H178 Wallace -v- Irish Aviation Authority [2012] IEHC 178 (18 May 2012)


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High Court of Ireland Decisions


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URL: http://www.bailii.org/ie/cases/IEHC/2012/H178.html
Cite as: [2012] IEHC 178

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Judgment Title: Wallace -v- Irish Aviation Authority

Neutral Citation: [2012] IEHC 178


High Court Record Number: 2012 4025 P

Date of Delivery: 18/05/2012

Court: High Court

Composition of Court:

Judgment by: Hogan J.

Status of Judgment: Approved




Neutral Citation Number [2012] IEHC 178

THE HIGH COURT
[2012 No. 4025P]




BETWEEN/

REGINA WALLACE
PLAINTIFF
AND

IRISH AVIATION AUTHORITY

RESPONDENT

JUDGMENT of Mr. Justice Hogan delivered on 18th May, 2012

1. The plaintiff, Ms. Regina Wallace, has been employed as an Aviation Officer with the Irish Aviation Authority (“the Authority”) since April 2003. The Authority is a commercial state sponsored company which provides aviation services within Irish airspace. It also regulates safety standards within the Irish civil aviation industry. Ms. Wallace is employed at the Authority’s training centre at Ballycasey, Shannon, Co. Clare. She is required to perform certain clerical and administrative functions to support the training functions in the training centre. There are apparently five other employees who work with Ms. Wallace in four offices which are side by side on the same floor of the building. Some twenty four students are located in classrooms immediately adjacent to these offices.

2. The plaintiff’s employment with the Authority has not been altogether without incident. She has found it necessary to make two complaints of bullying and harassment against two superior officers. One of those complaints was upheld and the other is presently under investigation. For its part, however, the Authority has been troubled by what Mr. Brendan Mulligan, Director of Human Resources, described in an affidavit as an “unprecedented level of absenteeism”, so that in her nine years of employment the plaintiff was absent on sick leave for some 759 days. The plaintiff had previously received written warnings regarding her attendance record. It was, however, her (allegedly unexplained) absence from work on 16th February, 2012, which set in train the events giving rise to this application for an interlocutory injunction.

3. A disciplinary hearing was convened to investigate this complaint. It seems to be common case that one of the persons against whom a bullying allegation had been made was present at the hearing which took place on 2nd April, 2012, along with the Authority’s Employee Relations Manager, Ms. Annemarie Ward. Perhaps not surprisingly the plaintiff’s solicitor objected to the presence of this other person given the nature of the outstanding complaint, but this objection was overruled. The hearing proceeded and it culminated with Ms. Ward informing the plaintiff that she was being dismissed, but that she could appeal within a three week period from that date, which the plaintiff duly did.

4. The plaintiff has appealed on a variety of grounds, including imputations of bias and pre-judgment, along with the contention that only the Board of the Authority could effect such a dismissal. Since this appeal is outstanding, it is important that I refrain from expressing any views whatever in relation to the grounds of appeal. It is sufficient for present purposes to observe that the appeal is outstanding and that the parties are confident that the appeal can be disposed of within the next few weeks.

5. This brings us directly to the matter at issue. The Authority proposes to place the plaintiff on administrative leave with full pay pending the outcome of the appeal. Ms. Wallace objects to this, saying that what is being proposed is a breach of contract and she seeks an interlocutory injunction which would restrain the Authority from taking this step. For completeness, I should say that the plaintiff originally apprehended that the Authority would take steps to effect that dismissal and to this end obtained an interim injunction in these terms from Laffoy J., on 23rd April, 2012. Matters have, however, now progressed to the point whereby the only issue before the Court is whether the Authority can place the plaintiff on administrative leave in the manner described pending the outcome of the appeal.

Alleged lack of candour
6. Before examining this issue, however, it is necessary to deal with the question of the alleged lack of candour on the part of Ms. Wallace in her grounding affidavit. It is trite law to say that a party seeking ex parte relief must be candid and forthcoming in her grounding affidavit. In some cases, any relief granted will be discharged where the failure to disclose is fundamental. Thus, for example, in AO v. Minister for Justice, Equality and Law Reform [2012] IEHC 1 I set aside the grant of leave to apply for judicial review where the applicant had failed to disclose the fact that he had previously applied ex parte for similar relief before another judge of this Court and had been refused.

