JUDGMENT
R v O’Brien (Appellant)
before
Lord Mance
Lord Wilson
Lord Carnwath
Lord Hughes
Lord Toulson
JUDGMENT GIVEN ON
2 April 2014
Heard on 5 December 2013
Appellant Respondent
Alun Jones QC Edward Jenkins QC
Colin Wells Ben Douglas
-Jones
(Instructed by Morgan
Rose
)
(Instructed by Serious
Fraud Office
)
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LORD TOULSON (with whom Lord Mance, Lord Wilson, Lord Carnwath and
Lord Hughes agree)
INTRODUCTION
1. Is a person who has been extradited to this country for trial on a criminal
charge, and who prior to his extradition was guilty of contempt of court by
disobeying a court order, open to punishment for his contempt although it was not
the basis of his extradition? The answer depends in part on the proper interpretation
of the so – called “specialty” or “speciality” provisions of the Extradition Act 2003
and partly on the law relating to contempt. The speciality principle (widely
recognised in extradition law and extradition treaties) prohibits a person who has
been extradited for a particular offence or offences from being dealt with by the
requesting state for another offence or offences committed (or alleged to have been
committed) before his extradition, subject to such exceptions as may be contained
in the relevant statute or treaty.
2. Mr O’Brien appeals against a decision of the Criminal Division of the Court
of Appeal (Gross LJ, Openshaw J and Judge Milford QC) [2012] 1 WLR 3170,
upholding an order of the Common Serjeant (Judge Barker QC) committing him to
prison for 15 months for contempt of court in disobeying a restraint order made
against him under section 41 of the Proceeds of Crime Act 2002 (“POCA”). The
appellant does not dispute that he was guilty of contempt, but he submits that his
committal was unlawful by reason of the specialty provisions of Part 3 of the
Extradition Act 2003. After committing the contempt the appellant fled to the USA,
from where he was extradited to the UK for other reasons. It is submitted that it was
not thereafter open to the English court to punish him for his earlier contempt, for
which he had not been extradited.
3. The Court of Appeal certified the following points of law of general public
importance:
i. Whether a contempt of court constituted by breach of a restraint order
made under section 41 of the Proceeds of Crime Act 2002 constitutes
a civil or criminal contempt.
ii. If the answer to i) is a civil contempt, whether Section 151A of the
Extradition Act 2003 and/or article 18 of the United Kingdom-United
States Extradition Treaty 2003 preclude/s a court from dealing with a
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person for such a contempt when that person has been extradited to
the United Kingdom in respect of criminal offences but not the
contempt in question.
Facts
4. In 2009 the Appellant came under investigation on suspicion of involvement
in a large scale scheme to defraud investors, commonly known as a “boiler room”
fraud. On 24 September 2009 the Common Serjeant made a restraint order against
him under section 41 of POCA. It required the appellant, among other things, to
make disclosure of his assets, not to remove assets from England and Wales, and to
repatriate within 21 days any moveable asset in which he had an interest outside
England and Wales. The order was prefaced in the usual way with a penal notice,
that is, a warning that if he disobeyed the order he may be held to be in contempt of
court and imprisoned, fined or have his assets seized. In this respect the order
followed the standard form of freezing order in civil proceedings (originally known
as a Mareva order), on which the statutory criminal restraint order provisions were
modelled.
5. The appellant failed to comply with the restraint order and he fled the
jurisdiction. On 18 December 2009 the Common Serjeant found that he was in
contempt of court, issued a warrant for his arrest and adjourned the imposition of a
penalty.
6. Six months later the Appellant was traced to Chicago. The Serious Fraud
Office (“SFO”) by now wanted his extradition in order to prosecute him on charges
relating to the alleged fraud. They sought the assistance of the US authorities and a
federal arrest warrant was issued against him. On 8 October 2010 he was arrested in
Chicago and appeared before the local US District Court. He consented to his
extradition in accordance with the UK’s request but did not waive entitlement to the
benefit of the specialty principle.
