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You are here: BAILII >> Databases >> United Kingdom Employment Appeal Tribunal >> Zaiwalla & Co v Walia [2002] UKEAT 451_00_2407 (24 July 2002) URL: http://www.bailii.org/uk/cases/UKEAT/2002/451_00_2407.html Cite as: [2002] UKEAT 451_00_2407, [2002] UKEAT 451__2407, [2002] IRLR 697 |
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At the Tribunal | |
On 20 and 21 June 2002 | |
Before
THE HONOURABLE MR JUSTICE MAURICE KAY
DR D GRIEVES CBE
MR P R A JACQUES CBE
(2) MR T HODSDON |
APPELLANT |
RESPONDENT |
Transcript of Proceedings
JUDGMENT
Revised 5/8/2002
For the Appellants | MR S ZAIWALLA (Solicitor) (EAT/451/00 only) MR S LENNARD (of Counsel) (EAT/827/00 only) Zaiwalla & Co 33 Chancery Lane London WC2A 1ZZ |
For the Respondent | MR T PITT-PAYNE (of Counsel) Instructed By: Messrs Steele & Co Solicitors 10 Park Place Lawn Lane London SW8 1UD |
MR JUSTICE MAURICE KAY:
"(1) Zaiwalla & Co. discriminated against Ms. Walia on the grounds of her sex by failing to expose her to substantial legal work, by failing to give her adequate work under supervision to appraise her suitability for a training contract, by failing to have an Equal Opportunities Policy in place and failing to take reasonable steps to enforce such a policy, by failing to prevent Mr. Hodsdon from bullying and intimidating her, by failing to take reasonable steps to prevent male employees from treating her in a demeaning and discriminating manner, by failing to carry out a proper or adequate appraisal of her suitability for a training contract and in its notification to her that she would not be offered a training contract.
(2) Mr. Hodsdon discriminated against and sexually harassed Ms. Walia by consistently treating her differently from her male comparator, Mr. D. White, and by subjecting her to intimidatory, hectoring and bullying behaviour with the intention of making her feel vulnerable and nervous and to undermine her. He also discriminated against her on the grounds of her sex in his part in the decision to refuse her a training contract. Zaiwalla & Co. was vicariously liable for Hodsdon's actions.
(3) Allegations of sex discrimination of Ms. Walia by another person in the firm were dismissed.
(4) There were implied terms in Ms. Walia's contract of employment to the effect that a proper, adequate and fair method of appraisal would be applied to decide whether or not to offer her a training contract and further that she would be given substantial legal work to carry out. Zaiwalla & Co. were in breach of contract in that no proper, adequate or fair method of appraisal was applied to decide whether or not to offer her a training contract."
The case was the adjourned for a remedies hearing which took place on 28 April 2000. On that occasion, in addition to making various recommendations pursuant to section 65 of the Sex Discrimination Act 1975, the Tribunal ordered Zaiwalla & Co. to pay Ms. Walia a total of £43,149.13 in respect of loss of future earnings, injury to feelings, aggravated damages and interest. In addition, Mr. Hodsdon was ordered to pay her £500 in respect of injury to feelings. A costs order was also made against Zaiwalla & Co. in the sum of £500.
A. The merits or liability appeal
(1) Fair trial
"The court must first ascertain all the circumstances which have a bearing on the suggestion that the judge was biased. It must then ask whether those circumstances would lead a fair minded and informed observer to conclude that there was a real possibility, or a real danger, the two being the same, that the tribunal was biased."
What, then are the circumstances referred to by Mr. Zaiwalla in the present case? First, he complains that, on the second day of the hearing, he (for it was he who was representing the firm and Mr. Hodsdon) was unfairly refused permission to introduce some further documents. At that point, Ms. Walia had completed her evidence in chief but had not been fully cross-examined. The Tribunal took the view that there had been specific pre-trial directions dealing with, amongst other things, bundles of documents and, in the exercise of its discretion, it ruled that the introduction of another bundle at that stage was inappropriate. Mr. Zaiwalla submits that the need for the documents arose or was increased as a result of things which Ms. Walia had said in chief. However, we understand that the documents in question related to the comparator, Mr. White. The importance of Mr. White as comparator was obvious from the Originating Application. We can well understand why the Tribunal was concerned to restrain an expansion of the documentation on the second day in those circumstances. In our judgment, it cannot now be said that there was any legal error in its ruling on this point.
Secondly, there is a complaint that the Tribunal Chairman repeatedly interrupted the cross-examination of Ms. Walia and unfairly imposed a time limit for the completion of the cross examination. It seems that after almost two hours of cross examination, a limit of a further 45 minutes was imposed. The fact that this was less than the examination-in-chief seems to us to be without significance. The Tribunal was in the best position to judge how appropriately or otherwise the time was being used. It was necessary to keep an eye on the clock. In the event, the evidence was only just completed in the four days that had been set aside for the hearing. We cannot say that the imposition of a time limit of a further 45 minutes was or would have appeared unfair. Moreover, the alleged interruptions seem to us to have been unobjectionable. Mr. Zaiwalla claims to have been "distracted" by them and it seems that he made this complaint after the fourteenth of fifteen interruptions, but when we asked him what lines of questioning he had been prevented from pursuing, he could give no significant example. We do not consider that there is anything in this complaint. A Chairman is not required to remain mute during a long cross-examination. If this Chairman intervened 14 or 15 times in almost three hours, that does not seem to us to raise, without more, any grounds for complaint. There is no material before us to suggest that he was doing anything more than managing the proceedings.
