Liability of Former Employer for Negligent Statement

Since the 1995 House of Lords' decision in the case of Spring v Guardian Assurance, it has been well established that an employee may make a claim for damages for negligent misstatement where a reference has been negligently prepared by an employer. Now, in the 2011 case of McKie v Swindon College, the High Court has extended this principle to a statement made by a former employer which was not a reference. In this case, the statement was made about the Claimant some 6 years after he had left their employ. As a consequence of the statement, the Claimant lost his job.

Although this was not a reference case the Court held that a duty of care applied. The Court held that the claim should succeed because the 'damage was foreseeable, the relationship was sufficiently proximate, [the claim was] fair, just and reasonable and there [was] a causal connection between the negligence in and about the sending of the email and the damage [claimed].'

This case therefore serves as a reminder to employers on the importance of giving accurate references; a note of caution to former employers on making statements about former employees; and as a precedent now for employees who have been wronged by negligent misstatements by both employers and former employers.

For more infomation please contact one of the following:

Name Position Office
Patrick Langrishe Partner Budleigh Salterton
Craig Oliver Solicitor Exeter
Denise Strawbridge Legal Executive Exeter

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