7. The SFO was initially under the impression that as a matter of law the
appellant’s contempt was criminal in nature. However, the United Kingdom-United
States Extradition Treaty 2003 limited extradition to offences punishable by
imprisonment for 12 months or more, and in the USA the maximum sentence for
the appellant’s contempt, if punishable as a misdemeanour, would have been six
months’ imprisonment. In those circumstances the SFO was concerned that there
might be complications if the appellant were returned to the UK under an extradition
order for prosecution for the boiler room fraud but at the same time was subject to a
bench warrant for the earlier contempt. This concern led the SFO to apply to the
Common Serjeant to set aside the bench warrant, and on 30 November 2010 he did
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so. On 2 December 2010 the appellant was returned to the UK. He was arrested,
charged with various offences of fraud and remanded in custody.
8. On further consideration, the SFO came to the view that the appellant’s
contempt was not a criminal offence and so was not affected by the specialty
principle. It therefore applied to the Common Serjeant for the appellant’s committal.
The appellant objected that the court had no jurisdiction to hear the application. In
a judgment delivered on 1 April 2011 the Common Serjeant rejected the appellant’s
objection. After reviewing the authorities he concluded that the contempt was not a
criminal offence, but was a civil contempt, and that the specialty principle therefore
did not afford the appellant any protection.
9. The Court of Appeal upheld the Common Serjeant’s decision. For the
avoidance of doubt, the question whether the appellant’s contempt constituted a civil
or criminal contempt made no difference to the jurisdiction of the Criminal Division
to hear his appeal, by virtue of section 13 of the Administration of Justice Act 1960
and section 53 of the Senior Courts Act 1981. Section 13 of the 1960 Act provides
that an appeal shall lie from any order or decision of a court in the exercise of
jurisdiction to punish for contempt of court (including criminal contempt), and that
such an appeal from the Crown Court shall lie to the Court of Appeal. Section 53 of
the 1981 Act provides that the Criminal Division of the Court of Appeal shall
exercise the jurisdiction of the Court of Appeal under the former section in relation
to appeals from orders and decisions of the Crown Court.
Grounds of appeal
10. Mr Alun Jones QC advanced two arguments on behalf of the appellant. His
primary submission was that on the appellant’s extradition to the UK the Crown
Court had no power to deal with him for his earlier contempt, no matter whether it
constituted a civil or a criminal contempt. If he failed on that point, his second
submission was that the appellant’s contempt should be classified as criminal. The
first point depends on the proper construction of the Extradition Act. The second
depends on the law of contempt.
Extradition Act 2003
11. Part 1 of the Extradition Act deals with extradition from the UK to category
1 territories. Part 2 deals with extradition from the UK to category 2 territories. Part
3 deals with extradition to the UK from category 1 and 2 territories. The USA is a
category 2 territory.
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12. The appellant’s argument is clear and simple. Part 3 should be regarded as a
self-contained code governing extradition to the UK. It comprises sections 142 –
155A (section 155A, as inserted by section 42 of, and paragraph 24 of Schedule 13
to, the Police and Justice Act 2006) but the important provisions for the purposes of
the appellant’s argument are sections 148 and 151A (as inserted by section 76(3) of
the Policing and Crime Act 2009).
13. Section 148(1) provides:
“Conduct constitutes an extradition offence in relation to the United
Kingdom if these conditions are satisfied –
(a) the conduct occurs in the United Kingdom;
(b) the conduct is punishable under the law of the relevant part of the
United Kingdom with imprisonment or another form of detention
for a term of 12 months or a greater punishment.”
14. The appellant’s contempt occurred in the United Kingdom and was
punishable under section 14(1) of the Contempt of Court Act 1981 with
imprisonment for longer than 12 months. He submits that it was therefore an
extradition offence within the definition of section 148.
15. Section 151A provides:
(1) This section applies if a person is extradited to the United
Kingdom from a territory which is not –
(a) a category 1 territory, or
(b) a territory falling within section 150(1)(b) [which does not
include the USA].
(2) The person may be dealt with in the United Kingdom for an
offence committed before the person’s extradition only if –
(a) the offence is one falling within subsection (3), or
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(b) the condition in subsection (4) is satisfied.
