Lloyd v McMahon

The requirements of fairness depend on the character of the decision making body, the kind of decision and the statutory framework.

Citation
[1987] AC 625
Court
House of Lords
Year
1987
Subject
Public Law
Topic
Judicial review: procedural impropriety and legitimate expectations

Facts

Liverpool City Council's Labour councillors, led by Derek Hatton, delayed setting a rate in 1985 as part of a campaign against central government restrictions on local authority spending. The district auditor, under the Local Government Finance Act 1982, wrote to the councillors inviting written representations, and then certified that the council had suffered a loss of over £100,000 because of their wilful misconduct, making them personally liable for it. The councillors argued that the procedure was unfair because they had not been offered an oral hearing.

Legal principle

The House of Lords held that the procedure was fair. Lord Bridge said that the so called rules of natural justice are not engraved on tablets of stone, and that what the requirements of fairness demand when any body has to make a decision affecting the rights of individuals depends on the character of the decision making body, the kind of decision it has to make and the statutory or other framework in which it operates. The councillors had been given full notice of the case against them and the opportunity to make written representations, which they had done. They had not asked for an oral hearing, and fairness did not require one in the circumstances.

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This summary is for study and revision and is not legal advice. Although our case summaries are checked for accuracy, we do not guarantee that they are free from errors or omissions. Always read the full judgment for the court's reasoning.

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