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You are here: BAILII >> Databases >> Jersey Unreported Judgments >> Jeanne v Jersey Telecoms [2008] JRC 222 (19 December 2008) URL: http://www.bailii.org/je/cases/UR/2008/2008_222.html Cite as: [2008] JRC 222 |
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[2008]JRC222
royal court
(Samedi Division)
19th December 2008
Before : |
J. A. Clyde-Smith, Esq., Commissioner, sitting alone. |
Between |
Colin Dennis Jeanne |
Plaintiff |
And |
Jersey Telecom Limited |
Defendant |
The Plaintiff represented himself.
Advocate D. M. Cadin for the Defendant.
judgment
the COMMISSIONER:
1. This is an appeal by the defendant against a decision of the Master of the Royal Court to refuse to strike out the plaintiff's claim.
Background
2. The plaintiff was employed by the defendant as a business systems wiring supervisor. His contract of employment, dated 22nd June, 1998, provided in clause 3 that his employment could be terminated by the defendant by the service of one month's written notice. The contract referred to the staff handbook for procedures in relation to inefficiency and discipline.
3. On 28th March, 2000, the defendant terminated the plaintiff's employment on the grounds of his inefficiency and paid him one month's salary in lieu of notice. Subsequently, the defendant paid the defendant a further two months' salary.
4. Although the defendant denies that it treated the plaintiff unfairly or improperly, it accepts that in the period leading up to the termination of the plaintiff's employment, it failed to comply with the inefficiency procedure set out in the staff handbook. That procedure allowed for four stages; stage 1 being a verbal warning; stage 2 being a written warning; stage 3 being a final written warning; and stage 4 being dismissal. There were no minimum periods for each stage but warnings expired after 6, 9 and 12 months respectively subject to satisfactory performance.
5. By letter dated the 4th January, 2001, the plaintiff gave the defendant notice of his intention to pursue a claim for damages for unfair dismissal, wrongful dismissal, loss of opportunity, loss of reputation and breach of contract. In addition, he indicated he would be claiming for loss of earnings and States of Jersey pension contributions from March 2000, as well as Social Security payments due under Jersey law.
6. Over 5 years later on 13th October, 2007, the plaintiff registered a complaint with the Jersey Employment Tribunal under the Employment (Jersey) Law 2003. That Law came into force on 1st July, 2005, and did not have retrospective effect. However, the plaintiff informed me at the hearing that he did not pursue this complaint when he became aware of the limits to the compensation that the Tribunal could award in cases of unfair dismissal.
Pleadings
7. The plaintiff commenced the action by way of Order of Justice on 24th May, 2007. The Order of Justice referred to the sections of the staff handbook dealing with inefficiency and disciplinary procedures and asserted that the defendant was in breach of his contract of employment which led to the plaintiff's "automatic unfair dismissal".
8. The plaintiff also claimed a refund of the Employer's contributions to the Occupational Pension Scheme, citing clause 3(6)(b)(iii) of the contract of employment which is in the following terms:-
"On termination of employment for any reason ... the Employee shall be entitled to ... the transfer of all Employer's and Employee's contributions to the Employee's account under the Occupational Employment Scheme."
9. Thus, the plaintiff's claim fell into two categories, firstly a claim for damages for breach of contract leading to unfair dismissal ("unfair dismissal") and secondly a claim for the Employer's pension contributions.
10. In its answer, the defendant pointed out that a cause of action for unfair dismissal was not tenable in view of the fact that the Employment (Jersey) Law 2003 came into force after the termination of the plaintiff's employment. No such cause of action was recognised under Jersey customary law.
11. The plaintiff filed a reply in which he stated that because the Employment (Jersey) Law 2003 was not in force at the time of the termination of his contract of employment, he would refer to UK employment law - "the very same Law which the defendant had used to formulate its own contract of employment, and Terms and Conditions Handbook". By reference to English Law, he quantified his claim at £910,735 which included £100,000 for breach of contract, £100,000 for unfair/wrongful dismissal, £269,393 compensation for loss of wages from date of dismissal to the Court hearing, loss of States of Jersey contributions to the Occupational Pension Scheme of £114,059.54 and loss of future salary to retirement age of £243,360.
12. In response to a request for further and better particulars by the defendant, the plaintiff confirmed that all his claims for unfair dismissal were based upon English statutory law, specifically the Employment Rights Act 1996 (a copy of sections of which were appended to his reply). At the hearing, the plaintiff confirmed to me that the whole of his case in unfair dismissal was based upon English statutory law. He accepted that he had no remedy under Jersey customary or statutory law.
