Stagg wins £700,000 'lottery' payout but son who saw Rachel Nickell murdered gets just £90,000
By
Arthur Martin and
Charlotte Gill
Last updated at 12:38 AM on 14th August 2008
Compensation: Colin Stagg with the Home Office letter
The man cleared of murdering Rachel Nickell spoke last night of his delight at being awarded a record £706,000 damages for the police blunders which ruined his life.
Colin Stagg, 45, described the payout as 'like winning the lottery'.
His only immediate spending plans were to buy his council flat and put in a new kitchen and bathroom.
Mr Stagg spent 13 months in custody and had his reputation torn to pieces before a judge threw out the case. But he still endured more than a decade of speculation that he was, in fact, the killer.
Last year Robert Napper was charged with the murder. He will stand trial in November.
The Home Office payout - a record for someone wrongly charged - is certain to provoke a debate over the compensation system for victims of crime.
It dwarfs the amount paid to Miss Nickell's son Alex, who witnessed her murder at the age of two. It took a seven-year legal battle before the youngster, now living abroad with his father, was awarded £90,000 for trauma and loss of the services of a mother.
Lawyers for Mr Stagg last night refused to rule out further legal action. Solicitor, Alex Tribick, said they would consider suing the Metropolitan Police.
Miss Nickell, 23, a former part-time model, was on Wimbledon Common in South West London with Alex in 1992 when she was stabbed 49 times and sexually assaulted in broad daylight.
A year after the killing, police charged Mr Stagg following a controversial 'honeytrap' operation involving an undercover woman detective who was used to encourage him to make a confession.
Stagg sent her letters fantasising about perverted sex involving knives and bondage. Crucially, however, he never confessed to Miss Nickell's murder.
The case was thrown out at the Old Bailey in 1994 when a judge lambasted the police methods.
Rachel Nickell pictured in July 1992.
Despite his acquittal. Mr Stagg - who has a conviction for a minor sex crime - claimed the stigma of the case made him unemployable and a 'national hate figure'.
Mr Stagg's legal team submitted a 70-page compensation claim after the Home Office told him he was eligible under a discretionary payout scheme. The offer came in a letter from the Office for Criminal Justice Reform.
How events unfolded over 16 years
The amount was decided by Lord Brennan QC, an independent government assessor, who described the police tactics in building the case as involving 'manipulation and deception, some of it of a highly reprehensible kind' and said they had contributed directly to the size of the payout.
He said prosecution of the case had been 'egregious'.
Speaking outside his council flat in Roehampton, West London, last night Mr Stagg said: 'It hasn't sunk in properly yet. I thought at first my solicitor was joking.
'I thought the Establishment would make a token payment, but this is like winning the lottery. But what pleases me more than the money is that this is effectively a public apology.
'I've no doubt there will still be people who resent me getting it and some who actually believe I'm guilty. But over the years, I've come to terms with my life, such as it is.'
Mr Stagg has spoken of his desire to set up a landscape gardening business with his payout. He has previously expressed a wish to start a family with his girlfriend of two years, Terri Marchant, and hopes of starring on a reality TV show.
He said: 'The best thing is being able to get off the dole. I am a proud man who has never been afraid of work, but nobody in the countless interviews I have attended has wanted to take me on.
'Now I can work and I've got some small business ideas. I am slowly realising that I have a future after all and that is a great feeling.'
Mr Tribick said: 'It will go some way to compensating him for the vilification that he has received for the least 16 years, though Colin is realistic enough to realise that, in some people's eyes, he will always be the bloke who got away with murder.'
The compensation cost of the Nickell case to the taxpayer is rapidly approaching £1million.
The officer involved in securing Mr Stagg's confession received £200,000 after it was accepted she should have been given counselling following her 'harrowing and dangerous assignment'.
Enlarge Rachel Nickell in a picture from 1992 with her boyfriend Andre Hanscombe and their baby son Alex