that his earnings had been affected by the suspension as a result of any drop in patient numbers.
In allowing the appeal the Court indicated that the boundaries of the rights under Article 1 are not to be expanded in a manner which blurs the distinction between an existing right to future income and a mere anticipated right to future income. Given the potentially limitless intangible entitlements that could be claimed as possessions under Article 1, the Court sought to restrict claims brought under this Article by requiring that such entitlements be grounded in Article 1 by requiring them to possess a ****quantifiable asset.****
Source 1COR Resources
http://www.1cor.com/