Miles Joanna-MarriageDivorceSupreme-2011
Miles Joanna-MarriageDivorceSupreme-2011
Miles Joanna-MarriageDivorceSupreme-2011
Money?
Author(s): Joanna Miles
Source: The Modern Law Review , MAY 2011, Vol. 74, No. 3 (MAY 2011), pp. 430-444
Published by: Wiley on behalf of the Modern Law Review
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The case note considers the impact of the Supreme Court decision in Radmacher v Granatino
regarding pre-nuptial and other classes of nuptial agreement, together with recent proposals of
the Law Commission for reform of the law relating to marital property agreements generally. It
explores in particular the question of what, if any, core obligations of marriage cannot - or should
not - be excludable by agreement.
INTRODUCTION
Radmacher can only be understood in its historical context. The highest court had
not been invited to consider any sort of marital agreement since the House of
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6 [1929] AC 601.
7 Matrimonial Causes Act 1923; the grounds for divorce were widened by A. P. Herbert's Matrimo
nial Causes Act 1937.
8 Effected by the Law Reform (Married Women and Tortfeasors) Act 1939, a point noted by
S. Cretney,'Contract not apt in divorce deal' (1999) 115 LQR 356.
9 Matrimonial Causes Act 1857. The history is related in S. Cretney, Family Law in theTwentieth Cen
tury (Oxford: OUP, 2003) ch 10.
10 See now Matrimonial Causes Act 1973, ss 34(1) and 35(6).
11 Maintenance Agreements Act 1957, consolidated with some amendment into the Matrimonial
Causes Act 1973, ss 34-36, following the decision in Bennett v Bennett [1952] 1 KB 249.
12 Edgar v Edgar [1980] 1WLR1410,1417.
13 ibid
14 The divorce', in fact an order permitting the spouses to live separate and apart, granted by eccle
siastical courts prior to the assumption of jurisdiction by the civil courts in 1857.
15 Duchess of Marlborough v Duke of Marlborough [1901] 1 Ch 165,171. See also Brodie v Brodie [1917] P 271.
16 Westmeath v Westmeath (1830) 6 ER 619; Cocksedge v Cocksedge (1844) 60 ER 351; Cartwright v Cart
wright (1853) 43ER385; HvW(1857) 69ER 1157.
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order to secure the payment due under the agreement, or to permit the other
spouse to leave without seeking a decree of restitution of conjugal rights, prefer
ring to pay the amount then due from the other spouse under the agreement than
to enforce continued cohabitation. Both types of incentive were regarded as injur
ious to the institution of marriage, and so such agreements had to be void as a
matter of public policy. But the framework of legal rights and duties underpin
ning this public policy has been dismantled: the duty to cohabit no longer exists
in English law, save in so far as desertion still provides a basis for divorce; husbands
can no longer resort to the self-help remedy of reasonable confinement;17 and the
decree for restitution of conjugal rights and actions for interference by third par
ties with the spousal relationship were abolished by statute in 1970.18
Despite being formally void, however, both pre-nuptial and post-nuptial
agreements had in recent years not been wholly ignored by matrimonial courts
invited under the Matrimonial Causes Act 1973 (the 1973 Act) to grant financial
relief different from that agreed. That Act grants the court very wide discretion to
determine the relief to be granted having regard to all the circumstances of the
case,19 and the existence and terms of such agreements were therefore brought
into account, however illogical that might seem given that they were contrac
tually void.20 Indeed, they had sometimes been regarded as a factor of magnetic
importance' in the exercise of the discretion to achieve a 'fair'21 outcome, either
justifying a nil award or significantly curtailing the award to be made 22
This was the background against which the Privy Council in 2008 decided
MacLeod v MacLeod,23 (MacLeod) a Manx case concerning post-nuptial agreements
(agreements concluded between spouses during marriage catering for the financial
consequences of any future divorce). The Privy Council held that, given the liberal
isation of marriage law noted above, the public policy objections to post-nuptial
agreements no longer applied. Post-nuptial agreements were therefore now valid, sub
ject only to the Hyman principle (leaving either party free to apply for ancillary relief
different from that agreed) and the power in sections 34?36 of the 1973 Act to vary
maintenance agreements' (which, it was held, applied to relevant post-nuptial agree
ments as well as to agreements made on separation)24 But the Privy Council, its judg
ment delivered by Baroness Hale, had argued that the public policy objections to pre
nuptial agreements remained intact. Albeit that these remarks were clearly obiter, they
had considerable persuasive force, emanating from the most senior English family
lawyer in a case concerning law identical to that applicable in this jurisdiction. But
the Court of Appeal in Radmacher v Granatino25 were less than persuaded. And that
brings us to the appeal to the instant case and the decision of the Supreme Court.
