Hagen & Ors v ICI Chemicals & Polymers Ltd & Ors [2001] EWHC 548 (QB) (19 October 2001)

Hagen & Ors v ICI Chemicals & Polymers Ltd & Ors [2001] EWHC 548 (QB) (19 October 2001)

The court held that negligent misrepresentations made by ICI and RES regarding security of employment, pension comparability, and terms of employment could constitute breaches of implied contractual terms and actionable negligent misstatements if reliance and causation were proven. However, individual claimants could not realistically resist transfer, but collective opposition could have prevented it. Liability for negligent misrepresentation may transfer under TUPE if arising under or in connection with the contract.

Citation
[2001] EWHC 548
Parties
Claimant: Howard Hagen & 440 Others; 1st Defendant: ICI Chemicals & Polymers Ltd; 2nd Defendant: Kvaerner Engineering Service Limited; 3rd Defendant: Kvaerner Oil and Gas Limited; 4th Defendant: Kvaerner Cleveland Bridge Limited
Jurisdiction
England and Wales
Judgment Date
19 October 2001
Procedural Posture
High Court Civil Claim / Judgment
Outcome
Judgment on legal principles; factual determination deferred for remaining claimants
Legal Topics
Transfer of Undertakings (tupe), Negligent Misrepresentation, Implied Terms, Pension Rights, Security of Employment, Collective Agreements
Employment Law Contract Law Tort Law Transfer of Undertakings (tupe) Negligent Misrepresentation Implied Terms Pension Rights Security of Employment +1 more

Case Brief

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Parties

Howard Hagen & 440 Others

Claimant

ICI Chemicals & Polymers Ltd

1st Defendant

Kvaerner Engineering Service Limited

2nd Defendant

Kvaerner Oil and Gas Limited

3rd Defendant

Kvaerner Cleveland Bridge Limited

4th Defendant

Procedural Posture

High Court Civil Claim / Judgment

Legal Issues

  1. 1 Whether representations made by ICI and RES to employees prior to transfer were negligent misstatements
  2. 2 Whether implied contractual terms were breached
  3. 3 Whether Security of Employment Statement was incorporated into contracts

Ratio Decidendi

The court held that negligent misrepresentations made by ICI and RES regarding security of employment, pension comparability, and terms of employment could constitute breaches of implied contractual terms and actionable negligent misstatements if reliance and causation were proven. However, individual claimants could not realistically resist transfer, but collective opposition could have prevented it. Liability for negligent misrepresentation may transfer under TUPE if arising under or in connection with the contract.

Court Disposition

Judgment on legal principles; factual determination deferred for remaining claimants

Orders

  • Findings on representative cases to guide resolution of remaining claims
  • No immediate award of damages; further proceedings required to assess individual losses