Appeal No. UKEAT/0290/11/JOJ
EMPLOYMENT APPEAL TRIBUNAL
58 VICTORIA EMBANKMENT, LONDON EC4Y 0DS
At
the Tribunal
On
6 September 2011
Before
HIS
HONOUR JUDGE RICHARDSON
(SITTING ALONE)
DOMINIC
FAVERSHAM GROUP APPELLANT
MR
A McINTYRE RESPONDENT
Transcript of Proceedings
JUDGMENT
SUMMARY
PRACTICE AND PROCEDURE – Postponement or stay
The Employment Judge wrongly held that there was no overlap at
all between the disability discrimination claim and the High Court proceedings;
and failed to consider the potential disadvantages of separating the disability
discrimination claim from the unfair dismissal claim. In view of the
Claimant’s serious medical condition the matter will be remitted with a view to
careful case management of both High Court and Employment Tribunal proceedings.
HIS HONOUR JUDGE RICHARDSON
1.
This is an appeal by Dominique Faversham
Global LLP (“DFG”) against a decision of Employment Judge Shotter sitting in Liverpool dated 5 April 2011. On 31 January 2011 Mr Andrew McIntyre brought a claim
against DFG alleging disability discrimination and constructive unfair
dismissal. On 4 March 2011 DFG brought proceedings against Mr McIntyre in the
High Court and sought a stay of the proceedings in the Tribunal. The
Employment Judge granted a stay in respect of the unfair dismissal claim but
not in respect of the claim for disability discrimination.
2.
Mr McIntyre was employed by DFG as its
Chief Financial Officer from 2 October 2006. He worked a 30 hour week. The
chief executive of DFG is Mr Mairs. On 29 April 2010 he was diagnosed with a
high-grade cancerous brain tumour. On 6 May he underwent major brain surgery
to remove the majority of the tumour. He attended the office on at least one
occasion in July. He underwent radiotherapy and chemotherapy. The last day he
worked was 2 August. He resigned on 1 November 2010.
3.
I have been shown a letter dated 18 May
2011 by Dr Haylock, consultant in clinical oncology. After summarising Mr
McIntyre’s diagnosis and treatment the letter continues as follows:
“He has suffered the usual affects of radiotherapy and
chemotherapy which includes some degree of memory loss and lethargy as well as
fatigue and inability to concentrate. He has suffered from epileptic seizures
during the treatment and recently had two seizures in May 2011 requiring
admission to The Countess of Chester Hospital. He therefore needed his anti
convulsant therapy to be increased and is now on 500mg twice a day of Sodium
Valporate.
He has had a longstanding area of blindness as a result of the
tumour affecting his brain which causes some difficulty in reading as well as
some headaches.
In view of the increase in his anti convulsant drug he is much
more sleepy and spends much of the afternoon asleep.
It is difficult to know exactly how things will develop over the
next few months. It is likely that there will be some long-term lethargy as a
result of the radiotherapy and some long-term decrease in cognitive ability as
well as some permanent visual field loss.
Ultimately the prognosis with a grade 4 tumour has to be said to
be guarded and is usually measured in months rather than years, although Andrew
so far, is doing extremely well.
His most recent MRI scan on 3 May 2011 shows no significant
change or signs of recurrent disease.”
The Tribunal proceedings
4.
Mr McIntyre’s case in the Tribunal
proceedings may be summarised as follows. He made careful preparations for his
work to be covered in the short time available to him before he had surgery.
When he returned from surgery, even though there was ongoing treatment, he did
some work and attended the office, remaining in contact with Mr Mairs.
Initially he was paid and arrangements were amicable. However in early July Mr
Mairs was insisting that he should return to work on a full-time basis by 2
August. He attempted to do so, but could not, and went off sick, working for
the last time on 2 August. He asked to work 4 days per week in the mornings,
completing his hours at home after an opportunity to rest. He produced a
medical note and letter supportive of his position. Mr Mairs refused to allow
this adjustment, replying in correspondence in an unsympathetic and unhelpful
way. He stated a grievance. Mr Mairs held no meeting, but continued to
correspond in an unsympathetic way, suggesting that he might be playing a
“silly, vexatious game”. Eventually Mr Mairs informed him he would be placed
on an indefinite and unpaid sabbatical. This was the last straw; he resigned.
5.
The claim form alleges (1) constructive
unfair dismissal; (2) discrimination arising from disability; (3)
discrimination in failing to make reasonable adjustments; (4) failure to pay
statutory sick pay.
6.
In its response form, lodged on 25 February,
DFG admits that Mr McIntyre is a disabled person. It denies the claims; says
that it proposed alternative adjustments which complied with its duty to make
reasonable adjustments; says that the comment about playing a “silly, vexatious
game” has been taken out of context; says that he resigned in the absence of
any fundamental breach; and applies for a stay.