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26 Brussels II bis: Council Regulation (EC) No 2201/2003 concerning jurisdiction and the recogni
tion and enforcement of judgments in matrimonial matters and matters of parental responsibility.
27 See the principles articulated in Miller, McFarlane n 21 above and developed in subsequent Court
of Appeal authorities: S. Harris-Short andj. Miles, Family Law: Text, Cases, and Materials (Oxford:
OUP, 2nd ed, 2011, forthcoming) ch 7. As Lady Hale notes ([2010] UKSC 42 at [186]), the fact that
the wife's wealth derived principally from family gifts would probably have justified some depar
ture from equal sharing in this case, even without the agreement, given the relatively modest
length of the marriage.
28 SeeJ. Scherpe and A. Dutta,'Cross-border enforcement of English ancillary relief orders: Fog in
the channel - Europe cut off?' (2010) 40 Fam Law 385.
29 [2008] EWHC1532 at [137]
30 Mat[89]-[93].
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31 For comment, seej. Miles, 'Radmacher v Granatino'. upping the ante-nuptial agreement' (2009) 21
CFLQ 513.
32 [2009] EWCA Civ 649 at [122]. This was, apparently, not revisited in the Supreme Court: [2010]
UKSC 42 at [185].
33 ibid at [2]-[ll], [51], [70] and [146].
34 Eg ibid at [27], [83] and [127].
35 ^at[81]and[137]-[142].
36 Mat [144].
37 ibid at [42], [81] and [148].
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The majority first rejected the Privy Councils view that the public policy objec
tions to pre-nuptial agreements still applied,38 and concluded that pre- and post
nuptial agreements should in principle be dealt with on the same footing. Both
pre-nuptial agreements and those made very early in a marriage 'purport... to
govern what may happen in an uncertain and unhoped for future,39 and both
types of agreement may be made in stressful circumstances, whether as
the price for marriage or for its continuation.40 The majority did not consider
the legal status of the spouses in the post-nuptial context bargaining over
rights and duties already (if only embryonically)41 acquired to be materially dif
ferent from that of would-be spouses bargaining over the terms of a marriage yet
to be contracted.42 The Law Commission shares this view.43 The next section of
this article explores whether the extinction of the public policy objections means
that such agreements should now be regarded as binding as a matter of contract
law. But as the majority observed, in the context of ancillary relief proceedings,
whether the agreement is binding in that sense is neither here nor there because of
the Hyman principle, which remains intact: both parties remain free at all times to
invoke the jurisdiction of the matrimonial court to grant ancillary relief.44
How, then, should that court react where a party to a pre- (or post-) nuptial
agreement nevertheless applies for ancillary relief? The majority first departed
from another plank of the MacLeod reasoning by rejecting the view that post
nuptial agreements are regulated with separation agreements by sections 34-36
of the 1973 Act: despite the language of section 34(1)45 it considered that Parlia
ment cannot have intended that those provisions should deal with agreements
between spouses about a possible future separation.46 Moreover, insofar as they
focus on change of circumstance, it also regarded section 35 s variation power
and the Edgar guidelines for the exercise of the courts discretion to grant ancillary
relief despite such an agreement to be unsuited to post-nuptial agreements as a
class. In the case of post-nuptial agreements made relatively early in marriage by
couples who had no significant wealth at that point, circumstances will invariably
have changed by the time of divorce, and so 'wider considerations' come into play
in deciding what weight to give the agreement.47
So, while separation agreements clearly remain subject to sections 34-36 of the
1973 Act and the Edgar case law, pre-nuptial (and in all probability post-nuptial)48
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agreements fall to be handled on the new basis set out by the Supreme Court in
Radmacher. The majority posed three questions: (1) did any circumstances sur
rounding the making of the agreement detract from the weight that it should
attract? (2) conversely, did any circumstances - notably the agreements status in
German law - enhance its weight? and (3) did the circumstances as they existed by
the time of the ancillary relief proceedings make it fair to order provision differ
ent from that agreed?49
On the first issue, the Supreme Courts approach (including that of Lady
Hale)50 was similar to that of the Court of Appeal, not insisting on compliance
with any particular formal requirements but instead inquiring whether each
party in fact had all information material to his or her decision and in fact
intended that the agreement should govern the financial consequences of
divorce.51 The Court considered that any future legislation giving agreements
prima facie binding effect (to the extent of prima facie ousting the jurisdiction
