At the Tribunal On 19 March 2007 Further submissions 6 June 2007 |
|
Before
HIS HONOUR JUDGE McMULLEN QC
MR D JENKINS OBE
MRS J M MATTHIAS
APPELLANT | |
RESPONDENT |
Transcript of Proceedings
JUDGMENT
For the Appellant | Mr J E Petts (of Counsel) Free Representation Unit 6th Floor 289-293 High Holborn London WC1 7HZ |
For the Respondent | Mr A Ohringer (of Counsel) Instructed by: Oriel House 52-54 Coombe Road New Malden Surrey KT3 4QP |
SUMMARY
Disability discrimination - Disability
Compulsory admission of a patient under the Mental Health Act is not automatically a disability under the DDA 1995. In the circumstances of this case the severity of the Claimant's condition did mean she had an impairment with a substantial adverse effect on day-to-day activities.
In determining whether or not a condition is likely to recur for the purposes of the assessment of disability under the DDA 1995, it is relevant to consider not only those matters extant at the date the tort was committed, but those occurring up to the date of the hearing. Bwllfa and Merthyr v Pontypridd Waterworks Company [1903] AC 426 HL and Golden Strait Corporation v Nipong Yusen 2007 UKHL 12 applied. On the issue of whether the Claimant's mental impairment would be likely to recur at the date of her rejection for a job in 2005, it was relevant to consider that it had in fact recurred when she was recommitted under the Mental Health Act and that such was a mental impairment within the meaning of the Act.
HIS HONOUR JUDGE McMULLEN QC
Introduction
The legislation
"1.- (1) Subject to the provisions of Schedule 1, a person has a disability for the purposes of this Act if he has a physical or mental impairment which has a substantial and long-term adverse effect on his ability to carry out normal day-to-day activities.
"1(1) "Mental impairment" includes an impairment resulting from or consisting of a mental illness only if the illness is a clinically or well recognised illness."
That provision was in force at times relevant to this case but was repealed on 6 December 2005.
"Long-term effects
2.-(1) The effect of an impairment is a long-term effect if-
(a) it has lasted at least 12 months;
(b) the period for which it lasts is likely to be at least 12 months; or
(c) it is likely to last for the rest of the life of the person affected.
(2) Where an impairment ceases to have a substantial adverse effect on a person's ability to carry out normal day-to-day activities, it is to be treated as continuing to have that effect if that effect is likely to recur.
Normal day-to-day activities
4.-(1) An impairment is to be taken to affect the ability of the person concerned to carry out the normal day-to-day activities only if it affects …-
…
(g) memory or ability to concentrate, learn or understand; …
Substantial adverse effects
5. Regulations may make provision for the purposes of this Act-
(a) for an effect of a prescribed kind on the ability of a person to carry out normal day-to-day activities to be treated as a substantial adverse effect;"
"Mental impairment" does not have the same meaning as in the Mental Health Act 1983…but the fact that an impairment would be a mental impairment for the purposes of [that] Act does not prevent it from being a mental impairment for the purposes of this Act."
The Mental Health Act 1983 defines the circumstances in which a patient may be admitted for treatment:-
"Admission for treatment
3 (1) A patient may be admitted to a hospital and detained there for the period allowed by the following provisions of this Act in pursuance of an application (in this Act referred to as "an application for admission for treatment") made in accordance with this section.
(2) An application for admission for treatment may be made in respect of a patient on the grounds that-
(a) he is suffering from mental illness, severe mental impairment, psychopathic disorder or mental impairment and his mental disorder is of a nature or degree which makes it appropriate for him to receive medical treatment in a hospital; and
(b) in the case of psychopathic disorder or mental impairment, such treatment is likely to alleviate or prevent a deterioration of his condition; and
(c) it is necessary for the health or safety of the patient or for the protection of other persons that he should receive such treatment and it cannot be provided unless he is detained under this section.
General provisions as to medical recommendations
12 (1) The recommendations required for the purposes of an application for the admission of a patient under this Part of this Act (in this Act referred to as "medical recommendations") shall be signed on or before the date of the application, and shall be given by practitioners who have personally examined the patient either together or separately, but where they have examined the patient separately not more than five days must have elapsed between the days on which the separate examinations took place."
