Porter v Magill [2002] 2 AC 357

Facts

• The case concerned Dame Shirley Porter, former leader of Westminster City Council, who was accused of implementing a policy of designated sales of council housing in marginal wards to bolster Conservative party support.
• District Auditor John Magill surcharged Porter and her colleagues for financial losses suffered by the council due to this policy.
• Porter challenged the auditor’s findings, asserting apparent bias, particularly objecting to Magill's pre-emptive press conferences that publicized preliminary findings before the investigation concluded.

Issues

1. Whether the District Auditor’s conduct, particularly publicizing preliminary findings in press conferences before Porter's fair hearing, gave rise to apparent bias.
2. What legal test should be applied to determine apparent bias in administrative decision-making.
3. Whether the actions of Magill met the threshold for a finding of bias requiring the decision to be set aside.

Decision

• The House of Lords articulated a new test for apparent bias: whether a fair-minded and informed observer, considering all facts, would conclude there was a real possibility of bias.
• Applying this test, the House of Lords found that Magill's conduct in holding pre-emptive press conferences did create a real possibility of bias.
• The finding of bias led to overturning the Court of Appeal’s decision, which had used the earlier, less stringent "real danger" test.

Legal Principles

• The test for apparent bias is objective and focuses on the perception of a fair-minded and informed observer, not the subjective views of the parties.
• Actual impartiality and the appearance of impartiality are both essential to preserve public confidence in administrative processes.
• The fair-minded and informed observer is presumed to possess knowledge of the relevant facts and the decision-maker’s responsibilities, and is neither unduly suspicious nor complacent.
• The newly established test has become central in subsequent bias jurisprudence and judicial review cases in the UK.

Conclusion

Porter v Magill clarified and redefined the law relating to apparent bias by introducing the fair-minded and informed observer test, ensuring both actual and perceived impartiality in administrative decision-making and reinforcing public confidence in the fairness of such processes.