of the matrimonial court to grant relief, displacing Hyman) would require 'black
and white rules' of this sort.52 Indeed, the Law Commission provisionally pro
poses that qualifying nuptial agreements' should comply with distinct formal
requirements in order to attract that force53 For the time being, however,
while sound legal advice is obviously desirable',54 an agreement will not be
deprived of weight for want of it, or disclosure, where the parties know what they
are doing.
As to the intention that the agreement should be determinative, the Court sug
gested that this will more readily be found from agreements concluded after its
decision. Certainly, the advice that would be given today about pre-nuptial agree
ments will be different, and stronger, from that previously dispensed: there is no
need now to give the rather baffling advice that the agreement is formally void,
but may nevertheless attract some weight, depending on the circumstances.
Instead, as we shall see below, the agreement may now be treated as determinative
unless it would be unfair to do so. But it would be interesting to know whether
practitioners in the last five years or so may have felt able to suggest to particular
clients that, in their circumstances, a court might give the agreement significant
weight,55 and even treat it as a factor of 'magnetic importance' to its discretionary
exercise.56 It is at this point - alone - that the Supreme Court gave any weight to
improbable that the Supreme Courts view of post-nuptial agreements would not be followed in
future.
49 [2010] UKSC 42 at [67].
50 Mat [189].
51 Mat [69].
52 ibid.
53 Law Commission, n 4. above para 5.7 and Part 6.
54 [2010] UKSC 42 at [69].
55 See Lady Hales remarks re the language of various precedents in use: ibid at [172].
56 Crossley v Crossley [2007] EWCA Civ 1491; see also the weight attached to pre-nuptial agreements
even in cases involving the birth of children: Kv K (Ancillary Relief: Prenuptial Agreement) [2003] 1
FLR 120; Mv M (Prenuptial Agreement) [2002] 1 FLR 654. Foreign agreements have also been used,
rightly or wrongly (given the potential implications of Owusu vJackson (C-281/02) [2005] QB 801
for the scope of the Brussels II bis regulation on jurisdiction in matrimonial matters (EC Reg
2201/2003); cfJKNvJCN [2010] EWHC 843), as a basis for declaring the English court to be forum
non conveniens, eg Ella v Ella [2007] EWCA Civ 99.
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the foreign aspect of the case. The majority emphasised that English law, as the lex
fori, exclusively' governed the issues to be determined.57 The Supreme Court did
not comment on the Court of Appeal's rather fuller attention to the agreement's
status in German law, a rather stark example of the developing practice of giving a
so-called 'sideways look' at the foreign law in international cases.58 But it did con
sider that English law could properly pay regard to the situation under German
law insofar as it indicated an intention that the agreement should govern on
divorce, particularly since this case concerned an agreement made prior to the
Radmacher decision, and so this foreign aspect gave the agreement more weight
than it might otherwise have merited.59
An apparent agreement and intention to be bound may have been vitiated by
factors that 'negate any effect the agreement might otherwise have'.60 Self
evidently, this covers grounds that would vitiate the agreement as a matter of
contract law. But, as under the Edgar test for separation agreements, the Supreme
Court highlighted a wider range of problems which might deprive an agreement
of weight, including the parties' emotional state at the time of their agreement,
though - like the absence of legal advice and disclosure - that cannot be consid
ered in isolation from what would have happened had [they] not been under
those pressures'.61 The parties' age, maturity and relationship history should also
be considered as part of the context in which they reached their agreement62
And finally, the court should consider whether the marriage would have pro
ceeded without the agreement, though as the Court remarks and Ms Radmacher
would doubtless emphasise, 'this may cut either way'.63
While successful navigation of these issues will not render the agreement
prima facie binding on the court (because of Hyman), it will bring the parties
within reach of the Supreme Court's key proposition, that 'The court should give
effect to a nuptial agreement that is freely entered into by each party with a full
appreciation of its implications unless in the circumstances prevailing it would
not be fair to hold the parties to their agreement'.64 It may be noted, at this point,
that the question so formulated is not so very different from the Edgar test for
separation agreements, set out above 65 It seems fair to conclude that similar sorts
of questions arise, whatever type of marital agreement one is dealing with. The
key question then is what circumstances will make it unfair to give effect to an
agreement. The Court emphasised that this would be entirely fact-dependent
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66 ibid at [76].