(3) The offences are –
(a) the offence in respect of which the person is extradited;
(b) an offence disclosed by the information provided to the
territory in respect of that offence;
(c) an offence in respect of which consent to the person
being dealt with is given on behalf of the territory.
(4) The condition is that –
(a) the person has returned to the territory from which the
person was extradited,
(b) the person has been given an opportunity to leave the
United Kingdom.
(5) A person is dealt with in the United Kingdom for an offence if –
(a) the person is tried there for it;
(b) the person is detained with a view to trial there for it.
16. For reasons which I will explain, section 148 has no direct application to the
extradition of a person to the United Kingdom from the United States. However,
two matters are not in dispute. First, it is common ground that if the appellant’s
contempt amounted to an offence within the meaning of section 151A, it was not
open to a court in the United Kingdom to deal with him for that contempt. Secondly,
although an “offence” (in section 151A) is wider than an “extradition offence” (in
section 148) in that it is not limited to an extraditable offence, it is not suggested that
the meaning of the word “offence” itself varies in different sections of the Act. If it
means a criminal offence in one section it must mean a criminal offence in the other.
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17. For completeness it is right to record that the United Kingdom – United States
Extradition Treaty 2003 (Cm 7146) contains the following specialty clause in article
18(1):
“A person extradited under this Treaty may not be detained, tried, or
punished in the Requesting State except for: …
(a) any offense for which extradition was granted, or a different
denominated offense based on the same facts as the offense on
which the extradition was granted, provided such offense is
extraditable, or is a lesser included offense…”
Article 2.1 provides:
“An offense shall be an extraditable offense if the conduct on which
the offense is based is punishable under the laws in both States by
deprivation of liberty for a period of one year or more or by a more
severe penalty.”
Those provisions of the Treaty run in tandem with the Act but do not give rise to a
separate argument.
18. The argument clearly and forcefully presented by Mr Jones depends for its
persuasiveness on reading section 148 in isolation. However, for a proper
understanding of its purpose and construction it is necessary to see how the section
fits into the structure of the Act.
19. Parts 1, 2 and 3 of the Act each contains a definition of extradition offence,
which have in common that they refer to “conduct punishable with imprisonment or
another form of detention for a term of 12 months or a greater punishment”. In Part
1 the relevant sections are 64 and 65; in Part 2 the relevant sections are sections 137
and 138. The full definitions vary according to whether the extradition is outwards
or inwards, the territories concerned, and whether the person subject to the
proceedings has already been sentenced, but there is a common structure.
20. The Extradition Act 2003 replaced the Extradition Act 1989. The need for
new legislation arose from the Council Framework Decision of 13 June 2002 on the
European arrest warrant and surrender procedures between member states
(2002/584/JHA). Those states are designated as category 1 territories under the
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2003 Act, and Part 1 of the Act implements the Framework Decision in relation to
arrest warrants issued by them.
21. The rationale of the Framework Decision is summarised in para (5) of the
preamble:
“The objective set for the Union to become an area of freedom,
security and justice leads to abolishing extradition between Member
States and replacing it by a system of surrender between judicial
authorities. Further, the introduction of a new simplified system of
surrender of sentenced or suspected persons for the purposes of
execution or prosecution of criminal sentences makes it possible to
remove the complexity and potential for delay inherent in the present
extradition procedures. Traditional co-operation relations which have
prevailed up till now between Member States should be replaced by a
system of free movement of judicial decisions in criminal matters,
covering both pre- sentence and final decisions within an area of
freedom, security and justice. [Emphasis added.]”
22. Article 1.1 provides:
“The European Arrest Warrant is a judicial decision issued by a
Member State with a view to the arrest and surrender by another
Member State of a requested person, for the purposes of conducting a
criminal prosecution or executing a custodial sentence or detention
order. [Emphasis added.]”
23. It follows that under the Framework Decision it is a prerequisite of a valid
arrest warrant that the conduct of which the person is accused or has been convicted
constitutes a criminal offence under the law of the requesting state.
