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You are here: BAILII >> Databases >> England and Wales Court of Appeal (Civil Division) Decisions >> Brink's Global Services Inc & Ors v Igrox Ltd & Anor [2010] EWCA Civ 1207 (27 October 2010) URL: http://www.bailii.org/ew/cases/EWCA/Civ/2010/1207.html Cite as: [2010] EWCA Civ 1207, [2011] IRLR 343 |
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ON APPEAL FROM THE HIGH COURT OF JUSTICE
QUEEN'S BENCH DIVISION (COMMERCIAL COURT)
(Mr. Martin Mann Q.C.)
2008 Folio 147
Strand, London, WC2A 2LL |
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B e f o r e :
LORD JUSTICE MOORE-BICK
and
LORD JUSTICE WILSON
____________________
BRINK'S GLOBAL SERVICES INC and others |
Respondents |
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- and - |
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IGROX LIMITED and another |
Appellant |
____________________
Mr. Tim Marland (instructed by Waltons & Morse LLP) for the respondents
Hearing dates : 14th July 2010
____________________
Crown Copyright ©
Lord Justice Moore-Bick :
The circumstances surrounding the theft
"27. It is important at this point to examine Renwick's conduct a little more closely, since this is not a case in which an employee's duty simply provided him with an opportunity to steal of which he took advantage. He would have known he could safely open the container doors if the container had not been gassed, and he could therefore judge that he could safely steal the silver bars if he returned as a time when Mr. B. was taking a coffee or tea-break, which, as it happened, he seems to have been. It is a ready inference, which I draw, that this, or something very like it, was his state of mind. The only precaution he had to take was to ensure that the container was not gassed, and this he clearly did albeit the evidence did not reveal whether it was his or Mr. B's decision not to gas the container. It would not assist Igrox had the evidence revealed that Mr. B. was responsible for the omission to gas the container because it was equally open to Renwick to ensure that it was gassed, as it should have been. The fact that he plainly did not ensure that it was gassed is, in my judgment, strong circumstantial evidence that he had conceived a dishonest design, perhaps there and then, which his omission to carry out [the gassing] would enable him to bring to fruition when Mr. B was out of the way and he was alone.
. . .
33. In my judgment, it is beyond argument that the failure to gas the container facilitated the theft and that the theft was the fruition of Renwick's dishonest design (see paragraph 27). . . . It was not Renwick's employment which made the theft possible. On the contrary, it was Renwick's improper performance of his duty as an employee as part of his dishonest design which made the theft possible. . . "
Vicarious liability
"In certain circumstances the law has had no difficulty in holding the master vicariously liable for the acts of his servant, e.g. where the master has approbated the dishonest act of the servant, or where the servant commits the dishonest act in the furtherance of the master's purpose: see Lloyd v Grace, Smith & Co [1912] AC 716. Thus, where the master delegates his responsibility as a bailee or custodian or guard to his servant, and in the course of acting as delegate the servant commits a crime, then the master is vicariously responsible: see Morris v C.W. Martin & Sons Ltd [1966] 1 Q.B. 716 and Photo Production Ltd v Securicor Transport Ltd [1980] AC 827. But, where the act is one quite outside the purpose for which the servant was employed, then the master is not liable, e.g. when the servant "is on a frolic of his own." The more difficult question is the one which arises in this case, namely: is the master liable for a tortious or even criminal act committed by the servant which is wholly outside the scope of his employment but in circumstances in which the opportunity to commit the act is created by the servant's employment?"
"These authorities support the proposition that before the master can be held to be vicariously liable for the acts of the servant there must be established some nexus other than mere opportunity between the tortious or criminal act of the servant and the circumstances of his employment. In the present case, apart from the obligation to dust and once a week to disinfect the telephone, there is nothing more than the provision of the opportunity to commit the tort or crime."
"A master is not liable for a tort committed by his servant unless it is committed in the course of the servant's employment. An act is not done in the course of the servant's employment if it is one which is not authorised by the master. But if an authorised act is done in an unauthorised manner it is done in the course of the employment.
In the present case Bonsu was, broadly speaking, authorised to clean the telephones. He was not authorised to use them. The unauthorised use of a telephone cannot properly be regarded as the cleaning of it in an unauthorised manner. It is another and entirely separate act. But it was suggested that the giving of access to the premises and to their contents to the defendant, and through it to Bonsu, in some way amounted to a bailment of the contents or the equivalent. Reliance was placed on the decision of this court in Morris v C.W. Martin & Sons Ltd [1966] 1 Q.B. 716. That is an impossible view of this case. Although Bonsu was no doubt required to clean the telephones carefully, he was required to handle them for that purpose only. He was neither required nor authorised to take custody of them. He would, for example, have been under no duty to prevent a third party from using them. I agree with Purchas L.J. that the judgments in the case cited point inevitably to a decision of this question in favour of the defendant."
