“4. Compensation for injury to feelings is awarded in “whistle blowing” cases on the same basis as for cases of “very serious breach” of the discrimination legislation ( Virgo Fidelis Senior School v Boyle[2004] IRLR 268 ). The claimant submitted that such a breach “would normally mean” an award in the top band of compensation set out in the guidance in Vento v Chief Constable of West Yorkshire Police (No 2)[2003] IRLR 102 . 5 However, in Vento it was said that awards in the top band should be for the “most” serious cases, such as where there has been a lengthy campaign of discriminatory harassment against the claimant. No such campaign was waged against this claimant, although the respondent took some eight months to clear him of the unwarranted disciplinary matters, and that time was certainly very stressful for him. Yet, as we found, the claimant expected to be exonerated in due course, because he was confident he had not offended as charged, and thus he did not resign when served with form 163. In the tribunal’s view this was not a “most serious” case, and the tribunal did not take Virgo to mean that every “very serious” case should attract an award in the top band. 6 When the tribunal considered what would be just and equitable compensation for the injury to the claimant’s feelings, we took into account the following: 6.1 The information provided by DI Williams to the DPS, and which formed the basis of the false charges set out in form 163 was, to the claimant’s knowledge, false. 6.2 The claimant’s complaint about DI Williams was never, in the claimant’s view, properly dealt with, in that Mr Williams did not lose his posting to the PCeU, although he had cheated in the selection process, whilst the claimant did lose his posting to the unit. 6.3 It was Mr Williams who effected the claimant’s removal from the PCeU, which “added insult to injury”. 6.4 The claimant’s removal from the PCeU represented a loss to the claimant of status and reputation. 7 The tribunal concluded that the right award would be at the top end of the middle Vento band. We accordingly awarded the claimant£17,000 for the injury to his feelings.”
“ Aggravated damages 8 No one reading the tribunal’s reasons for our decision on the merits could understand otherwise than that we found DI Williams and DSU McMurdie had colluded against the claimant, had indeed “ganged up” on him for an unlawful reason, and by dishonest means had ensured his immediate removal from the PCeU. The reader would understand that we found DCS Mawer had turned a blind eye to the machinations of Mr Williams and Ms McMurdie without once considering whether or not what was being done to the claimant was warranted. The reasons made clear furthermore that we found he may have tampered with documentary evidence, and then “recollected” in oral evidence to the tribunal an explanation we rejected. 9 Aggravated damages are awarded, in addition to the award for injury to feelings, where the respondent has acted in a high-handed, malicious, insulting or oppressive manner in committing the unlawful act(s) that caused detriment to the claimant. The tribunal concluded that this was such a case and that the malicious and high-handed aspects of the respondent’s treatment of the claimant were not reflected in the award we made for the injury to his feelings. Accordingly, we took those aspects into account when determining the award, and ensured there would not be double compensation for the same wrong. We considered there was some distinction, although not at all precise, between the conduct which was oppressive and conduct which was high-handed. 10 The tribunal took the following aspects of the officers’ conduct to be oppressive: 10.1 The instigation of unwarranted disciplinary proceedings against the claimant; 10.2 Mr William’s and Ms McMurdie’s collusion against the claimant with unlawful intent; 10.3 The unwarranted haste with which Mr Williams and Ms McMurdie acted against the claimant; 10.4 Ms McMurdie’s failure to tell the claimant on27 October 2008 that he was to be served with a form 163, although she knew it to be the case. She thus knowingly denied him the opportunity to take advice from the Police Federation, and to consider carefully and set out fully his reply to caution; 10.5 The unwarranted manner in which Mr Williams removed the claimant from the PCeU. 11 We took the following aspects of the officers’ conduct to be high-handed: 11.1 The failure of the respondent to offer an apology to the claimant for the unlawful acts of Ms McMurdie and Mr Williams; 11.2 DCS Mawer’s wholly indifferent attitude and approach to Mr Williams’s and McMurdie’s actions against the claimant; 11.3 Mr Williams’s breach of the Standard Operating Procedures, and in particular Mr Mawer’s disregard of the breaches as “not uncommon”; 11.4 Mr Williams’s failure to examine the Company House accounts of the claimant’s business in the circumstances found by the tribunal; 11.5 Mr Williams’s unlawful search of the claimant’s desk after he escorted the claimant out of the building. 12 The tribunal considered the wrongful acts set out above to be significantly more serious than those that caused injury to the claimant’s feelings. We took into account in particular that the oppressive and high-handed acts were those of police officers. In our view police officers, working in a hierarchical structure in which honesty and integrity are expressly the foundation stone, must always conduct themselves, and be seen always to conduct themselves, in accordance with their obligations to be honest and to act with integrity. Here Ms McMurdie, a very high-ranking officer, and Mr Williams, contrary to their obligations, knowingly did wrongful acts calculated to damage or even destroy the career of an upright and dedicated colleague. 13 We concluded that it was just and equitable to award the claimant£20,000 as aggravated damages.”
