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
- Whether the District Auditor’s conduct, particularly publicizing preliminary findings in press conferences before Porter's fair hearing, gave rise to apparent bias.
- What legal test should be applied to determine apparent bias in administrative decision-making.
- 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.