7.
At this stage I would make one comment.
The overlap between the constructive unfair dismissal claim and the disability
discrimination claim is plain and obvious. Essentially the Claimant’s case is
that he resigned and is entitled to claim constructive dismissal by reason of
the very treatment which would constitute disability discrimination.
The High Court proceedings
8.
In the High Court proceedings DFG
(together with Mr Mairs, another individual and various associated companies)
complain that Mr McIntyre deleted various folders and files from DFG’s computer
systems. In so far as a date is given for this activity it is 2 August 2010,
the last day on which the Claimant worked – but this date is not given for all
the activity. It is suggested that the Claimant may also have destroyed or
disposed of hard copy documents and may have impermissibly retained copies.
Losses are alleged – the cost of instructing a computer forensic specialist,
said to be £10,488; the cost of accountants, said to have been assisting DFG
since October, in the sum of £22,126; and the cost of management and staff,
said to exceed 200 hours valued at more than £35,000. Claims are made for the
Claimant to file an affidavit verifying the existence and whereabouts of all
documents and records, delivery up of documents and damages. Mr McIntyre is
alleged to have acted in breach of contract and in breach of obligations of
trust and confidence.
9.
Since DFG applied to the Tribunal for a
stay Mr McIntyre has put in a defence to the High Court claim. There is no
counterclaim for wrongful dismissal. He denies the allegations and sets out
his case relating to individual files and folders. I am told that further
particulars have been exchanged; that disclosure is due to take place in
October; and that a case management conference is listed for 8 November.
10.
There are to my mind some unsatisfactory
features about the High Court proceedings. (1) If accountants were involved
from October 2010 it is to say the least surprising that the first letter
making any enquiry of Mr McIntyre or suggesting any wrongdoing is dated 18
February 2011. (2) The High Court proceedings contained claims for an
affidavit, disclosure and delivery up, which could if seriously pursued have
been the subject of an application for interlocutory relief which one might
expect to have been supported by evidence from DFG’s accountants and computer
expert. There has been no such application; and no such evidence has yet been
disclosed. Mr Paul Gilroy QC, who appears for DFG, says that there may have
been no interlocutory application because the damage was already done; but I
observe that the claim for this relief was included nevertheless in the
proceedings.
11.
Hitherto neither side has progressed the
High Court proceedings at any great pace. Mr Jones, who appears for Mr
McIntyre, says that it has not been easy to obtain full instructions from Mr
McIntyre – which is understandable, given his condition as set out in Dr
Haylock’s letter.
The application and decision
12.
DFG applied for a stay by letter dated 8
March 2011. The application was opposed by letter dated 17 March 2011. On 27
March the Employment Judge (who may then have been considering the response
rather than the subsequent correspondence) ordered a pre-hearing review to
consider the application for a stay followed by a case management discussion if
the stay was not granted.
13.
The decision under appeal was contained
in a letter dated 5 April, by which time the Employment Judge evidently had
seen correspondence. The letter says:
“A Pre-Hearing Review is not necessary. The Tribunal has
considered the documentation provided by the parties and it appears that the Claimant’s
claims for unfair dismissal and breach of contract should be stayed pending the
determination of the High Court action. However, the Tribunal does not accept
that there is any overlap between the High Court action and the Claimant’s
claim for disability discrimination.
The parties have a further 7 days to object to the proposed stay
of the unfair dismissal and wages act claims only, with the discrimination
claim proceeding. The Pre-Hearing Review will be converted to a Case
Management Discussion via telephone, which is what it should have been in the
first instance.”
14.
The Employment Judge’s letter certainly
constitutes an appealable decision, but it appears that she probably intended
the parties, if not satisfied, to object within 7 days. At all events DFG
lodged the appeal with which I am concerned today.
Submissions
15.
On behalf of DFG Mr Gilroy submits that
the Employment Judge erred in law in the following respects.
16.
Firstly, he submits that the Employment
Judge erred in finding that there was no overlap between the High Court claim
and the disability discrimination claim. Both, Mr Gilroy submits, involved
findings relating to credibility; and it would be impossible to decide quantum
in the disability discrimination claim without knowing whether Mr McIntyre had
committed fundamental breaches of contract as alleged in the High Court claim.
Secondly, he submits that the Employment Judge erred in failing to take into
account the undesirability of two actions running concurrently. Thirdly, he
submits that the Employment Judge erred in failing to take into account the
undesirability of separating out Mr McIntyre’s Tribunal claims which were
inextricably linked. Fourthly, he submits that the Employment Judge failed to
have regard to the overriding objective.
17.