"Meaning of 'substantial' adverse effect
Al The requirement that an adverse effect be substantial reflects the general understanding of 'disability' as a limitation going beyond the normal differences in ability which may exist among people. A 'substantial' effect is more than would be produced by the sort of physical or mental conditions experienced by many people which have only minor effects. A 'substantial' effect is one which is more than 'minor' or 'trivial'"
C5 In many cases an impairment will adversely affect the person's ability to carry out a range of normal day-to-day activities and it will be obvious that the overall adverse effect is substantial or the effect on at least one normal day-to-day activity is substantial. In such a case it is unnecessary to consider precisely how the person is affected in each of the respects listed in paragraph C4. For example, a person with a clinically well-recognised mental illness may experience an adverse effect on concentration which prevents the person from remembering why he or she is going somewhere; the person would not also have to demonstrate that there was an effect on, say, speech…..
C9 In deciding whether an effect on the ability to carry out a normal day-to-day activity is a substantial adverse effect, account should be taken of factors such as those mentioned under each heading below. The headings are exhaustive-the person must be affected in one of these respects. The lists of examples are not exhaustive; they are only meant to be illustrative. The assumption is made in each example that there is an adverse effect on the person's ability to carry out normal day-to-day activities. A person only counts as disabled if the substantial effect is adverse.
C20 Account should be taken of the person's ability to remember, organise his or her thoughts, plan a course of action and carry it out, take in new knowledge, or understand spoken or written instructions. This includes considering whether the person learns to do things significantly more slowly than is normal. Account should be taken of whether the person has persistent and significant difficulty in reading text in standard English or straightforward numbers
Meaning of "likely"
B7. It is likely that an event will happen if it is more probable than not that it will happen.
B8. In assessing the likelihood of an effect lasting for a period, account should be taken of the total period for which the effect exists. This includes any time before the discriminatory behaviour occurred as well as time afterwards. Account should also be taken of both the typical length of such an effect on an individual, and any relevant factors specific to this individual (for example, general state of health, age),"
The issues
"1. By a Claim Form presented on 4 July 2005 Ms McDougall complained of disability discrimination and breach of contract (failure to pay notice pay). The disability claim was that "at all times between 21 February 2005 and 22 April 2005, the Claimant had a disability in that she had had in the past a qualifying disability (personality delusional disorder) further or alternatively, in that she would have had a disability but for the fact that she was taking medication that disability being schizo-affective disorder, a clinically well recognised psychiatric illness.
2. The Claimant was offered work on 30 March 2005 as a database assistant subject to references and health clearance and was due to commence work with the Respondent on a date to be agreed. On 22 April 2005 the offer was withdrawn by the Respondent on the ground that the Occupational Health Report had not cleared the Claimant as fit to work. The Respondent denied that the Claimant was disabled within the meaning of Section 1 of the DDA, 1995. In any event, the offer of employment was conditional upon receiving satisfactory references and medical health clearance and the Claimant failed to meet the health clearance condition."
There are two problems with paragraph 1 above. The reference to "personality delusional disorder" is not taken from the amended claim form and there appears to be a simple formatting error in the typing of the judgment. Having seen how the Tribunal deals with this matter elsewhere in its judgment, and the source of the medical diagnosis, we are confident that the reference is to "persistent delusional disorder". This will become important when we examine the authorities. In the above formulation, it looks as though the Claimant is making a claim that she is disabled for she had in the past had a disability which is likely to recur. This is indeed one of the issues recorded by the Employment Tribunal. But it does not determine the case on that basis, and that case is not pursued on appeal.
The facts
53. The evidence before us demonstrated that the Claimant had no recurrence of the schizo affective disorder after her discharge in February 2002, the episode having lasted at most for eight months. The Claimant could not point to any evidence (medical or otherwise) to demonstrate that between February to June 2005 she was likely to suffer a recurrence. The persistent delusional disorder is said to be long standing and may be life long by the medical experts. However, this is not the same as saying that it is likely to reoccur. There being no likelihood of a recurrence as at the date of the acts complained of the Claimant has not shown that there it was more probable than not that any mental impairment which produced a substantial adverse effect was likely to last for 12 months. In addition, Dr Roberts' evidence (p.82) makes it clear that a recurrence was unlikely.