Role on appeal
13. The role to be adopted in a hearing of this type was set out by Birt, Deputy Bailiff, in Garfield Bennett v Phillips 2002/214:-
Thus my function is not limited to considering whether the jurisdiction of the Master was exercised wrongly. Rather, I have to exercise my unfettered discretion afresh by reference to the material before me, giving due weight to the decision of the Master.
Defendant's summons to strike out
14. The defendant issues a summons seeking that the plaintiff's claim be struck out on the grounds set out in Rule 6/13(1) of the Royal Court Rules 2004, namely that:-
(i) It discloses no reasonable cause of action; and/or
(ii) It is scandalous, frivolous and vexatious; and/or
(iii) It is otherwise an abuse of the process of the Court.
15. It is well established that the Royal Court applies the same principles as have been adopted by the English Courts in relation to strike out applications (see In re Esteem Settlement [2000] JLR 119 at page 127). I was referred, as was the Master, to the following extracts from the Supreme Court Practice 1999:-
16. Before turning to the decision of the Master and the submissions of the parties to me, it is helpful to set out the position under Jersey customary law, which is set out in the judgment of Birt, Deputy Bailiff in McDonald v Parish of St Helier [2005] JLR 212. In that case, the employee's contract of employment entitled the employer to terminate the contract on a week's notice, but also provided for a disciplinary procedure to be followed if misconduct were alleged, a procedure which was ignored. Birt, Deputy Bailiff, dealt with the established law as follows:-
17. His judgment then went on to deal with a situation where an employer dismisses an employee without following the agreed disciplinary procedures:-
18. The judgment set out a convenient summary of the position of Morrison J in Janciuk v Winerite Ltd (1998) I.R.L.R. 63 as follows:-
19. Birt, Deputy Bailiff, found no authority for the penultimate sentence from the judgment of Morrison J concerning bad faith in cases to which he had been referred:-
20. I have set out the customary law position fully in this way in order to make it clear that under our customary law an employer can dismiss on notice unfairly, in particular where he is in breach of disciplinary procedure set out in the contract of employment. In McDonald, heard when the Employment (Jersey) Law 2003 had been passed by the States but not brought into force, Mr Le Quesne for the employee argued strenuously that the customary law should be developed to address this unsatisfactory situation:-
21. This submission was firmly rejected by the Court:-
22. That Employment (Jersey) Law 2003 has now been implemented and the reasons put forward by the Court for not developing the customary law therefore apply with even greater force.
Decision of the Master
23. The central finding of the Master is set out in the following extract from his judgment:-
24. Clearly the Master had in mind striking out that part of the plaintiff's claim which related to unfair dismissal but declined to do so principally because the plaintiff was not legally represented.
Submissions - unfair dismissal
25. Mr Cadin, for the defendant, made it clear that the defendant was not playing procedural games. He submitted that the plaintiff's claim as a matter or law was obviously unsustainable and unarguable on all of the facts. It was wholly misconceived. The plaintiff acknowledges that he had no remedy under Jersey law for unfair dismissal and instead seeks to assert a claim based solely on English statutory law.
26. Whilst recognising that the Court may give litigants in person some leniency, he argued that allowing claims based entirely on English law to continue is both wrong in law and fails to manage the legitimate expectations of the parties. It merely gives the plaintiff false hope and requires the parties to incur significant costs. A claim, doomed to fail, brought by a litigant in person, for £910,000 is most unlikely, he said, to settle.
27. I accept these submissions. Allowing a litigant in person to continue with a claim which is obviously unsustainable is unfair to the defendant in that it is required to incur costs in defending the claim, costs it may be unable to recover, and unfair to the plaintiff in that it exposes him to a serious risk as to costs. The level of costs payable in a Royal Court action of this kind could be financially disastrous to a litigant of ordinary means.
28. I also agree that the plaintiff's claim in unfair dismissal is obviously unsustainable:-
(i) The contract of employment was between a Jersey corporation carrying on business in Jersey and a Jersey resident and the employment was to be performed in Jersey. The employment had no connection with the English jurisdiction.
(ii) Although the contract contains no express governing law clause, it is governed by Jersey law being a jurisdiction with which it is most closely connected. Indeed it has no connection with any other jurisdiction.
(iii) Save as set out below, the plaintiff accepts that there is nothing in the contract either expressly or by way of implication to indicate that English statutory law was to apply.
29. The plaintiff's argument relates to clause 12 of the contract of employment which refers to and therefore incorporates into the contract the staff handbook. Section 10 of the staff handbook, dealing with Discipline and Conduct, has the following introduction
"This section is based on, and is in the spirit of, the ACAS discipline at work document, copies of which are held by group managers, shop stewards and in the library."