“ Exemplary/punitive damages 14 Exemplary damages may be awarded in “the very worst cases” of oppressive, arbitrary or unconstitutional use of power by servants of government, where the compensations awarded is insufficient to punish the respondent for its conduct against the claimant ( Ministry of Defence v Fletcher[2010] IRLR 25 ). Such damages are punitive, not compensatory, and are intended to deter (ibid). 15 The tribunal’s view was that this case was not such as defined in Fletcher . 16 Here, the claimant was exonerated through the disciplinary process. He is still a Detective Sergeant, and his pay and pension were unaffected by the events in issue in the case. He is due to retire in two years, when he can begin to undertake his business interest if he wants to do so. 17 Next year the claimant will be rotated to a borough police station in accordance with a force-wide policy of periodically rotating Detective Constables and Detective Sergeants, and the claimant feels he will thus ‘… end up back where I started’. He was not able to say, however, that he would not have been rotated if he had remained in the PCeU. We could not find that his rotation to a police station was a consequence of the respondent’s unlawful acts against him. In any event, although his posting to the unit was expressly for three years, yet at any time he could have been posted elsewhere upon a direction by the Commissioner.” 12. Paragraphs 21-24 deal with the Claimant’s claim for costs. They are immaterial for the purposes of this appeal. THE LAW INTRODUCTORY 13. We should start with a preliminary point. In Virgo Fidelis Senior School v Boyle[2004] ICR 1210 this Tribunal (Judge Ansell presiding) held that the approach to the award of compensation for unlawful detriment under Part IVA of the 1996 Act should be the same as is applied in cases of unlawful discrimination, notwithstanding the differences in the relevant statutory provisions: see paras. 43-45 (pp. 1222-5). The subjecting of the claimant to the detriment is to be treated as a statutory tort, attracting an entitlement to compensation for so-called “injury to feelings” and, in an appropriate case, aggravated damages. It was not contended before us that Virgo Fidelis was wrongly decided on this point, and we are content to follow it. [3] We will henceforth for convenience use the term “discrimination” to cover cases both of discrimination stricto sensu and of detriment such as that with which we are concerned here. 14. The issue in the present appeal concerns the award of aggravated damages. Although such awards are a commonplace in discrimination claims, their conceptual basis, and their relationship with the award for injury to feelings which is invariably also made, is not straightforward, and we think it desirable to re-state some points of principle. HISTORY 15. The origins of the concept of “aggravated damages” as a distinct head of compensation lie in the English common law. It is debatable how valuable a part of the law it has been, but it is a fact of legal history. There is no such concept in Scots law – a point which is not without significance and to which we return below. The meaning and function of aggravated damages are helpfully discussed in Part II of the Law Commission Report (no. 247) on Aggravated, Exemplary and Restitutionary Damages (for which Professor Andrew Burrows QC was principally responsible): this represents the clearest and most comprehensive guide to the law up to 1997 and is a surer resort than simply going to the old authorities when confronted with a difficult point. [4] At para. 1.1 of Part II of the Report the Commission says: “Although the precise meaning and function of aggravated damages is unclear, the best view, in accordance with Lord Devlin's authoritative analysis in Rookes v Barnard[1964] AC 1129 , appears to be that they are damages awarded for a tort as compensation for the plaintiff's mental distress, where the manner in which the defendant has committed the tort, or his motives in so doing, or his conduct subsequent to the tort, has upset or outraged the plaintiff. Such conduct or motive aggravates the injury done to the plaintiff, and therefore warrants a greater or additional compensatory sum. Unfortunately, there is a continuing confusion in the case law, reflected in some of the substantive and procedural preconditions of an award of aggravated damages, about whether they in fact serve a different function, which is punitive in nature." 