I thank all noble Lords who have tabled amendments in this group. I will start with some general comments and observations on Clause 7 and thereby deal also with Amendment 99A, tabled by the noble Lord, Lord Whitty, which would remove Clause 7 altogether.
In short, Clause 7 gives higher UK courts greater flexibility to depart from retained EU case law than is currently the case. I emphasise first that we are talking about appeal decisions. First-instance courts continue to be bound and that is an important part of any answer to the points raised about legal certainty. Currently, the Supreme Court or the High Court of Justiciary in Scotland, and other higher courts, must apply the same tests that they would apply if departing from their own previous case law.
Clause 7 lowers the bar somewhat. It provides that, in deciding whether to depart, the court must have regard to, among other things, the principle that decisions of a foreign court are not, generally speaking, binding in UK courts; any change of circumstances relevant; and the extent to which retained EU case law restricts the proper development of domestic law. I will come to the point made by the noble and learned Baroness, Lady Butler-Sloss, and to the questions of change of circumstances and the word “proper”, in a moment.
That is a lower bar than is currently the case. It does not necessarily imply a cliff edge or any floodgates; it is looking ahead. We do not know what circumstances will arise as the next 20 or 30 years pass, how things will change and whether existing retained EU case law should be followed. The clause essentially says that it is for the higher UK courts to determine how that case law should develop and that it is not the case that previous EU case law can be changed only if the ECJ says yes. Without such a mechanism it is difficult to credibly say that one has withdrawn from the EU, so, in the Government’s view, some such mechanism is needed.
That is the first and general point. The second is that much, but not all, retained EU law is highly influenced by a context that is no longer relevant to the UK: for example, the need to promote among the 27—previously 28—member states the free movement of persons, goods, services and capital, and to protect the single market. All of that is reflected in the case law. There is also the common agricultural policy; the quite different institutional structures of the EU, notably the role of the Commission; the, if I may say so, laconic nature of much EU legislation; and the inevitable challenge of finding a common denominator among so many different legal traditions, languages and national backgrounds while, internally, working entirely in French.
One can pay the highest tribute to the way that the CJEU has navigated these difficulties over the years, and I readily do. But it does not follow that case law developed in those circumstances is necessarily suitable for the UK in the future, particularly in a fast-changing world with such things as the digital economy, artificial intelligence, climate change, genetic science, data protection and so forth. These present novel challenges all the time. In the Government’s view, the UK’s higher courts should be fully equipped to deal with them without being constrained by EU jurisprudence if they feel that they should depart therefrom.
Thirdly, if your Lordships will forgive me saying so, we have in this country a pearl beyond price: the common law. It has nurtured and protected us for centuries and has successfully taken root all over the world. By some measures, it is the world’s most widely used legal system. I was asked whether I would refer to the Warner Music case, which is referred to in the Explanatory Notes. The only reference I will make to that case is that made by the Master of the Rolls, the right honourable Sir Geoffrey Vos, who observed that the CJEU is “very far” from being a common law court. In other words, it is a quite different animal from the courts that we traditionally have in this country. We could spend much time philosophising but, in my humble experience, the continental legal tradition places emphasis on identifying abstract legal principles from which a solution may be deduced, while the common law starts from the other end, as it were, with the facts of a particular case and how those facts relate to other decided cases and the legislation in question. The art of distinguishing cases and building a legal system via a mosaic of interrelated cases has been perfected over the centuries by the judges of this country and other common law jurisdictions.
A very experienced solicitor working in a deprived part of north London said to me, when he heard that I had some previous association with the EU, “Don’t let them weaken the common law.” The common law is a people’s law. It comes up from the bottom; it does not come down from the top. In the Government’s view, it is very important that we never underestimate, underplay or weaken the great common law tradition that we have in this country.
That forms an essential part of the background to this clause, which is essentially to enable our judges to use the best of the common law traditions to take us forward. The Government are not saying that any one approach is better than another, only that the common law is in our DNA. Clause 7 will reinforce the common law tradition and allow it to flourish.
That being the essential rationale, I turn to the various amendments suggested to modify the new tests as set out in the Bill. I will first comment on the theme of legal certainty. The common law, as it has developed, has always been fully aware of the need to preserve legal certainty, but that has not inhibited the proper development of the law as the needs arise—I will come to that in a moment. It is always a question of balance. If one bakes in or gives priority to legal certainty one would never change anything. Legal certainty will of course remain an important circumstance, as it was in the Warner Music case—no doubt judges will have regard to it; it will be up to them—but we cannot say that legal certainty means that we have to slavishly follow old EU jurisprudence until the cows come home just because of legal certainty. We have to find a balance. That is one factor among others, but not necessarily a dominant factor.
I turn to the specific amendments. Amendment 81 was moved by my noble friend Lady McIntosh. I am not completely sure that we have in this group all the amendments to which she originally referred in her speech, but we will sort that out through the usual channels, if we may. Amendment 81 would reduce the “must” have regard to “may” have regard. In the
Government’s view, this would again tend to bake in the existing situation and enable the courts to ignore changes of circumstances, and to not allow or to continue in a state of undue deference to the Court of Justice in Luxembourg.
I say “undue”, by which I mean that some deference is clearly highly necessary. In particular, as the noble and learned Lord, Lord Etherton, said, parts of our law where the statute is essentially an EU creation may well be different situations from other parts of the law. I agree, although I am bound to say, on the legal certainty and accessibility of case law to the general public points, that I very much doubt whether any member of the public, having fought through the 25 often conflicting decisions of the Court of Justice of the European Union on the question of communication to the public, which is the subject matter of the Warner Music case, would be much the wiser when it came to working out what the law was. However, that is another matter.
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The Government do not support reducing “must” to “may” because that would tend to bake in the influence of the European courts on the judgments of our domestic courts as the years pass. I should point out in passing that even in the common-law family, whether in Australia, the US, Canada or this country, great divergences have emerged over the years. They should be allowed to emerge. We should not be in a mindset where legal certainty stops development.
That takes me to Amendment 82, which suggests omitting the words
“the fact that decisions of a foreign court are not (unless otherwise provided) binding”.
I say at once to the noble and learned Baroness, Lady Butler-Sloss, that the Government had no intention of any form of impertinence to the Court of Appeal or other experienced judges who will know that the judgments of foreign courts are not binding. What this does is emphasise exactly what she was saying: you look at cases in Australia, Canada, US and the EU, and you come to a view. All we are saying in the Bill is that this is the process we expect to happen, not any knee-jerk reaction to the extent that we must follow Luxembourg. We are not preserving in aspic all the existing case law of the EU. Therefore, we feel in relation to Amendment 82 that the judgments of the European Court of Justice, although very possibly highly persuasive and possibly even in some cases decisive, should be in principle treated as the judgments of other relevant jurisdictions.
That takes me to Amendment 84, which is essentially to omit “proper” from,
“the proper development of domestic law.”
This is, if I may say so, a term of art. It has been used in case law ever since the House of Lords decided in 1966 to diverge from its previous decisions. It was referred to by Lord Reid. That is not the present noble and learned Lord, Lord Reed, but James Reid, the brilliant Scottish judge; possibly interestingly for Scotland, the best common lawyer we had in the previous century was Scottish. “The proper development of the law” means what the courts feel is the right way to take the law at that particular moment. If you say “restricts
any development of domestic law”, you are back where you started because any existing case law in a sense restricts development, so it is necessary to have the word “proper” in the statute.