There is of course only an appeal to the
Appeal Tribunal on a question of law. Traditionally the test for the Appeal
Tribunal to apply, when considering a case management decision, is whether the
Employment Judge made a decision within the broad parameters of judicial
discretion. Mr Gilroy submits that the test has changed, and that the Appeal
Tribunal should ask objectively whether the decision was right or wrong. He
relies on Terluk v Berezovsky [2010] EWCA Civ 1345 and Osborn
& Booth v Parole Board [2010] EWCA Civ 1409.
18.
On behalf of Mr McIntyre Mr Jones submits
that the traditional test is the correct test to apply (see Carter v
Credit Change Ltd [1979] ICR 908) and that the Employment Judge cannot
be said to have erred in law. He submits that there is relatively little
overlap in the issues between the proceedings; that there would be obvious
prejudice to the Claimant, given his prognosis, in putting off any part of his
claim, since he may not live to see the result of any part of it; and that the
High Court proceedings are or may be intended effectively to delay the Tribunal
proceedings – viz, that they may be “stopping writs” of the kind to which the
Court of Appeal referred in Carter v Credit Change (see 919B).
Mr Jones accepts that there is an overlap between the unfair dismissal and
disability discrimination claims. If anything, he says they should both have
proceeded.
Conclusions
19.
I am content for the purposes of this
appeal to assume in favour of Mr McIntyre that the traditional test, outlined
in Carter v Credit Change, is the correct test for the Appeal
Tribunal to apply.
20.
The traditional test requires the Appeal
Tribunal to intervene if and only if the Employment Judge applied wrong legal
principles, took into account a factor which was irrelevant in law, left out of
account a factor which it was essential in law for him to consider, or reached
a conclusion outside the ambit within which reasonable disagreement is
possible.
21.
In my judgment the Employment Judge erred
in law. There is on any view some overlap between the disability
discrimination claim and the allegations of breach of contract made in the High
Court proceedings. At the very least there is overlap when it comes to the
question of remedy. I do not see, for example, how compensation could be
assessed in accordance with the Vento guidelines without knowing
whether Mr McIntyre’s employment was in any event liable to be terminated for
fundamental breach. While I accept that there is less overlap than in many
cases of this kind, it cannot be said that there is no overlap.
22.
There is also on any view real difficulty
about separating out the disability discrimination claim from the unfair
dismissal claim, which the Employment Judge does not appear to have
considered. This would involve hearing the disability discrimination claim and
the High Court proceedings first (but separately from each other and without
considering the appropriate order); then the balance of the Tribunal
proceedings. This is not an obvious solution and could turn out to be the
worst of all possible worlds.
23.
I therefore have no doubt that the
Employment Judge’s decision should be set aside.
24.
I do not, however, think it necessarily
follows that the Employment Tribunal proceedings should wait behind the High Court
proceedings. In my judgment careful case management of the two sets of
proceedings is now required.
25.
I am conscious of two particular factors.
26.
Firstly, there is the health of Mr
McIntyre. This is potentially a very important factor in managing the case.
If he is presently capable of giving evidence and taking part in proceedings,
but this state may not long continue, then it may be very unjust to impose a
stay of one set of proceedings or the other. Careful case management may be
required to bring them on soon and in a sensible order. The general trend of
the cases is to give priority to High Court proceedings, but if this is not
possible within an appropriate time scale an urgent hearing of the Tribunal
proceedings may be appropriate. If the health of Mr McIntyre is in jeopardy it
may be of real importance to determine most of the claims now rather than wait
for a High Court trial still some distance away.
27.
Secondly, it seems to me that this is a
case which will benefit from careful case management by the Regional Employment
Judge (or an Employment Judge specifically delegated by him) and the Chancery
Division judge in charge of the list in question. Liaison between judges in
different jurisdictions is not unusual – it often occurs, for example, in cases
which involve both criminal proceedings in the Crown Court and care proceedings
in a family court. It might be possible for the two sets of proceedings to be
made ready for trial and listed within a reasonable time of each other, rather
than one set of proceedings being stayed pending resolution of the other.
28.
I will therefore remit the matter. If Mr
McIntyre wishes to oppose the application for the discrimination claim to be
stayed, I anticipate that he will apply for the stay in respect of the unfair
dismissal proceedings to be revoked (so that the Employment Judge can consider
the matter in the round), filing medical evidence from Dr Haylock. I think the
matter should be heard afresh by the Regional Employment Judge or an Employment
Judge selected by him. There will be an urgent transcript of this judgment,
and I will direct that the parties provide copies to the judge in charge of the
Chancery list in question. I do not know whether this judge will be the judge
who takes the case management conference in November; but he is best placed to
consider the matter in the first instance.