30. It is this reference to ACAS (the United Kingdom Advisory Conciliation and Arbitration Service) upon which the plaintiff relies for his contention that the defendant used the Employment Rights Act 1996 to formulate the contract of employment and accordingly that Act is to apply to the contract.
31. Leaving aside the fact that this reference to ACAS applies only to Section 10 of the staff handbook on Discipline and Conduct and is not contained in Section 12 on Inefficiency Procedure, the procedure applicable in the plaintiff's case, this argument is plainly and obviously hopeless.
32. The plaintiff is aggrieved at the failure of the defendant to follow the inefficiency procedures set out in the staff handbook. He feels strongly that he has been treated unfairly in this respect. The contract of employment, in his view, is there to fully protect his interests and because he has no remedy under Jersey customary or statutory law, he is asking the Court to import English statutory law in the interests of justice. However, the Court has no such power. It cannot import statutes from foreign jurisdictions to remedy defects it may perceive in the laws of Jersey. It is for the legislature to remedy such defects, which it has subsequently done through the Employment (Jersey) Law 2003. The Court must apply the law of the Island and the fact of the matter is that in 2000, the plaintiff, like every other employee in Jersey at that time, had no remedy for unfair dismissal. The defendant was entitled to terminate his contract on notice, even if to do so was unfair.
33. If you go through the exercise, declined by the Master, of removing that part of the plaintiff's claim for unfair dismissal based on English statute, there is in fact nothing left, as acknowledged by the plaintiff. He brings no claim either in breach of contract or for unfair dismissal under Jersey customary law or Jersey statutory law.
34. In paragraph 16 of his judgment, the Master made the observation that Mr Cadin's submissions ignored the last sentence of McDonald, cited in paragraph 17 above which addresses the circumstances where an employee may be entitled to damages for lost wages both for the contractual notice period and for the additional period during which he would have remained in employment had the disciplinary procedure been followed. Mr Cadin said that submissions were made to the Master in this respect but, more importantly, no claim is brought by the plaintiff for any additional period during which he would have remained in employment had the disciplinary procedure been followed. Furthermore Mr Cadin pointed out that the staff handbook does not provide for any minimum periods for compliance with the warnings and therefore under the procedure an employee may be dismissed in a matter of days or weeks and certainly well within the equivalent of 3 months' notice given.
Submissions - Claim for the return of the Employer's Pension Contributions
35. The plaintiff accepts that under the provisions of the Occupational Pension Scheme, he had two options, namely:-
(i) A refund of his own contributions only, with 3% per annum interest less 10% being the tax levied by the Comptroller of Income Tax in regard to tax relief which may have been enjoyed when the contributions were paid; or
(ii) A transfer value (which would have comprised employer and employee contributions) to another pension scheme.
36. On 14th November, 2001, the plaintiff opted for the first option and received a refund of the contributions made by him.
37. The plaintiff's argument is that, notwithstanding the provisions of the Occupational Pension Scheme, the defendant is contractually obligated under Clause 3(6)(b)(ii) to transfer to him the amount of the employer's contributions.
38. At the hearing, the plaintiff expanded his submissions by referring to Clause 3(6)(b)(i) of the contract of employment which provides that the employee is entitled to salary and benefits to the date of termination of employment. He argued that the term "benefit" included pension contributions paid into the Occupational Pension Scheme by the defendant.
39. Advice was obtained by the administrator of the scheme from Carey Olsen who in their letter of 22nd July, 2004 pointed out that neither the expression "employee's account" nor "Occupational Pension Scheme" is defined in the contract of employment and accordingly that there would appear to be conflict between the provisions of the employment contract and the scheme regulations. They make the point that if the employer has undertaken contractual obligations and made promises under the contract of employment, it is for the employer to meet those obligations and not the scheme.
40. Mr Cadin submitted that this claim is based upon the plaintiff's misreading and misinterpretation of this clause of the contract of employment. The clause uses the word "transfer" and not "refund" and it is a transfer to the "employees account" under the "Occupational Pension Scheme". The plaintiff was given the option of transferring that value to another scheme but opted instead for a refund of his own contributions.
41. Whilst I acknowledge the force of Mr Cadin's arguments, in my view the plaintiff's case raises a question of interpretation fit to be decided by the Court.
Decision
42. For the reasons set out above, I therefore allow the appeal and overturn the Master's decision to this extent, namely that I strike out the whole of the plaintiff's claim contained in the Order of Justice other than the claim for the refund of the employer's contributions under the Occupational Pension Scheme.