Logan v Commissioners of Customs and Excise

The Court of Appeal dismissed the Commissioners' appeal against the Employment Appeal Tribunal and remitted the matter for rehearing. The central legal principle concerned the rare exercise by an Employment Tribunal to accede to a respondent's submission of no case to answer at the close of the claimant's evidence in a constructive dismissal claim. The court held that the tribunal erred in law by stopping the hearing after the claimant's evidence without hearing the employer's witnesses where the claimant's uncontradicted evidence could have established bullying and thus a potential constructive dismissal, and where the tribunal failed to give adequate reasons on the crucial "last straw" issue in accordance with the requirement for a reasoned decision (see Meek/English). The court also identified unresolved questions about affirmation/waiver of earlier breaches which required fuller investigation on rehearing.

Background and procedural posture

• Nature of claim: complaint of unfair dismissal based on alleged constructive dismissal arising from bullying and from an improperly conducted grievance investigation.
• Procedure to date: Employment Tribunal dismissed the claim at the close of the claimant's case by acceding to the employer's submission of no case to answer (13 March 2000). The Employment Appeal Tribunal allowed the claimant's appeal (23 May 2002). The Commissioners obtained permission to appeal to the Court of Appeal.

Facts

Ms Logan alleged a verbally abusive incident by her line manager in April 1997 that caused prolonged sickness absence, an inadequate grievance investigation by Mr McGuire culminating in October/November 1997, unsuccessful attempts to relocate her, and later meetings with her manager Mr Ballance in January and May 1999 in which she was told the options were return, medical retirement or dismissal. She resigned in May 1999.

Issues framed

1. Whether it was lawful and proper for the Employment Tribunal to accede to a submission of no case to answer at the close of Ms Logan's evidence in a constructive dismissal/unfair dismissal claim.
2. Whether the tribunal gave adequate reasons on the "last straw" point and thereby complied with the requirement to give a reasoned decision.
3. Whether earlier breaches (the defective grievance investigation and the alleged bullying) had been waived or affirmed by delay and whether matters could be judged cumulatively for the "last straw" doctrine.

Court's reasoning and resolution

The Court of Appeal reviewed earlier authorities on the exceptional nature of stopping a case at the claimant's close of evidence (including Oxford, Ridley, Coral, Jones and related authority) and emphasised caution. The court concluded the Employment Tribunal was wrong to treat the claimant's uncontradicted evidence as insufficient without hearing the employer, because the claimant's evidence could have established bullying and a constructive dismissal and because the tribunal gave no adequate explanation for rejecting the "last straw" argument as required by Meek and English. The tribunal had also treated the lapse of time as determinative without properly addressing whether the claimant had continued to protest (relevant to affirmation/waiver). For these reasons the appeal was dismissed and the matter remitted for rehearing by a differently constituted Employment Tribunal.

Appeal dismissed. The Court of Appeal held that the Employment Tribunal erred in law in acceding to the employer's submission of no case to answer at the close of the claimant's evidence in a constructive dismissal complaint because the claimant's uncontradicted evidence could have established bullying and required the employer to give evidence; the tribunal also failed to give adequate reasons on the "last straw" issue and did not properly address potential affirmation/waiver. The case was remitted for rehearing.

Appeal from the Employment Appeal Tribunal (appeal allowed there on 23 May 2002). The Employment Tribunal had dismissed the claimant's unfair dismissal complaint on 13 March 2000 by acceding to a submission of no case to answer. Permission to appeal to the Court of Appeal was granted by Peter Gibson L.J.; Court of Appeal judgment delivered 23 July 2003 (Neutral citation: [2003] EWCA Civ 1068).