Legal Matters Scotland
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21st March 2025

A free early morning round up of news for legal professionals across Scotland.
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CASES
No charges for Sturgeon under Operation Branchform
Police Scotland has announced that former First Minister Nicola Sturgeon and former SNP treasurer Colin Beattie are no longer under investigation and will face no further action under Operation Branchform, the force's investigation into the SNP's finances. Ms Sturgeon's estranged husband Peter Murrell, the party's former chief executive, has now appeared at Edinburgh Sheriff Court charged with embezzlement as part of the investigation, which began in July 2021, with arrests made in 2023. Giving a statement following the news, Ms Sturgeon said that for "almost two years, I have had this cloud of investigation hanging over me", but that she had "done nothing wrong, and I don't think there was ever a scrap of evidence that I had done anything wrong". Mr Beattie told reporters that he was "very relieved" at the news, adding: "I knew myself I had done nothing wrong but two years is a long time to be waiting for a result."
Holocaust denier extradited from Scotland is jailed
French Holocaust denier Vincent Reynouard, who spent two years hiding in Scotland, has been sentenced to 12 months in jail. Arrested in Anstruther, Fife, in 2022, he was extradited to France last year after losing a legal battle. The 56-year-old was convicted of denying war crimes, crimes against humanity, and inciting racial hatred. In addition to his prison sentence, he was ordered to pay €10,000 in damages.
Boeing sued over whistleblower death
The family of John Barnett, a Boeing whistleblower who took his own life, have filed a wrongful death lawsuit against the aerospace firm. The lawsuit alleges that the company’s conduct was the “clear, foreseeable cause" of Mr Barnett's death, claiming that he was subjected to a campaign of harassment, abuse and humiliation after he raised concerns about safety issues. It is also suggested that a retaliatory campaign by his managers amounted to a "hostile work environment."


 
POLICING
Police Scotland pays out £3m in compensation
Police Scotland has paid out more than £3m in compensation over the past five years, covering claims for wrongful arrest, employment disputes, and discrimination cases. The largest single payout was £1.68m in 2022, with most settlements believed to have been resolved out of court. The revelations come as the force faces severe financial constraints, cutting around £200m from its budget and announcing plans to close 29 stations across Scotland. The figures, obtained through a Freedom of Information request, show that while 2,438 claims were made against Police Scotland between 2019 and 2024, 320 resulted in compensation. Critics, including Scottish Conservative MSP Douglas Ross, argue that thee payouts highlight the need for reform in the police complaints system.


 
THE LAW
Family welcomes plans to block killer's parole
Relatives of Arlene Fraser, who was murdered by her husband Nat Fraser, have welcomed a proposed law that could prevent his parole unless he discloses the location of her remains. Currently serving a life sentence, Fraser has tormented Arlene's family with his silence since her disappearance in 1998. SNP Justice Secretary Angela Constance supports the proposal by Scottish Conservative MSP Jamie Greene, which would allow the Parole Board to consider his lack of disclosure when assessing his release.
FIRMS
Firm fined for sanctions breach
Herbert Smith Freehills has been fined £465,000 for violating financial restrictions related to Russia's invasion of Ukraine. The firm's Moscow office made payments totalling almost £4m to three major Russian banks, Sovcombank, Sberbank, and Alfa-Bank, contravening UK sanctions. The firm received a 50% discount on the original £930,000 fine for voluntarily disclosing the breaches to the Office of Financial Sanctions Implementation. A spokesman for HSF said: "These payments were made as a result of human error, in the final week of the winding up of our former Moscow office's operations." Economic Secretary to the Treasury Emma Reynolds said: ”Our commitment to robust enforcement of UK financial sanctions is steadfast." She added: “A just and lasting peace in Ukraine must be our priority, and UK financial sanctions continue to be essential to disrupting Russia's war machine and putting Ukraine on the strongest footing possible.”
FRAUD
Fraud crackdown nets 400 arrests
Police Scotland officers have arrested a man and four women in connection with a multi-million-pound investment and money laundering investigation, as part of a nationwide crackdown on fraud. The arrests were made under Operation Henhouse, a major multi-agency initiative led by the National Economic Crime Centre and City of London Police, which saw more than 400 individuals detained across the UK in February 2025. The operation has resulted in £7.5 million being seized, alongside 362 cease and desist orders and account freezing orders against a further £3.9m.

 
STV
LOCAL GOVERNMENT
Council fined over primary school carbon monoxide leak
Sheriff Jonathan Guy has imposed a £14,331 fine on East Dunbartonshire Council over breaches of health and safety conditions that led to a dangerous carbon monoxide leak at Balmuidy Primary School in Bishopbriggs. The school was evacuated on February 19 2020 after high levels of carbon monoxide leaked from a backup boiler, with Sheriff Guy noting that an investigation had found there was "significant risk to health and safety with children becoming unwell and one fainted", and that the leak could have resulted in death. Sheriff Guy, also said that he would have imposed a greater sentence if he were able, noting English guidelines with a sentencing range of between £100,000 and £250,000.
TAX
New tax plans in pipeline for oil and gas sector
Jake Landman, partner at Pinsent Masons, looks at the UK Government's public consultation to establish a new tax mechanism aimed at ensuring a stable fiscal response to future oil and gas price shocks. The initiative follows the commitment made during the Autumn Budget 2024 to phase out the energy profits levy (EPL) by 2030 or sooner if certain conditions are met. The proposed mechanism will replace the temporary EPL, activating only during periods of exceptionally high prices. Landman says the mechanism must be "predictable, sustainable, and minimises distortion in investment decisions."
ECONOMY
Interest rates held at 4.5%
The Bank of England has held interest rates amid concern over growing trade tensions and "geopolitical uncertainties," with the Bank's Monetary Policy committee voting by a majority of eight to one in favour of holding rates at 4.5%. Governor Andrew Bailey said interest rates remain "on a gradually declining path," noting that the Bank expects a "bit of a pick-up" in inflation this year but adding that it will gradually fall over time. He added that it is the Bank’s job to "make sure that inflation stays low and stable." Meanwhile, Chancellor Rachel Reeves said the Government has "work to do" to ease inflation. Inflation currently stands at 3%, exceeding the Bank's 2% target.
 


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