"25. In my view the approach of the Court of Appeal in Trotman v North Yorkshire County Council [1999] LGR 584 was wrong. It resulted in the case being treated as one of the employment furnishing a mere opportunity to commit the sexual abuse. The reality was that the county council were responsible for the care of the vulnerable children and employed the deputy headmaster to carry out that duty on its behalf. And the sexual abuse took place while the employee was engaged in duties at the very time and place demanded by his employment. The connection between the employment and the torts was very close."
And a little later he said of the case before the House:
"The question is whether the warden's torts were so closely connected with his employment that it would be fair and just to hold the employers vicariously liable. On the facts of the case the answer is yes."
"the wrongful conduct must be so closely connected with acts the partner or employee was authorised to do that, for the purpose of the liability of the firm or the employer to third parties, the wrongful conduct may fairly and properly be regarded as done by the partner while acting in the ordinary course of the firm's business or the employee's employment. "
He recognised, however, that this imports a value judgment by the court having regard to all the circumstances of the case, an exercise in which he considered that a significant degree of assistance may often be derived from previous decisions. However, as was noted by this court in Mattis v Pollock, Lord Nicholls did not say that any earlier decision on similar facts should be regarded as authoritative or even that the reasoning or outcome could necessarily be regarded as sound in the light of more recent decisions of the House.
"Lister is, however, important for a number of reasons. It emphasised clearly the intense focus required on the closeness of the connection between the tort and the individual tortfeasor's employment. It stressed the need to avoid terminological issues and to adopt a broad approach to the context of the tortious conduct and the employment. It was held that the traditional test of posing, in accordance with Salmond's well-known formula, the question whether the act is "a wrongful and unauthorised mode of doing some act authorised by the master" is not entirely apt in cases of intentional wrongs: Salmond, The Law of Torts, 1907, 83, now contained in the current edition of Salmond and Heuston, The Law of Torts, 21st ed., 1996, 443. This test may invite a negative answer, with a terminological quibble, even where there is a very close connection between the tort and the functions of the employee making it fair and just to impose vicarious liability. The correct approach is to concentrate on the relative closeness of the connection between the nature of the employment and the particular tort, and to ask whether looking at the matter in the round it is just and reasonable to hold the employers vicariously liable. In deciding this question a relevant factor is the risks to others created by an employer who entrusts duties, tasks and functions to an employee. This strand in the reasoning in Lister was perhaps best expressed by Lord Millett who observed (para 83, at 250D):
" . . . Experience shows that in the case of boarding schools, prisons, nursing homes, old people's homes, geriatric wards, and other residential homes for the young or vulnerable, there is an inherent risk that indecent assaults on the residents will be committed by those placed in authority over them, particularly if they are in close proximity to them and occupying a position of trust."
While the facts of Lister are very different from the circumstances of the present case, the principles enunciated in Lister are of general application to intentional torts."
"26. Approaching the matter in the broad way required by Lister, the constable's subsequent act in arresting the plaintiff in the hospital is explicable on the basis that the constable alleged that the plaintiff had interfered with his execution of his duties as a policeman. It is retrospectant evidence which suggests that the constable had purported to act as a policeman immediately before he shot the plaintiff.
27. Moreover, one must consider the relevance of the risk created by the fact that the police authorities routinely permitted constables like Constable Morgan to take loaded service revolvers home, and to carry them while off duty. The social utility of allowing such a licence to off duty policemen may be a matter of debate. But the state certainly created risks of the kind to which Bingham JA made reference. It does not follow that the using of a service revolver by a policeman would without more make the police authority vicariously liable. That would be going too far. But taking into account the dominant feature of this case, viz that the constable at all material times purported to act as a policeman, the risks created by the police authorities reinforce the conclusion that vicarious liability is established."
"21. As we see it, the authorities show that the essential question is that posed in Lister and adopted in Mattis, namely, whether the tort is so closely connected with the employment, that is with what was authorised or expected of the employee, that it would be fair and just to hold the employer vicariously responsible. In answering that question the court must take account of all the circumstances of the case, as Lord Steyn put it, looking at the matter in the round. The authorities show that it will ordinarily be fair and just to hold the employer liable where the wrongful conduct may fairly and properly be regarded as done while acting in the ordinary course of the employee's employment (per Lord Nicholls). This is because an employer ought to be liable for a tort which can fairly be regarded as a reasonably incidental risk to the type of business being carried on (per Lord Steyn).
22. In these circumstances we would accept Mr Seaward's submission that it is not appropriate to ask a broader question, namely, whether in all the circumstances of the case it would be fair and just to hold the club liable. The critical factor is the nature of the employment and the closeness (or otherwise) of the connection between the employment and the tort. The question what is fair and reasonable must be answered in the context of the closeness or otherwise of that connection. The answer to the question in each case of course depends upon its particular facts."
Lord Justice Wilson:
Lord Justice Longmore: