British Telecommunications Plc v Royal Mail Group Ltd

British Telecommunications Plc v Royal Mail Group Ltd

Section 10(2) of the British Telecommunications Act 1981, read according to its natural meaning and purposively, refers to all liabilities without limitation and does not exclude liabilities in respect of former employees whose employment ceased prior to 30 September 1981. Paragraph 3 of Schedule 2 is a mechanism for defining the circumstances in which existing employees are transferred, not a limitation on the transfer of liabilities. Therefore, liabilities to former employees exposed to asbestos while working in the telecommunications part of the Post Office’s undertaking were transferred to BT.

Parties
Claimant: British Telecommunications plc; Defendant: Royal Mail Group Ltd
Jurisdiction
England and Wales
Judgment Date
07 January 2010
Procedural Posture
Civil / Judgment
Outcome
Application for declaration by BT plc fails.
Legal Topics
Transfer of Liabilities, Contract of Employment, Employee Rights, Statutory Corporation, Pension Rights
Employment Law Statutory Interpretation Tort Law Transfer of Liabilities Contract of Employment Employee Rights Statutory Corporation Pension Rights

Case Brief

Summary, issues, holding and outcome

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Parties

British Telecommunications plc

Claimant

Royal Mail Group Ltd

Defendant

Procedural Posture

Civil / Judgment

Legal Issues

  1. 1 Whether liability to pay damages to former employees of the Post Office for injuries sustained while working for the telecommunications part was transferred to British Telecommunications under the British Telecommunications Act 1981
  2. 2 Whether liabilities under contracts of employment include contingent liabilities for former employees
  3. 3 Interpretation of section 10 and Schedule 2 of the British Telecommunications Act 1981

Ratio Decidendi

Section 10(2) of the British Telecommunications Act 1981, read according to its natural meaning and purposively, refers to all liabilities without limitation and does not exclude liabilities in respect of former employees whose employment ceased prior to 30 September 1981. Paragraph 3 of Schedule 2 is a mechanism for defining the circumstances in which existing employees are transferred, not a limitation on the transfer of liabilities. Therefore, liabilities to former employees exposed to asbestos while working in the telecommunications part of the Post Office’s undertaking were transferred to BT.

Court Disposition

Application for declaration by BT plc fails.