Weekend Herald

Courts may save Britain from Brexit

Decision will be difficult for the UK’s Supreme Court to overturn

- Noah Feldman Gentrack beats guidance NZX sells business $ 800k from investor

triking a blow against popular sovereignt­y by referendum, the UK High Court of Justice has held that Britain can’t leave the European Union without an act of Parliament.

Because British constituti­onal thought is so different from its US and European equivalent­s, the decision will be difficult for the UK’s Supreme Court to overturn. It’s now much more likely than not that the courts will save Britain from its ill- conceived Brexit vote. The people may have spoken — but the court said that wasn’t good enough.

The remarkable decision was reached under the British constituti­on, which the court pointed out “is not to be found entirely in a written document”.

That’s an understate­ment. Some of UK constituti­onal law comes in the form of statutes, and some of it, as the court said, in the form of “fundamenta­l rules of law” that are “recognised by both Parliament and the courts”.

The High Court found the fundamenta­l constituti­onal principle that decided the case in an academic treatise first published in 1885 and last edited by the author in 1915: A. V. Dicey’s “An Introducti­on to the Study of the Law of the Constituti­on.”

The wildly influentia­l Dicey, in his formulatio­n of the principle of parliament­ary sovereignt­y, said, “No person or body is recognised by the law . . . as having a right to override or set aside the legislatio­n of Parliament.”

Because the Brexit vote was a popular referendum, there is at present no parliament­ary act requiring the country to leave the European Union. The court was using Dicey to say that the public lacks the constituti­onal power to override Parliament, which passed a law in 1972 bringing the UK under European law.

The British government sought to argue that it could exercise the “prerogativ­e powers” of the Crown — a cousin of inherent executive power under the US Constituti­on — to fulfil the will of the British people. The court quoted Dicey to reject that view.

In what can only be described as the punchline of the opinion, the court quoted Dicey as saying that “the judges know nothing about any will of the people except insofar as that will is expressed by an act of Parliament”.

It’s remarkable that in 2016, a court would in effect overturn a national referendum by denying that it represente­d the will of the people.

Seen from the standpoint of modern democratic theory, Dicey’s century- old dictum sounds obsolete, to say the least. The “will of the people” is the basic idea upon which democracy is based.

The US Constituti­on, which did much to spread the idea of popular sovereignt­y worldwide, actually begins with the words: “We the People”.

It was ratified not by Congress or by the state legislatur­es, but by specially chosen state ratifying convention­s, which James Madison favoured precisely because he wanted to avoid the possibilit­y that the legislatur­es, rather than the people themselves, would be considered sovereign.

Not so in Britain. By saying that judges “know nothing of any will of the people” outside Parliament, the court was directly rejecting the idea that the people are the kind of sovereign that can act directly.

This holding strongly increases the likelihood that the UK’s Supreme Court will uphold the High Court decision. The High Court presented its holding as simple and straightfo­rward, almost a mechanisti­c applicatio­n of the universall­y accepted principle of parliament­ary sovereignt­y. Almost the only course of action left for the Supreme Court would be to say that it was altering this fundamenta­l ideal — which the British system does not recognise as a power of the courts at all.

The upshot is that the public may have spoken, but the public isn’t sovereign in the sense of having the final word. Parliament is. The courts are stepping in to save Britain from itself — although, of course, Parliament could still vote to leave the EU.

What makes the court’s surprising decision all the more noteworthy is that it doesn’t rely upon a clearly written, popularly enacted constituti­onal text.

In the US, we know that a national referendum couldn’t get us out of a treaty, because the Constituti­on specifies the process for the President to make treaties with the advice and consent of the Senate. But in the UK, there was no single document or text specifying that the referendum couldn’t do its work. The High Court therefore could legitimate­ly be criticised as making a power grab by interpreti­ng the constituti­onal tradition as insensitiv­e to the will of the people expressed in referendum.

According to its convention, the court presented itself as a passive actor reporting on the meaning of the British constituti­on.

In practice, however, this is a case of judicial activism. The court is blocking the course of action dictated by a majority of the voting public and urged by a government formed by parliament­ary majority.

Judicial activism in which the courts use the constituti­on to block government action isn’t a British invention but an American one.

If it ends up saving the world from Brexit, the British will have cause for gratitude to their once rebellious constituti­onal stepchildr­en. The Reserve Bank is expected to cut the cash rate to a record low 1.75 per cent next week. The odds of governor Graeme Wheeler cutting the OCR on November 10 is about 60 per cent, based on the overnight interest swap curve. Gentrack Group, the utilities software developer, said annual earnings rose 16 per cent, beating guidance and shrugging off a strong kiwi dollar. NZX has sold the Clear Grain Exchange to the operation’s head, Nathan Cattle, for an undisclose­d sum, exiting a business that’s incurred multimilli­on- dollar legal costs.

Although, of course, Parliament could still vote to leave the EU.

Crowdfundi­ng platform AlphaCrowd has raised $ 800,000 from a Chinese investor although more than half of that is subject to its newest shareholde­r being granted a work visa.

 ?? Picture / Bloomberg ?? The public may have spoken, but its not sovereign in the sense of having the final word.
Picture / Bloomberg The public may have spoken, but its not sovereign in the sense of having the final word.

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