- Tony Downey battles bankruptcy
- Received minimal compensation
- Legal struggle ongoing
Tony Downey experiences a slight increase in pulse rate as he ascends the main street of Hawkshead, an aesthetically pleasing village situated in the Lake District. It is his first return since he escaped abroad following the Horizon Post Office scandal, which cost him his livelihood and health.
“We avoided even saying our farewells out of sheer embarrassment. We simply fled,” he declares.
Two months after selling his post office and business, he declared bankruptcy due to insufficient funds in his accounts.
To date, he has received only £10,000 in compensation, which is significantly less than what he has lost.
“It’s cruel and an affront… [I should be in the post office at this moment]. I am devoid of a profession, funds, a pension, and all else. All of that was taken from me by them.”
His legal team is currently treating Tony’s financial redress lawsuit as a test case, given that they handled the majority of bankruptcy cases in the earliest and largest Horizon compensation scheme.
In 2001, Tony, aged 56, acquired the Hawkshead post office. He and his wife Caroline were obligated to contribute £35,000 of their personal resources over the subsequent half-decade to compensate for “losses” that never materialised.
Tony’s Return and Ongoing Battle
Instead, Horizon, a malfunctioning computer system, was at fault. They were unable to contribute an additional £7,000 due to the ongoing deficits.
“We resigned because we were out of cash. And I informed them that the post office was for sale. Although we succeeded in settling the majority of our obligations, we fell short and were therefore advised to file for bankruptcy.”
Tony was already experiencing anxiety and tension as a result of the mounting financial obligations. He claims that at one stage, he considered committing suicide.
Due to the fear of suicide, I was afraid to drive. till it was sold, I maintained its integrity till it disappeared. I actually broke down.”
Tony, who held himself responsible, was too embarrassed to remain in their small community.
They absconded with their daughter from school and departed, depriving her of the opportunity to bid farewell to her childhood companions.
“We have just escaped,” says Tony. He subsequently suffered a nervous breakdown and has been unemployed ever since.
In southern Spain, he and Caroline have been residing in a modest rented flat to be in close proximity to his parents for support. His weekly income of £120 is comprised of welfare payments.
Eighteen months ago, he was informed of the Horizon disasters.
Tony completed the compensation application form for the Horizon Shortfall Scheme (HSS). In response to Horizon’s offer, the Post Office acknowledged Horizon’s liability for the losses incurred at his branch but refuted any causality to his bankruptcy.
Tony repaid a £60,000 commercial loan secured by the residence of his wife’s parents after selling the post office and shop, as he could not risk placing it at risk.
The Post Office, however, advised Tony to settle his other obligations prior to this one. As a consequence, he has thus far been awarded a mere £10,000 in damages for personal suffering.
In lieu of compensation for his deficits and twenty-six months of lost income plus interest, Tony was granted £140,000. However, the funds have been consumed by his debts and will be distributed to the Official Receiver for the purpose of repaying his creditors. The remainder of the surplus will be given to him.
Hudgell Solicitors is presently representing Tony as they contest his offer.
“Tony has been grossly shortchanged,” says the firm’s partner, Neil Hudgell.
He contends that Tony’s insolvency would have been compensated considerably more had the Post Office acknowledged liability; such compensation could have potentially covered seventeen years of lost wages due to his inability to work.
According to Mr Hudgell, it is an especially cruel irony that the Post Office is obligated to compensate sub-postmasters but fails to do so. This is because the Post Office, in numerous instances, was the cause of the financial catastrophe that preceded these bankruptcies.
Tony states, “At the time we acquired the post office, we had no debts. The company was operating extraordinarily well. However, our £35,000 loss had a profound influence… We had no intention of declaring bankruptcy.”
“They stripped me of everything, including my career, finances, pension, and anything else.”
“At this time, they are incapable of restoring me to my former state. However, in order to do so, they are obligated to acknowledge causation.”
As of the present moment, the Horizon Shortfall Compensation Scheme comprises 74 bankruptcy cases.
As of this moment, the Post Office has acknowledged liability for bankruptcy in twenty-five cases. Although seventeen have been resolved, it is unclear whether the claimants did so with legal counsel.
Concerning over forty individuals, Neil Hudgell’s firm is attempting to “unravel the true picture” and warns that time may run out before a resolution is reached for some former subpostmasters and postmistresses.
He believes that the HSS erred when it refused to acknowledge the Post Office as the cause of his client’s bankruptcy and that Mr Downey has “a very strong” proof.
Tony possessed virtually no debt prior to assuming control of the Post Office. He declared bankruptcy two months after departing… “He generated cash flow prior to recognising the issues with Horizon,” he explains.
Bankruptcy further complicates cases that are already intricate. Their resolution is taking the longest possible time, which adds to the years of agony.
“Initially, we must place more trust in subpostmasters.” In many cases, they lack the supporting documentation that substantiates particular aspects of their claim. Therefore, the objective is to mitigate the legal conflict based on attrition, adopt a holistic perspective, and adhere to ethical, just, and appropriate conduct, as Mr Hudgell asserts.
Tony’s Return and Ongoing Battle
On his initial return to the village he abandoned, Tony experiences a mixture of apprehension and affirmation.
Although his struggle is far from resolved, he still desires to “wave my small piece of paper, stating that it wasn’t me… “I was not the one.”
His former post office has been demolished. It was defunct for over a year. Currently, the structure is leased to a nursery.
“While we refrain from addressing specific cases, we acknowledge that the process of reimbursing victims of the Horizon IT scandal who have been declared bankrupt or insolvent due to Horizon shortfalls
has been intricate and protracted. For this, we extend our sincerest apologies,” a Post Office spokesperson said.
“Under the Horizon Shortfall Scheme, an impartial panel comprising forensic accounting experts evaluates every offer.” Any recipient of an offer is permitted to contest the amount and seek independent legal counsel regarding the offer; the Post Office will reimburse the expense of such legal counsel.
