Non disclosure of material fact - material fact one which would affect applicant's eligibility to legal aid or his level of contribution - culpability and benefit from non-disclosure relevant to sanctionR v Legal Aid Board, Ex p.

McCormick: QBD (Elias J):26 May 2000The applicant's legal aid certificates were revoked by the area director after an investigation into his finances, during which he voluntarily disclosed that he had taken out a loan after he had applied for legal aid.

The applicant's appeal was rejected by the local legal aid appeal committee, which concluded that the loan constituted a 'material fact' concerning his financial resources within the meaning of reg.78(1)(a) of the Civil Legal Aid (General) Regulations 1989 (SI 1989 No 339) (as amended by the Civil Legal Aid Amendment Regulations 1997 (SI 1997 No 416)).

The applicant sought judicial review.Michael Beloff QC and Matthew Collings (instructed by Field Fisher Waterhouse) for the applicant.

Beverley Lang and Tom Weisselberg (instructed by Toni Smerdon, Legal Aid Board, Holborn) for the appeal committee.Held, granting the application, that the duty to inform the board of a change in circumstances would arise whenever an applicant had reason to believe that it might affect either the continuation of his certificate or the terms on which it would be continued; that a fact would be material within the meaning of reg.78 whenever the applicant had reason to believe that it might affect either his eligibility or his level of contribution; that the test was objective; that, when considering whether revocation or discharge was the appropriate sanction, it was highly relevant for the committee to consider the degree of culpability of the applicant and whether he had personally benefitted from the non-disclosure; that before revoking a certificate it should identify the factors which justified that step being taken; and that, since it was doubtful that the committee had taken into consideration all potentially relevant factors, the application would be allowed and the matter remitted for reconsideration.