(2) The finding of sex discrimination
"only if an overwhelming case was made out that the Employment Tribunal had reached a decision which no reasonable Tribunal on a proper appreciation of the evidence and law would have reached. Even if the Appeal Tribunal had grave doubts about the decision, it had to proceed with great care and resist attempts by the parties to present appeals on facts as raising questions of law."
B. Quantum
(1) Loss of earnings
"…..it may be that the Applicant does not obtain a training contract until December 2000 in which case her career will have been delayed 2 years. It is possible that she will obtain a training contract in June. We prefer to believe that, on the balance of probabilities, it is likely that she will obtain a training contract in June 2000 and accordingly her loss in respect of the delay in obtaining a position as an assistant solicitor will be some 18 months. We also considered the Respondent's submission that the Applicant was unlikely to obtain work in Central London even had she qualified as a result of a training contract with the First Respondent. We did not accept that contention and noted that the Applicant had selected a figure which was the bottom of the band of salaries for newly qualified solicitors and also note that there is inevitably significant delay in the preparation of surveys of this type. Accordingly it was our view that the appropriate figure to use was £30,000 gross, or £22,500 net per annum and that the Applicant has to put against that earnings of £6,000 per annum in her present employment or training contract if one is achieved. That results in a net loss of £16,500 per annum which for a period of 18 months is £24,750. We considered that having made those various assumptions that the Applicant would not have succeeded in obtaining a training contract and would not have earned at a level of £30,000 immediately on qualification with Zaiwalla & Co. Accordingly we consider it appropriate to reduce that loss by a figure of 25% to take account of the possibility that the Applicant might not have achieved those earnings. The appropriate level of loss is therefore £18,562. 60."
(To this figure there was added an uncontroversial sum of £133.65 for the preceding period). On behalf of Zaiwalla & Co. Mr. Lennard makes the following criticisms of this approach.
Secondly, Mr. Lennard takes issue with the 25% discount, contending that in a highly competitive market, as evidenced by Ms. Walia's own difficulties in finding an alternative training contract, the discount should have been at least twice as much. This was pre-eminently a matter for the Tribunal. Nothing we have heard or read by way of submission disposes us to the view that 25% did not accord with the evidence or was otherwise afflicted by legal error.
(2) Injury to feelings.
"(1) Awards for injury to feelings are compensatory. They should be just to both parties. They should compensate fully without punishing the tortfeasor. Feelings of indignation should not be allowed to inflate the award.
(2) Awards should not be too low, as that would diminish respect for the policy of the anti-discrimination legislation. Society has condemned discrimination and awards must ensure that it is seen to be wrong. On the other hand, awards should be restrained, as excessive awards could….be seen as the way to untaxed riches.
(3) Awards should bear some broad general similarity to the range of awards in personal injury cases. We do not think this should be done by reference to any particular type of personal injury award; rather to the whole range of such awards.
(4) In exercising their discretion in assessing a sum, tribunals should remind themselves of the value in everyday life of the sum they have in mind….
(5) Finally, tribunals should bear in mind….the need for public respect for the level of awards made."
"…..the Tribunal did not consider there was any basis upon which it could be said that this was a moderate situation. This Applicant was a bright and enthusiastic mature student about to embark on a professional career in the law after a lengthy period of preparatory academic study who faced, contrary to what she had expected, prejudice against her as a woman and appalling petty conduct which resulted in extreme unhappiness on her part. She was treated worse than an office junior would have been….The Tribunal had no hesitation in placing this as a moderately severe case and in that context considered it lies well in the middle of that band of case. Accordingly, the appropriate level of award in respect of injury to feelings in this case was £15,000. The Tribunal had no difficulty in reaching that conclusion. This was not a case where the Applicant had over emphasised any of the consequences of the Respondent's discriminating actions upon her. In fact the Tribunal was left with the impression that, through natural modesty, the Applicant had to some extent underestimated the serious effect which her short period of time at Zaiwalla & Co. had on her personal self esteem and career development as a lawyer".
(3) Aggravated Damages
"This Applicant not only suffered the treatment complained of but also was treated in this way in a legal practice where we would have expected standards to apply which had some regard to equal opportunities. The Applicant was treated badly and her complaint resulted in a minimal letter in response from Mr. Zaiwalla. The Applicant was told on termination of employment that she would be supplied with no reasons for the failure to gain a training contract. She was then given a letter belittling her abilities. When she took Tribunal proceedings a monumental amount of effort was put into defending those proceedings. That exercise was of the most inappropriate kind, attacking the Applicant in relation to her personal standards of professional conduct and holding a series of threats over her head which would be daunting to any individual let alone to someone about to embark on a legal career having difficulty obtaining a training contract. The defence of these proceedings was deliberately designed by the Respondents to be intimidatory and cause the maximum unease and distress to the Applicant. There is no other way of describing it."
Conclusion of quantum
A word of warning