67 ibid at [77]-[83], on which the following paragraphs are based.
68 Matrimonial Causes Act 1973, s 25(1); and see Law Commission, n 4. above at para 7.10.
69 White v White [2001] 1 AC 596, 599.
70 See generally Miller, McFarlane n 21 above, Charman v Charman [2007] EWCA Civ 503.
71 Law Commission, n 4. above para 5.49-5.61.
72 [2010] UKSC 42 at [175]-[176].
73 Mat[165]-[167].
74 ibid at [169]. Lord Mance, whilst preferring the majority formulation, considered that little turned
on which way the question was framed: at [129].
75 See the discussion at [172]?[183], in particular.
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Commission. It was said that if one party is left in a 'predicament of real need,
while the other enjoys a sufficiency or more at the end of the marriage, the court
may readily find an agreement making no provision for that party to be unfair.
Similarly, where one spouses devotion to home-making and child-care freed the
other to accumulate wealth, allowing the breadwinner to retain all that he or she
has earned' is likely to be viewed as unfair.76 In those circumstances, provision
based on need and/or compensation77 is likely to be ordered, notwithstanding
any agreement. But it is unlikely that the equal sharing will be applied in such a
case.78 Indeed, where neither party is in a situation of real need'79 on divorce (so
that needs-based provision would not be warranted in any event), it may be fair to
make no provision at all.80 In short, it will be easier henceforth to contract out of
the equal sharing principle than from needs-based (or compensatory) provision,
but even the latter may properly be excluded in certain cases. In the majority's
view (though not that of Lady Hale), this was such a case, and so the Court of
Appeal's orders were upheld.81
Some commentators have argued that the Supreme Court positively precluded
the notion that pre-nuptial agreements are now contractually binding.82 This
view is difficult to sustain. The old public policy objections having withered away,
it is hard to see on what other basis an agreement otherwise compliant with the
preconditions for contractual validity can be denied that status. Indeed, both Lady
Hale and Lord Mance clearly took the majority to be deciding that pre-nuptial
agreements are now legally enforceable as contracts, expressing their relief that
any decision on that point could only be obiter.83 Several passages in the majority
judgment are most naturally read as assuming that such agreements do now enjoy
that status.84
But is the majority right to regard the contractual status of such agreements as a
'red herring'?85 Thanks to the Hyman principle, no matrimonial court can be
'bound' by a pre-nuptial agreement, any more than it can be by a separation agree
ment, and so there the contract issue is irrelevant. Are Lady Hale and Lord Mance
right to worry about such agreements being treated as binding contracts in other
76 at [81].
77 See Miller, McFarlane n 21 above.
78 ibid.
79 [2010] UKSC 42 at [118]: it seems that this is a narrower concept than the normal standard of 'need'
applied by the family courts, which is conditioned by reference to the standard of living enjoyed
during marriage, certainly following a long relationship.
80 ^at[81]-[82]and[178].
81 ibid at [114]-[123]; cf Lady Hale at [184] to the end.
82 Eg Nicholas Francis QC, Prenuptial Agreements Briefing: the position after Radmacher (Bristol: Jordan
Publishing, 2010) at para 5.6.
