Employer Vicariously Liable For Managing Director's Attack At Post-Christmas Party Drinks

When is an employer liable for an employee's actions?

Court of Appeal overturns High Court's decision

In Bellman v Northampton Recruitment Limited, the Court of Appeal has overturned the decision of the High Court and held that a drunken attack by the managing director of a small business on an employee was in the course of employment. We reported on the High Court's decision in the December 2016 edition of this bulletin.

An employer will be vicariously liable for wrongdoing by an employee if that wrongdoing is "closely connected" with the employment. This was established in the case of Lister v Hesley Hall Ltd [2001] UKHL 22. The courts have applied a broad interpretation of this test. In the recent case of Mohamud v WM Morrison Supermarkets Plc [2016] UKSC 11, the Supreme Court held a supermarket vicariously liable for an employee's assault on a customer at one of its petrol stations. This was on the basis that there was a sufficiently close connection between the assault and the employee's job of attending to customers and the wrongdoing was a misuse of the employee's position as a petrol attendant.

The case in question

In this case, Mr Major was the managing director of Northampton Recruitment Ltd. Mr Bellman was employed by the company as a sales manager. In 2011, the company organised a Christmas party for employees and their partners which took place at a golf club. After the party, a number of people who attended went on to have impromptu drinks in the bar of a hotel. The company paid for taxis to the hotel and for some of the impromptu drinks.

At around 2am a work-related discussion began concerning the placement of a new recruit within the business. Mr Major became angry and lectured his employees about his freedom to make decisions as the owner of the company. Mr Bellman, who had known Mr Major since childhood, challenged Mr Major in a non-aggressive way. Mr Major then moved towards Mr Bellman saying: "I f***ing make the decisions in this company; it's my business. If I want him based in Northampton he will be f***king based there". He then punched Mr Bellman twice. Mr Bellman fell to the floor, fracturing his skull. He suffered severe brain damage.

Mr Bellman sued his employer for damages in the High Court. The High Court held that the company was not vicariously liable for the assault. It found the impromptu drinking session was separate from the Christmas party in time and place. It decided that there was insufficient...

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