COVERIS FLEXIBLES UK LIMITED v SIMON BREARS & Ors

Contempt of court is sentenced by reference to the seriousness of the conduct, culpability, harm, cooperation, admissions, mitigation and totality. Deliberate obstruction of a search order, destruction or concealment of evidence, breach of an injunction for financial gain, and knowingly false statements to the court are each serious contempts. Imprisonment may be appropriate where the custody threshold is clearly crossed, even for a first offender, and may be immediate where punishment cannot adequately be achieved by suspension. Credit for admissions depends on their timing and completeness. The effects of continuing adverse prison conditions may be considered, but there is no automatic Covid-19 discount. Costs in civil committal proceedings ordinarily remain governed by the Civil Procedure Rules, including indemnity costs where the contempts materially increased the work required.

The claimant applied to commit the first defendant for 13 contempts of court arising from breaches of a search order, concealment or destruction of evidence, breaches of a prohibitory injunction, and false statements in affidavits, pleadings, correspondence and oral submissions. The underlying dispute concerned alleged breaches of duty and diversion of the claimant’s business while the defendant was employed by it.

The defendant admitted the contempts, principally shortly before the listed hearing, and relied on his previous good character, mental health, family and housing circumstances, prospects of rehabilitation, prison conditions and inability to pay costs. The issues were the appropriate custodial sentence, whether it should be suspended, the credit for admissions, totality and costs.

1. The court sentenced the defendant to an aggregate immediate custodial term of 14 months. The contempts were grouped as follows: one month for obstructing or delaying execution of the search order; four months for destroying or concealing evidence; six months for multiple breaches of the prohibitory injunction; and three months for false statements in documents and to the court. The sentences within each group were concurrent, but the groups were treated consecutively before applying totality.

2. The sentencing assessment was fact-specific. Relevant considerations included prejudice, whether the contempt was remediable, pressure, deliberateness, culpability, appreciation of seriousness, cooperation, admissions and guilty plea, apology, previous character and personal mitigation. The defendant’s culpability was high. He acted deliberately, for personal gain, and in knowing breach of court orders and duties of candour.

3. Obstructing a search order is serious because such orders are granted only in special circumstances and the successful applicant is entitled to strict compliance. Deliberate destruction or concealment of evidence after service is an extremely serious breach. Deliberate and reckless false statements verified by a statement of truth will ordinarily require committal to prison.

4. The custody threshold was clearly crossed. Imprisonment remained a punishment of last resort, but the sustained and intentional course of contempt, the significant commercial and procedural harm, and the need for appropriate punishment meant that immediate custody was unavoidable. The defendant’s mental health, family responsibilities, housing position, employment prospects, previous character and the continuing effects of the pandemic did not justify suspension.

5. The defendant received credit for his admissions, but no more than about 20% was appropriate because full admissions were made only shortly before the original trial listing and followed prolonged non-cooperation. The court also considered totality and reduced the aggregate term from the grouped total of 23 months to 14 months.

6. The defendant was to serve half the sentence before release. He was entitled to appeal without permission. He was ordered to pay the claimant’s costs on the indemnity basis, subject to detailed assessment if not agreed, with £70,000 payable on account, subject to submissions on any stay.