24. The process by which Part 1 of the 2003 Act gives effect to the Framework
Decision is linear, by which I mean that it sets out a series of stages and what is
required at each stage. Section 2 sets out the formal requirements of a European
Arrest Warrant; it must specify the offence of which the person is accused or has
been convicted. Section 3 authorises the arrest of the person who is the subject of a
European Arrest Warrant. The arrested person must be brought before a judge within
48 hours (section 6). If the judge is satisfied that the person brought before him is
the subject of the arrest warrant, he must fix a date for the extradition hearing and
deal with various procedural matters (section 8). At the initial stage of the extradition
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hearing, section 10(2) requires the judge to decide “whether the offence specified in
the Part 1 warrant is an extradition offence”.
25. In order to decide that question the judge must apply either section 64 or
section 65. Section 64 applies to a person who has not been sentenced, ie someone
who has been accused but not tried or who has been convicted but not sentenced.
Section 65 applies to a person who is alleged to be unlawfully at large after
conviction and has been sentenced for the offence.
26. The question whether the offence specified in the warrant is an extradition
offence for the purposes of Part 1 depends on (a) the nature of the offence, in
particular whether it is included in the European Framework list of extraditable
offences or, if not, whether it would constitute an offence under the law of the United
Kingdom if committed in the United Kingdom and (b) the length of the term of
imprisonment to which the person either might be sentenced or has been sentenced.
Thus section 64 provides (in relation to a person not sentenced for the specified
offence):
(2) The conduct constitutes an extradition offence in relation to the
category 1 territory if these conditions are satisfied –
(a) the conduct occurs in the category 1 territory and no part
of it occurs in the United Kingdom;
(b) a certificate issued by the appropriate authority of the
category 1 territory shows that the conduct falls within the
European framework list;
(c) the certificate shows the conduct is punishable under the
law of the category 1 territory with imprisonment or another
form of detention for a term of 3 years or a greater
punishment.
(3) The conduct also constitutes an extradition offence in relation to
the category 1 territory if these conditions are satisfied –
(a) the conduct occurs in the category 1 territory;
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(b) the conduct would constitute an offence under the law of
the relevant part of the United Kingdom if it occurred in that
part of the United Kingdom;
(c) the conduct is punishable under the law of the category 1
territory with imprisonment or another form of detention for
a term of 12 months or a greater punishment (however it is
described in that law).
Section 65 contains analogous provisions in relation to sentenced offenders.
27. Extradition to non-EU Member States with which the UK has extradition
arrangements (category 2 territories) is governed by Part 2 of the 2003 Act. The
process begins with a request through diplomatic channels but the judicial process
in the UK follows a similar pattern to that set out in Part 1. At an initial stage the
judge has to decide under section 78(4) whether the offence specified in the request
for extradition is an extradition offence. For that purpose the judge has to apply
section 137 (in relation to a person who is accused of the offence or has been
convicted but not sentenced) or section 138 (in relation to a person who has been
sentenced for the offence). Those sections closely resemble sections 64 and 65 in
Part 1. Thus section 137(2), which is the counterpart to section 64(2), provides:
“The conduct constitutes an extradition offence in relation to the
category 2 territory if these conditions are satisfied –
(a) the conduct occurs in the category 2 territory;
(b) the conduct would constitute an offence under the law of the
relevant part of the United Kingdom punishable with
imprisonment or another form of detention for a term of 12 months
or a greater punishment if it occurred in that part of the United
Kingdom;
(c) the conduct is so punishable under the law of the category 2
territory (however it is described in that law).”
28. The function of the definition of extradition offence in sections 64 and 65 of
Part 1 and sections 137 and 138 of Part 2 is to differentiate between an offence for
which a person may be extradited and one for which he may not. To be an extradition
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offence, it must not only be a criminal offence but it must satisfy the prescribed
criteria.
29. That accords not only with the scope of extradition under the Framework
Decision but also with the essential nature of extradition as historically it has always
been understood in the United Kingdom.
30. The Extradition Act 1870 (33 and 34 Vict, c 52) set out in the language of its
preamble:
“the law relating to the surrender to foreign states of persons accused
or convicted of the commission of certain crimes within the
jurisdiction of such states, and to the trial of criminals surrendered by
foreign states to this country.”
