Court of Appeal overturns 90 percent reduction in award for unfair dismissal

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By Kisean Joseph

[email protected]

The Eastern Caribbean Supreme Court of Appeal has overturned a 90 percent reduction in compensation awarded to a former Texaco employee in an unfair dismissal case.

The case involved Jacob James, a long-serving supervisor of Crew Chief at Texaco’s aircraft fuelling operation at VC Bird International Airport. James was dismissed in February 2006 following allegations of the unauthorised taking of diesel belonging to Texaco.

James was asked by the manager to leave the office and go home pending investigations.

However, in a letter dated February 1, 2006, James was dismissed by the fuel company for gross misconduct as a result of the incident. The dismissal letter also stated that the investigations revealed that 11.4 gallons of diesel were taken without the authorisation of the company and without any reasonable explanation from the appellant for the unauthorised taking of the fuel.

James then challenged his dismissal before the Industrial Court on 18th January 2012, asking the court to rule on whether or not he was wrongfully and/or unfairly dismissed from his employment; whether or not he was entitled to compensation for wrongful and/or unfair dismissal; whether or not he was entitled to compensation for Texaco’s failure to give him notice and unpaid vacation leave; and whether or not he was entitled to vacation pay.

The Industrial Court found that because James was in breach of several terms implied in his contract of employment, he was blameworthy and contributed significantly to his unfair dismissal. The court decided that it would apportion the extent of the appellant’s contribution to his unfair dismissal to be 90 percent.

Dissatisfied with the decision of the Industrial Court, James filed an appeal in the Eastern Caribbean Supreme Court of Appeal. On 21st March 2022, James argued through his attorney, Lawrence Daniels, that a finding of 100 percent contributory conduct is an unusual finding, but that in exceptional cases the court may make a deduction of 100 percent, but this is very rarely done if at all.

The respondent argued that the Industrial Court has the power to reduce an award of damages to an employee for unfair dismissal but that the issue in this case was whether in doing so, the court exercised its discretion properly.

Texaco felt that the Industrial Court had proper regard to several factors in reducing the award of the appellant by 90 percent taking into account that he was in charge of the compound at the airport and a fiduciary relationship of trust and confidence existed between him and his employer.

Taking all the submissions by both parties into account, the Appeal Court found among other things that the Industrial Court erred in finding that James contributed 90 percent to his dismissal.

The court therefore allowed the appeal against the decision of the Industrial Court, and ordered that the fuel company pay James the sum of $220,500, being the amount assessed by the Industrial Court. Texaco has to pay interest on that sum from 4th June 2021 until payment.

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