Civil Fraud Cases And The Privilege Against Self-Incrimination

The Court of Appeal's decision in V v. C [2001] EWCA Civ 1509 (16 October 2001) discusses the "privilege against self-incrimination" in the context of defending civil claims where there are allegations of conduct which may attract criminal sanctions.

In basic terms, the privilege against self-incrimination prohibits witnesses from being compelled to answer questions, if to do so may incriminate them in criminal proceedings. Often in civil fraud cases, or cases brought to recover the proceeds of fraudulent acts, criminal proceedings are commenced by the authorities once the facts are known.

In this case, V was a company which made a claim against Mr. C. V's Particulars of Claim alleged that Mr. C had misappropriated money using certain accounts and companies which he controlled. V claimed 11.3m for moneys had and received by Mr. C, and also for damages to be assessed following Mr. C's alleged breaches of fiduciary duties.

The Particulars of Claim were served and in his defence to those Particulars, Mr. C stated that he could not plead to certain allegations because by doing so he might incriminate himself. (In fact, criminal proceedings were commenced, and Mr. C was charged with fraudulent trading contrary to s458 of...