Such persons were referred to in the Act as “fugitive criminals”. The Extradition
Act 1989 defined the term “extradition crime” as:
“Conduct in the territory of a foreign state….which, if it occurred in
the United Kingdom, would constitute an offence punishable with
imprisonment for a term of 12 months, or any greater punishment, and
which, however described in the law of the foreign state…, is so
punishable under that law.”
The word “offence” in that definition clearly referred to a criminal offence because
that was the word being defined. The effect of the definition was to narrow the class
of crimes constituting extradition crimes to those of sufficient seriousness to warrant
extradition.
31. Similarly, section 2(1)(a) of the 1989 Act contained a definition of
“extradition crime” in language which closely resembles section 137(2) of the 2003
Act. There is a difference in the introductory words in that section 2(1) of the 1989
Act began with the words “Extradition crime means”, whereas section 137(2) of the
2003 Act begins with the words “the conduct constitutes an extradition offence…if”,
but I would reject the idea that the change of wording reflects a subtle intention to
widen the concept of an extradition offence so as to include non-criminal conduct.
To change the law in that respect would have been a significant step which one
would expect to have been highlighted at that time.
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32. Part 3, under which the present appeal arises, is the reciprocal of Parts 1 and
2 in that it is concerned with extradition from category 1 and category 2 territories
to the UK. Extradition from a category 1 territory is a judicial process under the
Framework Decision. Sections 142 to 149 implement that process. Under section
142 a judge may issue a part 3 warrant if satisfied among other things that there are
reasonable grounds for believing that the person has committed an extradition
offence or that the person is unlawfully at large having been convicted of an
extradition offence. Section 148 applies in this context.
33. Section 148 has no direct application in relation to the extradition of a person
from a category 2 territory, as in the present case, because the UK judiciary is not
involved in the process of obtaining the extradition of a person from a category 2
territory. The process of extradition from a category 2 territory is triggered not by
a warrant issued by a UK judge but by a request from the Government to the foreign
state. For that reason sections 142-149 have no counterpart in relation to extradition
from category 2 territories.
34. In any event, however, it is in my judgment clear for the reasons set out above
that nothing can constitute an extradition offence (whether for the purposes of Part
1, Part 2 or Part 3) unless it is a criminal offence under the law of the relevant state.
Not every alleged criminal offence will amount to an extradition offence, but it is a
necessary pre-condition of an extradition offence that the conduct or alleged conduct
is proscribed by the criminal law of the relevant state. For those reasons I would
reject Mr Jones’s principal argument.
Civil or criminal contempt
35. A restraint order under section 41 of POCA is an interim remedy. Its aim is
to prevent the disposal of realisable assets during a criminal investigation or criminal
proceedings. Under section 41(7) the court may make such order as it believes is
appropriate for the purpose of insuring that the restraint order is effective. This may
include, for example, an order requiring disclosure of assets by the person against
whom the restraint order is made. A restraint order may also be reinforced by the
appointment of a receiver under section 48 and the court may order any person who
has possession of realisable property to which the restraint order applies to give
possession of it to the receiver.
36. POCA does not provide that it is an offence to disobey or obstruct a restraint
order or a receivership order, but the Crown Court has an inherent power to treat
such behaviour as contempt of court, for which it may impose punishment under
section 45 of the Senior Courts Act 1981. Rule 59.6 of the Criminal Procedure Rules
2013 (SI 2013/1554) provides that an applicant who wants the Crown Court to
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exercise that power must comply with the rules set out in part 62 (Contempt of
Court).
37. There is a distinction long recognised in English law between “civil
contempt”, ie conduct which is not in itself a crime but which is punishable by the
court in order to ensure that its orders are observed, and “criminal contempt”.
Among modern authorities, the distinction was explained in general terms in Home
Office v Harman [1983] 1 AC 280 (in particular by Lord Scarman at p 310) and
Attorney General v Times Newspapers Ltd [1992] 1 AC 191 (in particular by Lord
Oliver at pp 217-218).