7. In the course of my judgment I applied the test of objective materiality as set out by Clarke J. in Bambrick v. Copley [2005] IEHC 43. While I agreed (as had Clarke J.) that the failure to make disclosure did not automatically compel the Court to set aside the relief already granted, I concluded that the non-disclosure in that case was fundamental:-

      “…the non-disclosure here goes to the very heart of the order which the court made ex parte. The exercise of the set aside jurisdiction in a case such as the present one is not intended to be punitive although, of course, different considerations might well apply where a litigant acted mala fide. Nor is the jurisdiction to be exercised in a formalistic or mechanical fashion: it is rather essentially restitutionary in nature. In other words, by setting aside the original order the court is acting in the interests of two fundamental constitutional values, namely, the integrity of the administration of justice itself (as reflected in Article 34.1) and the importance of fair procedures (as reflected in Article 34.1 and Article 40.3.1).

      By thus setting aside the original order, the court thereby seeks to restore the status quo ante insofar as it is feasible to do so. This does not mean that the court cannot grant the applicant further relief (cf. the comments of Glidewell L.J. in Bowmaker Ltd. v. Britannia Arrow Holdings Ltd. [1988] 3 All E.R. 178). It does mean, however, that in the event that the court were to grant an applicant further injunctive relief, it would do so now afresh in circumstances where it has been armed with all the relevant facts and where it is not now operating under a misunderstanding or misapprehension as to those facts.”

8. If one applies these principles to the present case, the first question is whether there has been some material breach of the non-disclosure rule. For my part, I cannot discern that there was any non-disclosure of any materiality on the part of Ms. Wallace. It is true that - as one would expect - the Authority filed an affidavit with even more detail than that originally supplied by Ms. Wallace in her grounding affidavit. But I cannot see that there was any non-disclosure worth speaking of. Specifically, Ms. Wallace exhibited the letter of 27th April, 2011, where the Authority’s Head of Training had highlighted “three primary areas where your performance and behaviour continues to be unsatisfactory”, including excessive absence from work due to illness, punctuality and gross insubordination. No one reading that correspondence could be any illusions as to the case which the Authority might wish to make had it been represented before the Court at that juncture.

9. In these circumstances, I cannot see that the argument based on lack of candour has any real merit. Even if there was such non-disclosure in the past - which I fail to discern - it would relate only to the relief granted by Laffoy J. on the ex parte basis. For the reasons I gave in O., the set aside jurisdiction is not intended to be punitive, save, perhaps, where the non-disclosure was mala fide. Such non-disclosure as there might have been would have no real bearing on the issue presently before the court, namely, whether the Authority is now entitled to place the plaintiff on administrative leave and, specifically, whether she is entitled to seek and obtain interlocutory relief restraining this proposed course of action. It is to this issue to which we can now turn.

The nature of the contractual relationship between the parties
10. The starting point for any inquiry of this nature is, of course, the contractual relationship between the parties. It is agreed that a collective agreement described as the “Continuity of Service Agreement” (“the Agreement”) governs the employment relationship. The Agreement sets out the applicable disciplinary code governing that relationship. The Agreement states that an employee “has the right to appeal against any decision relating to himself or herself”. It is not in dispute but that Ms. Wallace has so appealed the dismissal decision.

