Private prosecution is a well-known legal concept in the UK. The legal system of the country allows its citizens and organizations to seek it against another party in the event of a wrong act. Although private prosecution has been a part of the country’s constitution since the 19th century, it became a part of British law with the Prosecution of Offences Act 1985.
Private prosecutors are independent legal experts employed by businesses for legal representation. The 2020 Ministry of Justice’s Legal aid statistics state that the average cost of a private prosecution is nearly £8,500. That’s a hefty sum for a business owner to shell out. It also means that you should have a valid reason to opt for private prosecution instead of seeking justice the conventional way.
In this article, we will outline a few scenarios when your business may require private prosecution.
1. Corporate Fraud Investigations
The incidence of corporate fraud in the UK has been steadily rising over the years. Businesses and high-net-worth individuals are at the highest risk. According to statistics, they lost £2.46 billion to fraud during the financial year 2021/22, a 17% increase over the previous year. A significant part of the statistics attribute to corporate fraud.
Activities like financial statement fraud, embezzlement, and insider trading make companies susceptible. If you suspect any of these within your ranks, bringing in a private prosecutor is a wise move. Private prosecution solicitors investigate financial irregularities, gather evidence, and build a case against the perpetrators. Bringing them on board can protect your finances, reputation, and stakeholder trust.
Edmonds, Marshall, McMahon recommends the route because it is quicker, more efficient, and more focused than public prosecutions. It is apt in fraud investigations where timing is crucial. Letting the perpetrators unchecked means they may cause more damage to your business.
2. Intellectual Property Disputes
Intellectual property (IP), such as copyrights, patents, designs, and trademarks, is perhaps one of the most valuable assets for a business. Losing it can hurt your brand more than you imagine. Unfortunately, IP breach is more common than you imagine. The annual estimate for IP theft value in the UK is a staggering £9.2 billion.
Even if you get hold of the business breaching your IP, disputes can often be complex and protracted. You can rely on a private prosecutor to help your business enforce its IP rights. They can also build your defense against infringement claims if you are wrongly accused. Their expertise and understanding of the intricate IP laws can safeguard your creative works and innovations from unauthorized use.
3. Regulatory Compliance Issues
Regulatory compliance is among the biggest challenges for UK-based business organizations. If you run a business in the country, you need to comply with an array of regulations, regardless of size and domain. Here are a few instances:
- Finance regulations, such as payroll, HMRC, tax, accounting, and record-keeping
- Health and safety for workers and visitors
- Employment law and workers’ rights
- Companies House and anti-money laundering regulations
- General Data Protection Regulation (GDPR)
Besides these compliance requirements, your company may have more to deal with, depending on its size and industry. For instance, the healthcare, finance, and environmental sectors must follow several compliance guidelines. The sheer number of regulations means you may skip them, even unintentionally. The worst part is that non-compliance can land your business in legal trouble and penalties.
Private prosecutors are well-versed in regulatory laws, making them the go-to source for compliance-related guidance. Besides helping you maintain compliance, they can be the saviors if regulatory authorities launch investigations.
4. Employment Disputes
Employment-related legal challenges can be complex for businesses to navigate. Moreover, statistics highlight that employment-related conflict costs UK employers £28.5 billion annually. Workplace harassment, wrongful termination, and discrimination claims have more than financial costs. They can tarnish your company’s reputation and employer brand.
You can save your company from financial loss and reputational damage by hiring a private prosecutor specializing in employment law. Besides offering guidance to adhere to employment regulations, they can represent your business in negotiations or defend your interests in court with a strong defense against unfounded claims.
5. Contract Disputes and Commercial Litigation
Contract disputes and commercial litigation are commonplace in the UK corporate landscape. You may encounter them in various forms, such as a breach of contract, disagreements over terms and conditions, and payment disputes. The Federation of Small Businesses notes that a whopping £12 billion of UK small business funds are tied up in disputes. Even large corporations want to avoid this extra cost because it can be stressful.
Hiring a private prosecutor proficient in contract law is the best way to address these issues. These legal experts mediate, negotiate settlements, or litigate on your behalf as necessary. With their expert advice, you can ensure that your contracts are sound enough to provide robust legal protection if disputes arise.
Conclusion
Businesses face complex legal issues as a part of their operations. These problems cause more than financial strain as they can jeopardize stability and growth. When you face these issues, you can consider private prosecution as an alternative to traditional litigation.
It gives you more control over the speed of the investigation because you don’t need to depend on the police or the Crown Prosecution Service (CPS). There cannot be a more effective way to seek justice and protect your business.