38. Breach of an order made (or undertaking obtained) in the course of legal
proceedings may result in punishment of the person against whom the order was
made (or from whom the undertaking was obtained) as a form of contempt. As Lord
Oliver observed in Attorney General v Times Newspapers Ltd, although the intention
with which the person acted will be relevant to the question of penalty, the liability
is strict in the sense that all that is required to be proved is the service of the order
and the subsequent doing by the party bound of that which was prohibited (or failure
to do that which was ordered). However, a contempt of that kind does not constitute
a criminal offence. Although the penalty contains a punitive element, its primary
purpose is to make the order of the court effective. A person who commits this type
of contempt does not acquire a criminal record.
39. A criminal contempt is conduct which goes beyond mere non-compliance
with a court order or undertaking and involves a serious interference with the
administration of justice. Examples include physically interfering with the course
of a trial, threatening witnesses or publishing material likely to prejudice a fair trial.
40. The distinction is not unique to English law. A similar distinction is
recognised in the U.S.A. In Turner v Rogers 564 US 1 (2011) the US Supreme
Court had to decide whether the Due Process Clause of the US Constitution granted
an indigent defendant a right to state-appointed counsel in civil contempt
proceedings which might lead to his imprisonment. Justice Breyer, at page 8, said
that civil contempt differs from criminal contempt in that it seeks only to coerce the
defendant to do what the court had ordered him previously to do.
41. If a victim of the appellant’s fraud had obtained a freezing order against him
similar to the restraint order made under section 41 of POCA, there is no doubt that
the claimant would have been entitled to bring contempt proceedings against the
appellant after his extradition to the United Kingdom. The case would be analogous
to Pooley v Whetham (1880) LR 15 Ch D435. An order was made in litigation
between Mr Pooley and a bank that Mr Pooley was to give up possession of certain
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property to a receiver and manager appointed by the court. Mr Pooley disobeyed
the order and went to Paris, where he was arrested under a warrant issued under the
Extradition Act 1870 for an alleged offence of fraud. After his return Mr Pooley was
acquitted for the fraud for which he had been extradited to stand trial, but the bank
sought to proceed against him for his earlier contempt. It was argued unsuccessfully
on his behalf that the proceedings contravened section 19 of the 1870 Act, which
provided that a person who was arrested under the Act should not be triable or tried
for any offence committed prior to his arrest other than a crime for which the
surrender was granted. The Court of Appeal held that the process instituted by the
bank was not a proceeding for punishing a crime. It was a process for the purpose
of enforcing civil rights.
42. Mr Jones submitted that the position is different with a restraint order under
section 41, because it is not an order obtained in order to protect an applicant’s civil
rights but is an order obtained by the state in the course of a criminal investigation.
The Common Serjeant and the Court of Appeal rejected this argument and I agree
with them. It is necessary to look at the nature and purpose of the order. It is
fallacious to argue that because the order was made by a criminal court, rather than
a civil court, disobedience to the order amounts to a crime, whereas it would not
have been a crime to disobey a similar order imposed by a civil court. The question
whether a contempt is a criminal contempt does not depend on the nature of the
court to which the contempt was displayed; it depends on nature of the conduct. To
burst into a court room and disrupt a civil trial would be a criminal contempt just as
much as if the court had been conducting a criminal trial. Conversely, disobedience
to a procedural order of a court is not in itself a crime, just because the order was
made in the course of criminal proceedings. To hold that a breach of a procedural
order made in a criminal court is itself a crime would be to introduce an unjustified
and anomalous extension of the criminal law. “Civil contempt” is not confined to
contempt of a civil court. It simply denotes a contempt which is not itself a crime.
Conclusion
43. I would dismiss the appeal and would answer the questions certified by the
Court of Appeal as follows:
(i) a contempt of court constituted by a breach of a restraint order made under
section 41 of POCA is not itself a crime.
(ii) section 151A of the Extradition Act 2003 and article 18 of the United
Kingdom-United States Extradition Treaty 2003 do not preclude a court
from dealing with the person for such a contempt when that person has
been extradited to the United Kingdom in respect of criminal offences.