11. The Agreement then continues by providing as follows:-

      “Appeals will be heard by an Authority Manager senior to the Manager who decided the outcome of the hearing of the appeal. Disciplinary action will not be taken pending the outcome of the appeal. At the appeal the employee may be accompanied by a staff representative. The outcome of the appeal will be notified to the employee in writing and if it is decided to take disciplinary action it will be implemented at this stage.” (emphasis supplied)
12. The meaning of the italicised words is at the heart of the present application for an interlocutory injunction. The key question, therefore, is whether the placing of Ms. Wallace on administrative leave pending the outcome of the appeal amounts to disciplinary action. There is, of course, a well recognised distinction between a suspension which is imposed (or, at least, de facto operates) as a form of disciplinary sanction on the one hand (see, e.g., McNamara v. South Western Area Health Board [2001] E.L.R. 317) and that which operates as a form of holding measure on the other, pending a fuller investigation of the complaints in questions (see, e.g., Deegan v. Minister for Finance [2000] E.L.R. 190 and Morgan v. Trinity College, Dublin [2003] 3 IR 157). The case-law to date has focussed on that distinction because, broadly speaking, the latter type of suspension does not attract the rules of fair procedures. As Kearns J. noted in Morgan, the question of whether a particular suspension is of such severity and with such implications for the reputation of the person affected such as would attract the rule of fair procedures is in every case a question of fact and degree.

13. In my view, however, this distinction - which was so comprehensively and fully analysed by Kearns J. in Morgan - has much lesser relevance in the context of this present case in view of the actual terms of the governing contract of employment. After all, the Agreement vouchsafes the employee that no “disciplinary action” will be taken pending the outcome of the appeal. This is broader than a guarantee that no disciplinary sanction will be so imposed. The entire tenor of these words - re-inforced by the context in which they appear - is that an employee has a contractual entitlement to remain in position pending the outcome of any appeal against a disciplinary decision.

14. I agree that in the present type of case a suspension on full pay pending an appeal might not be regarded as a disciplinary sanction. One might likewise plausibly contend that the proposed suspension by means of administrative leave on full pay would come within the Morgan category of a holding suspension not attracting the prior application of the rules of fair procedures, especially if the appeal was heard quickly. It is, however, unnecessary to express any view on this issue, because the real question before the Court is a more subtle one: would the placing of Ms. Wallace on administrative leave on full pay pending an (anticipated) early appeal amount to the taking of “disciplinary action” against her within the meaning of the relevant clause contained in the Agreement?

Application of Campus Oil principles
15. Applying standard Campus Oil principles, there is no doubt at all but that Ms. Wallace has established a fair question to be tried in relation to this issue. (In fact, for reasons I will later set out, her case is much stronger than this.) There is equally no doubt but that, if she is correct, damages would not be an adequate remedy because of the reputational damage which will inevitably attend any form of suspension from employment, even if the suspension is a purely “holding” form of suspension. Even in those cases of “holding” suspensions where the employee is ultimately vindicated following a full inquiry, the very fact of suspension is enough, in this valley of squinting windows, to expose the employee to the decidedly unpleasant prospect of calumny and detraction at the hands of the unforgiving and the uncharitable, not least during the period of suspension itself. As Laffoy J. noted in McLoughlin v. Setanta Insurance Services Ltd. [2011] IEHC 410, damages can never be an adequate remedy where (as here) there is a real prospect of reputational damage to the party seeking the injunction.

Whether the Campus Oil principles should be refined?
16. This leaves the question of the balance of convenience so far as the standard Campus Oil principles are concerned. A striking factor here is that the determination of this interlocutory injunction will effectively resolve the outcome of the main proceedings, since the main proceedings will be moot by the time the action could come on to full hearing. One must also acknowledge that the critical issue - namely, the construction of the words “disciplinary action” - are matters really of first impression, aided to some degree by an analysis of the case-law dealing with suspensions. All of this is to say that even if time permitted a full hearing, one must greatly doubt whether the judge of this Court hearing the full action would be really placed in any better position to determine this question than that in which I find presently find myself. The present case is thus very far removed from the classic form of interlocutory injunction which is designed to hold the balance of convenience pending the resolution of conflicts of facts (which in turn will depend on the giving of oral evidence at the full hearing) or the determination of “difficult questions of law which call for detailed argument and mature consideration”: see American Cyanamid v. Ethicon Ltd. [1975] A.C.396, 408, per Lord Diplock.

