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 while certain representations were made by ICI and RES, to establish liability for negligent misstatement or breach of implied contractual terms, claimants must prove both reliance on false and negligently made representations and that such reliance was significant enough that, but for the misrepresentations, the workforce as a group would have resisted the transfer. The court found that individual claimants could not realistically have resisted transfer, and that the representations did not amount to contractual warranties or breaches of implied terms in the circumstances. No liability was established against the defendants.

Citation
[2001] EWHC 548 (QB)
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 (queen's Bench Division) Civil Claim / Judgment After Trial of Representative Claimants
Outcome
Claims dismissed
Legal Topics
Transfer of Undertakings (tupe), Negligent Misrepresentation, Implied Terms in Employment Contracts, Pensions, Collective Bargaining, Security of Employment, Collateral Warranties
Employment Law Contract Law Tort Law Transfer of Undertakings (tupe) Negligent Misrepresentation Implied Terms in Employment Contracts Pensions Collective Bargaining +2 more

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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 (queen's Bench Division) Civil Claim / Judgment After Trial of Representative Claimants

Legal Issues

  1. 1 Whether ICI and RES made negligent misrepresentations to employees regarding the terms and security of employment and pensions upon transfer under TUPE; whether such representations gave rise to contractual or tortious liability; whether implied terms of trust and confidence or good faith were breached; whether the Security of Employment Statement was incorporated into contracts; whether liability for misrepresentation transferred under TUPE.

Ratio Decidendi

The court held that while certain representations were made by ICI and RES, to establish liability for negligent misstatement or breach of implied contractual terms, claimants must prove both reliance on false and negligently made representations and that such reliance was significant enough that, but for the misrepresentations, the workforce as a group would have resisted the transfer. The court found that individual claimants could not realistically have resisted transfer, and that the representations did not amount to contractual warranties or breaches of implied terms in the circumstances. No liability was established against the defendants.

Court Disposition

Claims dismissed

Orders

  • No liability found against ICI or RES for negligent misrepresentation or breach of contract.
  • No damages awarded to claimants.