16. We draw attention to three features of that summary, based as it is on Lord Devlin’s analysis in Rookes v Barnard :- (1) Aggravated damages are compensatory in nature and not punitive. (2) The features that may attract an award of aggravated damages can be classified under three heads - (a) the manner in which the defendant has committed the tort; (b) the motive for it; and (c) the defendant’s conduct subsequent to the tort but in relation to it. (3) The features enumerated at (2) above affect the award of compensation because they aggravate the distress caused by the actual wrongful act. 17. The Report goes on to point out that Lord Devlin’s statement of the law in Rookes v Barnard represented an attempt to impose order on a mass of previous authority which had not clearly recognised the distinction between awards of aggravated damages in the sense explained by him and awards with a punitive element; and, as already trailed in para. 1.1 quoted above, that some confusion persisted in the case-law. 18. Turning to the employment law context, once it was recognised that cases of discrimination should be treated for the purpose of compensation as statutory torts, it was natural for practitioners to seek, and tribunals to award, awards of aggravated damages in cases which met the criteria for such an award at common law. The point was taken for granted in two early cases under, respectively, theRace Relations Act 1976 and theSex Discrimination Act 1975 – Alexander v Home Office[1988] ICR 685 and Noone v North West Thames Regional Health Authority[1988] ICR 813 ; but it was decided as a matter of ratio by this Tribunal, Smith J. presiding, in Prison Service v Johnson[1997] ICR 275 (more often referred to as Armitage v Johnson , under which name it is reported at[1997] IRLR 162 ) – see at pp. 285-7. Awards of aggravated damages have been made in very many cases since then in the employment tribunals in England and Wales, and treated as uncontroversial in principle by this Tribunal and the Court of Appeal (though not without dissentient voices – see below). However this Tribunal sitting in Scotland has ruled that awards of aggravated damages should not be made by Scottish employment tribunals. Lord Johnston put the point with characteristic brevity at para. 11 of his judgment in D. Watt (Shetland) Ltd. v Reid (EAT/424/01 ): “On the other hand, the award for aggravated damages is inappropriate inasmuch that it is inept by the law of Scotland. Damages for injury to feelings can include an element which reflects the way the victim was treated but [it] cannot be a separate head of damage. This position is clearly supported by the authorities.”
“That there can be a penal element in the award of aggravated damages is referred to in the Law Commission Report Aggravated, Exemplary and Restitutionary Damages (1993) (Consultation Paper No. 132) para. 2.17 et seq mentioned in Thompson and Hsu v Commissioner of Police of the Metropolis[1998] QB 498 at p. 512D .”
“... aggravated damages are awarded only on the basis, and to the extent, that the aggravating features have increased the impact of the discriminatory act or conduct on the applicant and thus the injury to his or her feelings ...” (see Salmon (above), loc. cit. , summarising the effect of McConnell and Tchoula and also unwittingly echoing the Law Commission’s summary). Keith J. recently made the same point in Wardle v Credit Agricole (UKEAT 0535/09), at para. 36 [6] . Aggravated damages are thus not, conceptually, a different creature from “injury to feelings” [7] : rather, they refer to the aggravation – etymologically, the making more serious – of the injury to feelings caused by the wrongful act as a result of some additional element. Indeed if this were not so, the fact that Scots law does not recognise aggravated damages as such would mean that substantially different remedies were available in identical cases north and south of the border, which is a state of affairs to be avoided if at all possible. As it is, however, as Judge Clark observed in Tchoula , loc . cit ., whether a tribunal makes a single award for injury to feelings, reflecting any aggravating features, or splits out aggravated damages as a separate head should be a matter of form rather than substance. 22. Criteria. The circumstances attracting an award of aggravated damages fall into the three categories helpfully identified by the Law Commission: see para. 16 (2) above. Reviewing them briefly: (a) The manner in which the wrong was committed . The basic concept here is of course that the distress caused by an act of discrimination may be made worse by it being done in an exceptionally upsetting way. In this context the phrase “high-handed, malicious, insulting or oppressive” is often referred to (as it was by the Tribunal in this case). It derives from the speech of Lord Reid in Broome v Cassell & Co. Ltd.[1972] AC 1027 (see at p. 1087G), though it has it roots in earlier authorities. It is there used to describe conduct which would justify a jury in a defamation case in making an award at “the top of the bracket”
“The award must be fair and reasonable, fairness being gauged by earlier decisions; but the award must also of necessity be arbitrary or conventional.”