17. Counsel for the Authority, Mr. Connaughton SC, has stressed that if I were to grant the relief sought it would amount to the grant of a mandatory interlocutory injunction which would, furthermore, amount to the specific enforcement of a contract of employment. All of this would be manifestly inconvenient for the Authority, since the plaintiff would be returning to work in a small office in circumstances of some tension within the workplace. Naturally, the court will but rarely grant exceptional relief of this nature: see, e.g., the comments of Clarke J. in Becker v. St. Dominic’s Secondary [2005] 1 IR 561, 570.

18. It is, however, also necessary to look at the matter from the standpoint of plaintiff. If an injunction were to be refused by reason of the special factors which have just been mentioned, it would mean that she was denied the benefit of a key contractual protection just at the time when such protection was vitally necessary to protect her interests. Can it be the case that under such circumstances the court must shut its eyes to the underlying merits of the claim and helplessly wash its hands of the claim for interlocutory relief simply because to do so would involve the grant of mandatory relief at an interlocutory stage or because this would involve the specific enforcement of a contract of employment?

19. Here three separate - but in some respects, inter-locking - observations are called for. First, it cannot be the case that the Campus Oil principles are to be applied in some purely formalistic fashion, divorced from the underlying context. These principles were designed to ensure that the courts could best grapple with an application for interlocutory relief against a background of disputed facts and complex legal questions, the resolution of which would be determined in a more leisurely fashion at a later oral hearing. Quite independently of binding authority, these are principles which have been refined over the decades to ensure that the courts are best placed to achieve the fairest result at the interlocutory stage. Specifically, as Clarke J. pointed out in Allied Irish Banks plc v. Diamond [2011] IEHC 505, there are sound practical reasons for the fair question rule, for if the courts were generally required to go beyond this at interlocutory stage and strive for a detailed examination of the facts, they would be quickly overloaded with detailed arguments on the merits at this stage. This would in many cases convert the interlocutory hearing into the virtual equivalent of a form of a full hearing, thus defeating the very object of the exercise. But this does not mean that the Campus Oil principles must be unbendingly applied, without refinement, to a case such as the present one where the point at issue is a net one of construction, not calling for the elaborate argument, still less for oral evidence or the lengthy cross-examination of witnesses of the kind envisaged by Lord Diplock in American Cyanamid or by Griffin J. in Campus Oil.

20. Second, it must be recalled that the modern principles governing the grant of interlocutory injunctions were forged in the crucible of the modernisation of the Court of Chancery in 1850s and 1860s in the lead-up to the enactment of the Supreme Courts of Judicature Acts of 1873 for England and 1877 for Ireland. As Clarke J. noted in Diamond, the underlying object of these principles was to ensure that the court could, to the greatest degree possible, avoid doing an injustice in the absence of a full hearing. These principles were, however, designed to be flexible and to be capable of adaptation to the specific circumstances of the case at hand.

21. Third, the Supreme Court’s decision in Attorney General v. Lee [2000] 4 I.R. 298 demonstrates that the Campus Oil principles are not be applied rigidly or in some formalistic way in all possible types of cases, irrespective of the circumstances. Here the High Court granted the plaintiff an interlocutory injunction compelling the defendant to attend at an inquest in circumstances where she had contumeliously disregarded previous witnesses summonses. The Supreme Court allowed the appeal, ruling that the fact that the grant of an interlocutory injunction would finally dispose of the case was a hugely material consideration. In those circumstances, the Court considered that the plaintiff should establish his likelihood of ultimate success to a high standard and that it would have to be shown that the defendant’s presence was essential to the satisfactory conclusion of the inquest. As Keane C.J. noted ([2000] 4 I.R. 298, 305):-

