Hogan v. Steele & Co. Ltd. [2000] IESC 26; [2000] 4 IR 587; [2001] 2 ILRM 321 (1st November, 2000)

Hogan v. Steele & Co. Ltd. [2000] IESC 26; [2000] 4 IR 587; [2001] 2 ILRM 321 (1st November, 2000)

The plaintiff is only entitled to recover from the defendant the net wages (after PAYE, PRSI, and pension deductions) lost during incapacity, as that is the actual loss suffered. There is no legal basis for the recovery of gross wages or the statutory deductions, as these were not losses suffered by the plaintiff nor loans to him by the employer.

Citation
[2001] 2 ILRM 321
Parties
Notice Party/appellant: ESB; Defendant/respondent: Defendant; Plaintiff: Plaintiff
Jurisdiction
Ireland
Procedural Posture
Civil Appeal / Supreme Court Judgment on Appeal From High Court
Outcome
Appeal dismissed; High Court order affirmed
Legal Topics
Damages, Loss of Earnings, Third Party Payments, Paye/prsi/pension Deductions
Tort Law Employment Law Damages Loss of Earnings Third Party Payments Paye/prsi/pension Deductions

Case Brief

Summary, issues, holding and outcome

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Parties

ESB

Notice Party/appellant

Defendant

Defendant/respondent

Plaintiff

Plaintiff

Procedural Posture

Civil Appeal / Supreme Court Judgment on Appeal From High Court

Legal Issues

  1. 1 Whether damages for loss of earnings should be calculated on gross or net basis when employer has paid wages during incapacity and plaintiff has undertaken to refund such sums if recovered from third party
  2. 2 Whether deductions for PAYE, PRSI, and pension contributions are recoverable from the defendant

Ratio Decidendi

The plaintiff is only entitled to recover from the defendant the net wages (after PAYE, PRSI, and pension deductions) lost during incapacity, as that is the actual loss suffered. There is no legal basis for the recovery of gross wages or the statutory deductions, as these were not losses suffered by the plaintiff nor loans to him by the employer.

Court Disposition

Appeal dismissed; High Court order affirmed

Orders

  • Plaintiff/ESB entitled to recover net wages only (after deductions) from defendant
  • No recovery for PAYE, PRSI, or pension contributions