“[The tribunal] awarded£10,000 'for injury to feelings' and then added a further separate sum of£2,500 'by way of aggravated damages'. The conclusion which must be drawn from this sentence is that there has been duplication in the assessment of compensation. What a tribunal ought to do in such cases is to weigh the evidence and form a view as to the level of distress and humiliation caused by the act or acts of discrimination, having regard to all the circumstances of the case. These circumstances will include any features which may have had the effect of aggravating the sense of injury felt by the complainant. The final result of this assessment will be a single figure reflecting the total injury to his feelings, which may in appropriate cases include an element of aggravation.”
“However caused, injury to feelings is to be compensated as a single head of damages. To award damages under different heading risks duplication of damages, or the introduction of an element of exemplary damages.”
“I turn to the question of aggravated damages. I should preface my comments on this aspect by saying that I have some concern about how the concept of aggravated damages, as distinct from exemplary or punitive damages, is applied in discrimination cases where damages are already being awarded for injury to feelings. I say that because aggravated damages are essentially compensatory in nature. They are intended to compensate a claimant for the injury he has suffered, albeit on a more generous basis (see Lord Hailsham of St Marylebone, L.C. in Broome v Cassell & Co[1972] AC 1027 at 1073 C-D). Such injury includes injury to feelings, and a tribunal therefore must be careful to avoid double counting in any award when a separate award for injury to feelings has been made. I have some sympathy with the views expressed by the Northern Ireland Court of Appeal to this effect in McConnell v Police Authority for Northern Ireland[1997] IRLR 625 at 629 para 19. Nonetheless, it is clear from the decision of this court in Alexander v Home Office[1988] IRLR 190 at 193 that it is open to a tribunal in a discrimination case to include in an award an element of aggravated damages where the party found guilty of discrimination has behaved in a "high-handed, malicious, insulting or oppressive manner." More recently, in Martins v Choudhary[2008] 1 WLR 617 , an appeal from the decision of a County Court Judge in a harassment case, Smith LJ said, at para. 20 (p. 624): “As I have already observed, the judge did not make separate awards for injury to feelings and aggravated damages. No ground of appeal arises from that and I wish to say that I think she was right not to do so. It seems to me that, in the context of a case of this kind (and for that matter in a discrimination case) where damages fall to be awarded for injury to feelings, the quantum of damage should reflect the aggravating features of the defendant's conduct as they have affected the claimant. As 'aggravated damages' are supposed to be compensatory, that seems to me to be the most satisfactory way of dealing with them. If a separate award of 'aggravated damages' is made, it looks like a punishment; in other words it looks like exemplary damages. I appreciate that differing views have been expressed on this issue in this Court. I have expressed my view and, in the context of this appeal, it is obiter.” (This seems to be the way the law is moving in relation to the common law torts too: see Richardson v Howie[2004] EWCA 1127 , per Thomas LJ at paras. 15-25.) 27. However, tempting though it is to follow the path already trodden in Scotland, and favoured by the Court of Appeal of Northern Ireland and by Keene and Smith LJJ in this jurisdiction, we do not believe that that course is open to us. Although we are aware of no case where the question has been addressed head-on, separate awards of aggravated damages have been approved by the Court of Appeal too often in recent years for us now to say that they represent the wrong approach [12] . A particular reason why it would now be difficult to row back is that the so-called “ Vento guidelines”, which have acquired almost Mosaic status, are framed by reference to “ordinary” injury to feelings, with “aggravated damages” falling to be awarded on top. This does not, as we understand it, reflect a considered decision by the Court in that case that aggravated damages ought, or ought always, to be so treated [13] : the point was not argued, and in fact the general trend of the judgment of the Court, given by Mummery LJ, is to emphasise the importance of considering the award for non-pecuniary loss as a total – see in particular the approach taken in para. 63 (p. 335 B-C) and the guidance given at para. 68 (pp. 335-6). Rather, it simply reflects the fact that in that particular case the employment tribunal had made a separate award of aggravated damages. Nevertheless, the application of the Vento guidelines would become less straightforward if we were now to encourage tribunals to abandon the practice of putting any sufficiently serious aggravating features in a separate box. That does not seem to us an insuperable obstacle, but it