      “In the present case, the High Court granted an interlocutory injunction directing the defendant to attend the adjourned hearing. However, although in form the order appealed from is an interlocutory injunction, it is obvious that, if upheld, it will finally dispose of the proceedings. It is, accordingly, not entirely logical to resolve the issue as to whether the interlocutory injunction should or should not have been granted by reference to the usual test, i.e. as to whether the plaintiff has established that there is a fair question to be tried. If it should emerge at the plenary hearing of the proceedings, that, while there was a fair question to be tried, the defendant was entitled to succeed, it is difficult to see how justice could be done to the defendant where the interlocutory order has effectively disposed of the entire case. That is a relevant consideration in the present case.” (emphasis supplied).
22. The Supreme Court has taken the same view with regard to the grant of mandatory interlocutory injunctions which would have the effect of specifically enforcing contracts of employment. As Fennelly J. observed in Maha Lingham v. Health Service Executive [2006] E.L.R. 137, 140:-
      “…it is well established that the ordinary test of a fair case to be tried is not sufficient to meet the first leg of the test for the grant of an interlocutory injunctions where the injunction sought is in effect mandatory. In such a case it is necessary for the applicant to show at least that he has a strong case that he is likely to succeed at the hearing of the action. So it is not sufficient for him to simply show a prima facie case, and, in particular, the courts have been slow to grant interlocutory injunctions to enforce contracts of employment.”
23. This Court has also recognised that there may be other limited categories of special types of cases where the Campus Oil principles must suffer some modest qualification. As Clarke J. recognised in Diamond, so-called “springboard” injunctions (i.e., cases where an employer contends that an employee seeks to appropriate confidential information acquired during the course of employment for personal gain) are one such special category, since if injunctive relief is to be of any value to a wronged plaintiff, it is of the essence in such cases that the potentially misappropriated information is delivered up immediately and not simply at the end of a full hearing some months (or even years) later.

24. I had taken a similar view in Albion Properties Ltd. v. Moonblast Ltd. [2011] IEHC 107. This was a case where a landlord sought an interlocutory injunction requiring a defaulting tenant immediately to yield up possession. Although the tenant argued that it would be inappropriate to grant such relief at interlocutory stage, I rejected that argument, saying:-

      “It is true that the courts are very reluctant to grant a mandatory interlocutory injunction, save in the clearest of cases: see, e.g., the judgment of Keane C.J. in Attorney General v. Lee [2000] IESC 80, [2000] 4 IR 68. Because the effect of such relief is generally to disturb the status quo ante, the granting of such an order is properly regarded as exceptional. It would normally not be granted unless it was more or less inevitable that the plaintiff would succeed at the trial of the action or, at least, where a strong prima facie case had been made out: see, e.g., ICC Bank plc v. Verling [1995] 1 I.L.R.M. 123 at 130, per Lynch J.. In addition, the balance of convenience would have to favour the grant of such exceptional relief. In this respect, the test for relief is higher and more exacting than that which obtains under the conventional Campus Oil criteria (Campus Oil Ltd. v. Minister for Industry and Commerce (No.2) [1983] I.R. 88). In my view, however, this is such an exceptional case for reasons I will shortly set out….

      This Court enjoys a general jurisdiction to grant an injunction whenever it is just and convenient to do so: see s. 27(7) of the Supreme Court of Judicature (Ireland) Act 1877, as applied to this Court by s. 48 of the Courts (Supplemental Provisions) Act 1961. In this regard, I entirely agree with the submission of counsel for Albion Properties, Mr. Gibbons, that it would be pointless to require his client to issue separate plenary proceedings before an interlocutory injunction of this kind could either be sought or granted. A requirement of this kind would simply represent legal formalism at its worst. Any supposed jurisdictional bar which prevented the court from granting injunctive relief in an appropriate case to require a defaulting tenant to yield up possession of a commercial tenancy would be at odds with duty imposed on the courts by Article 40.3.2 of the Constitution to ensure that the property rights of the plaintiff landlord are appropriately vindicated in the case of injustice done. The courts are under a clear constitutional duty to ensure that the remedies available to protect and vindicate these rights are real and effective: see, e.g., the comments of Kingsmill Moore J. in The State (Vozza) v. O’Floinn [1957] I.R. 227 at 250; those of Murray C.J. in Meadows v. Minister for Justice, Equality and Law Reform [2012] IESC 3 and the authorities set out in my own judgment in S v. Minister for Justice, Equality and Law Reform [2011] IEHC 31.”

