When Power Goes Wrong · Who Pays? · Part 25
The Who Pays Matrix: liability is not the same thing as the funding decision.
A complete public-liability analysis must track both the legal claim and the public-money chain. Judgment, settlement, ex gratia payment, costs, indemnity and compensation scheme each reach public money by different authority.
The “Who Pays?” layer adds a second chain to the Remedy Matrix.
1 · What is the payment?Judgment damages, settlement, statutory compensation, costs award, ex gratia payment, indemnity or insurance reimbursement?
2 · Who owes it legally?Crown, department, council, Crown entity, officer, insurer or another defendant?
3 · Who approves payment?Court judgment may establish liability; settlement/ex gratia approval may sit with chief executive, appropriation Minister or Cabinet depending on type and amount.
4 · What public-finance authority applies?Appropriation, statutory authority, indemnity provision or entity funds.
5 · Who oversees legal position?Crown Law/Law Officers for core Crown legal business where the Cabinet Directions apply.
6 · Are costs separate?Damages do not automatically reimburse all legal fees; court costs and settlement costs must be identified independently.
7 · Was liability admitted?Read the judgment or settlement terms; ex gratia payment expressly need not recognise liability.
8 · How is the payment satisfied?Ordinary entity payment or Crown Proceedings Act judgment-satisfaction machinery depending on defendant and instrument.
Series finding.Public liability has two ledgers: the legal ledger determines who is liable and what remedy exists; the financial ledger determines who may authorise the payment, which appropriation or statutory authority funds it, and whether the payment acknowledges liability at all.
Never stop at “they agreed to pay”. Ask who legally owed the money, who authorised the spend, where the spending authority came from, and what the payment instrument actually settled.
Core financial authoritiesCO (18) 2; CO (16) 2; Public Finance Act 1989.