83 [2010] UKSC 42 at [128] and [138(1)].
84 Eg ibid at [52], [56] and [62].
85 Mat [63].
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contexts when the court has no power to vary pre-nuptial agreements (akin to
that exercisable under section 35 of the 1973 Act) in order to mollify their terms?86
Some cases in which a binding contract might be relevant are those with a for
eign element. Lord Mance feared contractually binding pre-nuptial agreements
might be enforced by a foreign court which finds itself with jurisdiction after
the divorce.87 However, such a court (applying its choice of law rules) might iden
tify English law as the applicable law in relation to the grant of maintenance and/
or property division following divorce and accordingly endeavour to apply the
1973 Act regime, Hyman and Radmacher included.88 In other cases, where a foreign
court has granted the divorce, the English courts may still be able to grant finan
cial relief under Part III of the Matrimonial and Family Proceedings Act 1984.89
Fear of the contract alone (possibly wrongly) being enforced to the neglect of the
1973 Act remedies may therefore be no worse a prospect than that of a foreign
court misclassifying England and Wales as having a separate property regime'
and so granting no relief at all.
However, there are domestic situations in which contract will matter. Consider a
situation akin to that in Souhbury v Souhbury?0 in which the parties conclude a con
tract for a will; the promisor then dies without having executed the promised will,
or the will is revoked: can the promisee then sue on the contract against the execu
tors of the estate? Or consider an agreement which includes a promise to transfer
land. If made in writing, that agreement may constitute an estate contract creating
an equitable interest in the property which may be protected by appropriate entry on
the land register.91 Suppose then that one or other party is declared bankrupt. Should
the promisor go bankrupt, the promisee would be anxious to assert the estate con
tract to preserve the property in question. Should the promisee go bankrupt, his or
her trustee in bankruptcy would be equally anxious to assert that claim.92
But there is nothing peculiar here about contract. The enforcement of a pre
nuptial contract is not obviously any more deleterious to the position of a spouse
reluctant (or unable) to invoke the remedial jurisdiction of the matrimonial courts
(even for a mere decree of judicial separation),93 than is an express declaration of
trust limiting or entirely depriving that spouse of any beneficial share in the
matrimonial home - or one (on reflection) over-generously conferring an interest
on a spouse who made no financial contribution to its acquisition. Outside the
matrimonial context, no court can modify the outcomes dictated by the laws of
property and express trust94 and spouses have to make do with the consequences.
Why should the prospect of enforceable contracts be any more concerning?
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Lady Hale closed her judgment with the declaration that 'Marriage still counts for
something in the law of this country and long may it continue to do so'.95 But had
the majority suggested otherwise? True, Mr Granatino was largely confined to an
award comparable to that which an unmarried parent might have expected in a
'big money' case under Schedule 1 to the Children Act 1989. But not entirely: his
former wife had also paid off ?700,000 of his debts. The outcome in Radmacher is
not so very different from that approved by Lady Hale herself in MacLeod, though
the non-working wife had received substantial capital sums already. Lady Hale
was concerned that Radmacher now allows spouses to disapply the irreducible
minimum of marriage: the duty of mutual support and spouses' entitlement to
equal esteem in their different roles.96 But this prompts the question: what features
of marriage should contract not be able to reach? And it is this question with
which Part 7 of the Law Commission's consultation paper is concerned.
It may be thought slightly peculiar that an assessment of English law's valua
tion of marriage should focus principally on obligations that arise on its dissolu
tion. There are many distinctive public law consequences of marriage (some
advantageous, others less so) which spouses cannot modify by contract: their sta
tus as liable relatives in social security law and as connected persons in various tax
and insolvency contexts; their entitlement to certain tax allowances, special pro
tection on insolvency and in the immigration and nationality context; their
(dubious) immunity from prosecution for conspiracy and other special protec
tions in the criminal justice sphere. Nor can several unique or privileged private
law consequences of marriage be qualified by contract: statutory home rights;
eligibility to apply for remedies in cases of domestic violence and for family pro
vision on the death of one spouse - in both contexts, remedies that are more gen
erous to spouse-applicants than to cohabitants; and, still guaranteed by Hyman,97
access to the matrimonial courts and (potentially) their financial remedies, not
withstanding any agreement - remedies not offered to cohabitants at all98 On this
evidence, it seems premature to administer the last rites for marriage.