25. If one applies these principles to the present case, it seems to me that, given that the interlocutory application will finally determine the substantive issue, it is permissible – not least in the light of the comments of Keane C.J. in Lee - to take account of that fact in determining the approach to be taken to the question of interlocutory relief. Moreover, if the courts were de facto debarred from giving interlocutory relief in employment cases merely because it involved the specific enforcement by means of mandatory interlocutory injunction of clauses contained in a contract of employment designed for the protection of employees, this would amount to a denial of effective access to this Court (as guaranteed by Article 34.3.1 and Article 40.3.1) and a breach of the Court’s duty (as imposed by Article 40.3.2) to fashion a real (and not simply theoretical) remedy which would vindicate the infringement of a property right (namely, the breach of a contract of employment) which would otherwise have taken place for all the reason set out by me in Albion Properties.

26. It is true that the courts will not readily grant relief where the effect of this will be specifically to enforce a contract of employment. This is the case a fortiori where the relief sought is merely interlocutory in nature. But, as Fennelly J. tacitly recognised in Maha Lingham, the grant of such relief cannot be excluded in principle on some ex ante basis.

27. In any event, the standard objection to the grant of such relief in employment cases - namely, that it would involve the court in on-going supervision of the employment relationship – does not apply here. The only question in the present case is whether the plaintiff should be allowed to work pending the appeal, so the question of recurring supervision of employment performance and practice is not in question

28. If one then proceeds to apply these principles to the present case, it seems to me that the plaintiff has very strong grounds for contending that the requirement that she be placed on administrative leave is a form of “disciplinary action” within the meaning of the applicable contractual term, even if the fact that she would remain on full pay and that the suspension was likely to be of short duration might mean that it was a form of suspension which otherwise came within the Morgan principles. As I have endeavoured to point out, the entire tenor of the contractual clause is that the employee who appeals is entitled to remain in position pending the outcome of that appeal. Certainly, in the light of the language actually used (“Disciplinary action will not be taken pending the outcome of the appeal”), if the Authority nonetheless enjoyed a power to place an employee on administrative leave pending an appeal one would have expected that this would have been expressly stated.

29. Naturally, I accept that, from the Authority’s point of view, the enforcement of that contractual obligation is likely to prove awkward and inconvenient. Ms. Wallace’s duties may fairly be described, however, as being routine in nature. Very different considerations might well obtain if, for example, she occupied a senior management position where trust had irrevocably broken down between the parties.

30. But it would be unfair to Ms. Wallace if the Authority were to be allowed to resile from what would appear to be its contractual obligation simply because the unyielding application of specialist sub-rules relating to the grant of interlocutory injunctions in employment cases (such as a traditional unwillingness to refuse to countenance the grant of mandatory interlocutory injunctions specifically enforcing aspects of a contract of employment) rendered it effectively unforceable just at the time when that guarantee might be of the most value to her. In those circumstances, the courts would have failed in their constitutional duty to vindicate these contractual obligations by providing real and effective relief to remedy the injustice done which would then have been done to her.

31. It was, after all, the Authority which decided to agree to give its employees the express contractual commitment that they would remain in situ pending an appeal against an adverse disciplinary decision. The Authority can hardly feign surprise or look askance if this Court merely holds it to its own word.

32. All of this is another way of saying that in a case such as the present one where the grant or refusal of the interlocutory relief would effectively determine the main proceedings, the court is permitted, by way of modest derogation from the Campus Oil principles, to look to the underlying strength of the respective positions of the parties in the manner indicated by the Supreme Court in Lee. If, as here, the plaintiff’s case appears particularly strong, it is only just and equitable that she be granted the interlocutory relief which she seeks, not least where (as here) the point is a net one of construction, not dependent on oral evidence or elaborate argument, and where damages would not be an inadequate remedy.

Conclusions
33. It is for these reasons and having regard to the very special circumstances of this case that I propose to grant the plaintiff an interlocutory injunction restraining the Authority from placing her on administrative leave pending the outcome of her appeal against the disciplinary decision of 2nd April, 2012.


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