The Claimant's submissions
The Respondent's submissions
Discussion and conclusions
Substantial adverse effect
"It seems to us most surprising that any Tribunal should conclude that a person admittedly diagnosed as suffering from paranoid schizophrenia and who had been dismissed partly because of what one might call bizarre behaviour consistent with that diagnosis falls outside the definition…"
Long-term effect
"In order to enable the arbitrator to come to a just and true construction it is his duty I think to avail himself of all information at hand at the time of making his award which may be laid before him. Why should he listen to conjecture on a matter which has become an accomplished fact? Why should he guess when he can calculate? With the light before him why should he shut his eyes and grope in the dark?"
[69] The basic facts of this case could hardly be simpler. On 17 December 2001 the Appellant owners accepted the Respondent charterers' repudiation of a charterparty which nominally still had nearly four years to run – to 6 December 2005. I say "nominally" because by cl 33 of the charterparty the charterers were entitled to cancel it in the event of war or hostilities breaking out between any two or more of a number of countries including the USA, the UK and Iraq. On 20 March 2003, such a war (the Second Gulf War, hereafter "the War") did indeed break out and the arbitrator has found as a fact that the charterers would in any event then have cancelled the charterparty.
[70] Indisputably the owners are entitled to damages for having been deprived of the value of this charterparty for the fifteen months or so up to the outbreak of the War. Are they, however, entitled, as they claim, to be compensated on the basis that the charterparty would have continued for the whole length of its nominal term?
[71] The owners advance their argument by reference to the familiar principle that damages for breach of contract ordinarily fall to be assessed as at the date of the breach (the breach date rule as it was called in argument). They submit that that principle is applicable here and that the assessment of damages must accordingly ignore the outbreak of the War. That, it is argued, is a subsequent event of no relevance to the proper assessment of the owner's loss in December 2001. Indeed, even had there existed in December 2001 a very substantial risk of imminent war in the Gulf, the owner's principal argument would require it to be ignored: only if it could be shown that by that date war was inevitable – "pre-destined to happen" in the words of Megaw LJ in The Mihalis Angelos [1971] 1 QB 164 (in the passage cited by my noble and learned friend Lord Bingham of Cornhill at para 14) – could it be brought into account to ensure that:
"the damages which [the owners] can recover are not more than the true value, if any, of the rights which [they have] lost, having regard to those pre-destined events" (again the words of Megaw LJ in the same passage).
The charterers submit to the contrary that, whilst certainly (given the availability of a market for the vessel's period chartering) the breach date rule would operate in this case to fix the daily net differential base charter rate, it should not determine either the period for which that loss was suffered or the date for assessing that period.
[72] A single issue has been formulated by the parties for your Lordships' determination on the appeal:
"Where damages for an accepted repudiation of a contract are claimed, in what circumstances can the party in breach rely on subsequent events to show that the contractual rights which have been lost would have been rendered either less valuable or valueless?"
Lord Scott also in the majority said
[38] The arguments of the Owners offend the compensatory principle. They are seeking compensation exceeding the value of the contractual benefits of which they were deprived. Their case requires the assessor to speculate about what might happen over the period 17 December 2001 to 6 December 2005 regarding the occurrence of a cl 33 event and to shut his eyes to the actual happening of a cl 33 event in March 2003. The argued justification for thus offending the compensatory principle is that priority should be given to the so-called principle of certainty. My Lords there is, in my opinion, no such principle. Certainty is a desideratum and a very important one, particularly in commercial contracts. But it is not a principle and must give way to principle. Otherwise incoherence of principle is the likely result. The achievement of certainty in relation to commercial contracts depends, I would suggest, on firm and settled principles of the law of contract rather than on the tailoring of principle in order to frustrate tactics of delay to which many litigants in many areas of litigation are wont to resort. Be that as it may, the compensatory principle that must underlie awards of contractual damages is, in my opinion, clear and requires the appeal in the case to be dismissed. I wish also to express my agreement with the reasons given by my noble and learned friends Lord Carswell and Lord Brown of Eaton-under-Heywood for coming to the same conclusion.