Does Radmacher deliver a devastating blow? We may start by noting that Eng
lish law does not create any community of property or joint ownership of assets
during marriage, and the (very loose) deferred community that may arise on
divorce through the equal sharing principle is only a recent judicial innovation.
That English law came late to the principle of equality on divorce does not dimin
ish its importance. But no European jurisdiction that has any form of sharing on
divorce (or, in many jurisdictions, during marriage and on death) denies spouses
the right to disapply that regime by agreement. As the Law Commission points
out, the very diversity of regimes across Europe suggests that no one scheme of
property sharing is self-evidently more fair than any other: so why not allow
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spouses to select the level and extent of sharing, if any, that suits them best?"
There may often be good reason for one or both parties to wish to marry without
in consequence merging their economic futures completely Without reliable pre
nuptial agreements, avoiding marriage entirely is the only way of reliably avoid
ing the equal sharing principle. It is interesting to note that Lady Hale is more
sanguine about the disapplication of equal sharing than she is about the removal
of liability to meet need,100 perhaps because the assets in Radmacher were all
derived from Ms Radmacher s family rather than accumulated by joint and equal
(if qualitatively different) endeavour during a paradigm traditional marriage. Of
course, excluding equal sharing, while normatively significant, has little practical
impact in the vast majority of cases, where relief is based on need.
So the character of marriage all boils down to the obligation to provide for
needs. Indeed, while many European and other jurisdictions afford considerable
freedom to parties to determine the extent to which they will share property,
ability to contract out of need-based provision on divorce is considerably more
circumscribed, if available at all.101 Although the English matrimonial courts have
long been concerned that an ex-spouse should not be able to cast the other on to
the state,102 former spouses are not liable relatives in social security law and, as
Lady Hale observes, the private law obligation to maintain is no longer life
long.103 So there are limits to the obligation, but what are they? What is the nature
and scope of the former spouses obligation to meet the others need, bearing in
mind that the mere existence of a need in one party and the other party having the
wherewithal to meet it does not ipso facto mean that payment should be
ordered?104 While German law has a very clear framework for regulating
needs-based liability and agreements that purport to limit it,105 this issue remains
under-theorised and incoherent in English law.106 Some of the Law Commissions
consultation questions call for careful attention to be given to this issue, at least in
the context of cases involving a qualifying nuptial agreement. Should a bare
minimum, non-excludable needs-based obligation arise at the point at which a
spouse is rendered dependent on state benefits, a little way above it (which is per
haps what the Courts in Radmacher mean by real need', addressed below), or rather
more comfortably above that point (reasonable requirements' or need generously
assessed', plus compensation, also addressed below)?107
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In RvT [2010] EWCA Crim 2439, [2011] 1 Cr App Rep 85, the Court of Appeal indicated that
'mathematical formulae', such as likelihood ratios, should not be used by forensic scientists to
analyse data where firm statistical evidence did not exist. Unfortunately, when considering the
forensic scientists evidence, the judgment consistently commits a basic logical error, the 'transpo
sition of the conditional' which indicates that the Bayesian argument has not been understood
and extends the confusion surrounding it. The judgment also fails to distinguish between the
validity of the relationships in a formula and the precision of the data. We explain why the Baye
sian method is the correct logical method for analysing forensic scientific evidence, how it works
and why 'mathematical formulae' can be useful even where firm statistical data is lacking.
"The probability that an animal with four legs is a cow is not the probability that a
cow has four legs."
At the scene of a crime, a footwear mark is found. A suspects shoes are examined.
They are of the same brand as the footwear that left the mark and one shoe has
116 Lady Hale principally refers to need' in this section of her judgment, but does also talk about
compensating' the hypothetical parent, ibid at [193].
117 ibid at [121].
118 For the full range of options on offer, see Law Commission, n 4. above para 8.19.
*Barrister, Wellington.
**Victoria University of Wellington.
***Netherlands Forensic Institute.
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