Laing Ltd. v Essa

Laing Ltd. v Essa

In claims for compensation for psychiatric injury resulting from unlawful racial discrimination under the Race Relations Act 1976, it is not necessary for the claimant to prove that the particular type of loss was reasonably foreseeable; it is sufficient to establish a causal link between the discriminatory act and the injury, subject to issues of intervening cause and mitigation. The Employment Tribunal erred in applying a foreseeability test to limit damages. The matter is remitted to the Tribunal to reconsider compensation in accordance with this principle.

Parties
Appellant: Laing Limited; Respondent: Yassin Essa; Interveners: Equal Opportunities Commission, Commission for Racial Equality, and Disability Rights Commission
Jurisdiction
England and Wales
Judgment Date
21 January 2004
Procedural Posture
Civil Appeal / Judgment on Appeal From Employment Appeal Tribunal
Outcome
Appeal dismissed; case remitted to Employment Tribunal for reconsideration of compensation.
Legal Topics
Race Discrimination, Damages, Remoteness of Damage, Causation, Injury to Feelings, Psychiatric Injury
Employment Law Tort Law Discrimination Law Race Discrimination Damages Remoteness of Damage Causation Injury to Feelings +1 more

Case Brief

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Parties

Laing Limited

Appellant

Yassin Essa

Respondent

Equal Opportunities Commission, Commission for Racial Equality, and Disability Rights Commission

Interveners

Procedural Posture

Civil Appeal / Judgment on Appeal From Employment Appeal Tribunal

Legal Issues

  1. 1 Whether compensation for psychiatric injury resulting from racial discrimination under the Race Relations Act 1976 requires proof of reasonable foreseeability or only causation
  2. 2 Whether injury to feelings and psychiatric injury are distinct heads of damage under the Act
  3. 3 Whether the Employment Tribunal applied the correct legal test in assessing damages

Ratio Decidendi

In claims for compensation for psychiatric injury resulting from unlawful racial discrimination under the Race Relations Act 1976, it is not necessary for the claimant to prove that the particular type of loss was reasonably foreseeable; it is sufficient to establish a causal link between the discriminatory act and the injury, subject to issues of intervening cause and mitigation. The Employment Tribunal erred in applying a foreseeability test to limit damages. The matter is remitted to the Tribunal to reconsider compensation in accordance with this principle.

Court Disposition

Appeal dismissed; case remitted to Employment Tribunal for reconsideration of compensation.

Orders

  • The appeal is dismissed.
  • The matter is remitted to the Employment Tribunal to reconsider questions of compensation, including causation, intervening cause, and mitigation, in accordance with the legal principles set out in this judgment.