Lord Bingham in the minority cited the principles and said
[11] It is a general, but not an invariable, rule of English law that damages for breach of contract are assessed as at the date of breach. …
[12] While not, I think, challenging the general correctness of the principles last stated, the charterers dispute their applicability to the present case. Their first ground for doing so is in reliance on what, from the name of the case in which this principle has been most clearly articulated, has sometimes been called "the Bwllfa principle". It is that where the court making an assessment of damages has knowledge of what actually happened it need not speculate about what might have happened but should base itself on the known facts. In non-judicial discourse the point has been made that you need not gaze into the crystal ball when you can read the book. I have, for my part, no doubt that this is in many contexts a sound approach in law as in life, and it is true that the principle has been judicially invoked in a number of cases. … I do not think it necessary to discuss these cases, since it is clear that in some contexts the court may properly take account of later events. None of these cases involved repudiation of a commercial contract where there was an available market.
[13] The charterers further submit that even if, as a general rule, damages for breach of contract (or tort, often treated as falling within the same rule) are assessed as at the date of the breach or the tort, the court has shown itself willing to depart from this rule where it judges it necessary or just to do so in order to give effect to the compensatory principle. I accept that this is so. But it is necessary to consider the cases in which the court departs from the general rule.
"It seems to me that there is an important principle here involved that it is this, that the court should never speculate where it knows."
"In our judgment the tribunal fell into error by considering the question of disability only as at the date of the alleged discriminatory act. We are quite satisfied, as the Guidance makes clear, that the tribunal should consider the adverse effects of the applicant's condition up to and including the industrial tribunal hearing. By disregarding its findings of fact as to the actual recurrence of the adverse effects of the applicant's condition which led him to go off work by reason of depression on 16 August 1997 and to continue off work until the date of the tribunal hearing the tribunal's approach was fatally flawed."
The EAT in that case substituted a judgment that the Claimant was disabled and remitted the issue to the Employment Tribunal as to whether or not there was discrimination which was unlawful.
"17. It is always tempting to a court, and is often appropriate, when it is charged with finding out what at some earlier date the future would then have seemed to hold, to have regard to what the future in fact came to pass to be, as, by the date of the hearing, will have sometimes come to be the case. The so-called "Bwllfa principle" deals with such a position; as Lord Macnaghten put it, in relation to an arbitrator:
"Why should he listen to conjecture on a matter which has become an accomplished fact? Why should he guess when he can calculate? With the light before him, why should he shut his eyes and grope in the dark?"
See Bwllfa & Merthyr Dare Steam Collieries (1891) Ltd v Pontypridd Waterworks Co [1903] AC 426, 431. But both the terms of Schedule I, paragraph 2(1)(b), and the opening words of paragraph B8 of the Guidance emphasise that here what has to be examined is the existence or not of a likelihood. The question is not whether the impairment in fact lasted at least 12 months (as would very often, given inescapable delays in arranging hearings, be capable of being easily seen by looking backwards from the date of the hearing) but whether the "period for which it lasts is likely to be at least 12 months". Although the latter part of the first sentence of paragraph B8 is unhelpful as guidance, it is not, in our view, intended to displace the otherwise proper construction of paragraph 2(1)(b), which the present tense "is likely" assists towards, namely that the likelihood falls to be judged as it currently was, or would have seemed to have been, at the point when the discriminatory behaviour occurred. The latter part of paragraph B8 (taking account of the typical length rather than the actual length of an effect as it has transpired to be) emphasises that it is not what has actually later occurred but what could earlier have been expected to occur which is to be judged.
18. Mr Harris has sought to persuade us that Greenwood v British Airways plc [1999] ICR 969 is to the contrary, in particular at p 977E—F. It is clear that in some respects that paragraph is not to the contrary, but to the extent that it is we must respectfully differ from it."
Although the latter part of the first sentence of paragraph B8 is unhelpful as guidance, it is not, in our view, intended to displace the otherwise proper construction of paragraph 2(1)(b),
The sense of this passage is that the word should be "helpful". This is the natural juxtaposition of the two parts of the sentence. It is not easy to see why the EAT felt free, if it did, to find unhelpful guidance required to be taken into account. And it is in our view helpful. It explains the two concepts in paras 2(1)(b) and 2(2) of Schedule 1 of an impairment lasting for, or likely to recur in, 12 months.