reinforces our view that any change of approach in this area should be made at a higher level than ours. 28. We will not, therefore, ourselves try to prescribe a change in practice in the English tribunals – though we repeat that the difference between the English and Scottish practice seems to us to be one of form rather than substance. However, it would be a healthy reminder of the real nature of aggravated damages if any such awards were in future formulated as a sub-heading of “injury to feelings” – i.e. “injury to feelings in the sum of £X, incorporating aggravated damages in the sum of £Y” – rather than as a wholly distinct head: this may reduce the risk of the tribunal being seduced into introducing a punitive element by the back door. More generally, tribunals should pay careful attention to the principles which we have endeavoured to set out above. Ultimately the most important thing is that they identify the main considerations which have led them to make the overall award for injury to feelings, specifying any aggravating or mitigating features to which they attach particular weight. As long as this is done they should not lose sleep over exactly where the dividing line falls between the award for (“ordinary”) injury to feelings and the award of aggravated damages (and the award for psychiatric injury where one is made). What matters is whether the total award for non-pecuniary loss is fair and proportionate: see Vento ( loc. cit ). THE APPEAL 29. The Commissioner, as we have said, focuses his challenge on the award of aggravated damages. Mr Cheetham provided us with a table, derived from the helpful list of reported awards in discrimination cases at the back of section L of Harvey on Industrial Relations and Employment Law, which showed that out of 25 cases in which aggravated damages had been awarded there were only two where the employment tribunal had awarded as much as£20,000 . [14] Of those, one was reduced on appeal to£8,000 (this was Fletcher ), and the other ( Scanlon v Redcar & Cleveland Borough Council , a decision of a tribunal sitting in Newcastle) seems from the brief report that we were shown to have had some oddities in its reasoning [15] . No other award was of more than£10,000 , save for one of£15,000 ( Vento ) which was reduced on appeal to£5,000 . The large majority of awards were in the range£5,000 -£7,500 . Even allowing, as we must, for inflation in relation to the less recent of those cases [16] , this analysis vividly illustrates the exceptional nature of the award made in the present case. Mr Cheetham pointed out that it is exceptional in another respect also, namely that it is the only reported case, apart from Scanlon , where the amount awarded by way of aggravated damages exceeds the award for “ordinary” injury to feelings: typically the former is less than half the amount of the latter. He accepted that it was theoretically possible that the injury caused by the aggravating features could be greater than that caused by the act of discrimination itself, but he submitted that that would in practice be very unusual. 30. This kind of comparative exercise has to be treated with some caution. Every case depends on its own facts, and the particular difficulty of distinguishing between the core injury and that attributable to the aggravating features means that it is necessary to consider the latter in the context of the former: two tribunals might draw the line very differently, and it is, as we have already emphasised, ultimately the total award that has to be assessed. But, even making those allowances, it is in our view clear that the award of£20,000 by way of aggravated damages in the present case was wholly excessive. We consider below what particular features of the case might properly be regarded as aggravating; but however they are assessed they do not come close to justifying an award so far out of line with the conventional scale. Having reached that conclusion, it is perhaps unnecessary for us to try to identify the particular errors in the Tribunal’s reasoning which may be responsible for the error. However, we will briefly comment on the approach in paragraphs 9-12 of the Reasons. 31. We should say by way of preliminary that the exercise which the Tribunal performed in paragraphs 10 and 11 of seeking to distinguish between which aspects of the Appellant’s conduct were “oppressive” and which were “high-handed” was unnecessary and indeed, with respect, inappropriate. As we say at paragraph 22 (1) above, the time-honoured phrase which the Tribunal was seeking to apply should not be taken as the definitive guide to the circumstances in which aggravated damages fall to be awarded, and it should in any event not be treated as if it were a statutory definition. But that would not matter as long as the features in question did in fact justify the amount of aggravated damages awarded, and the Tribunal should at least be commended for taking the trouble to set out carefully what factors it relied on. However, there are more pertinent criticisms, specifically: (1) Although the Tribunal correctly directed itself, at paragraphs 9 and 12, that the features on which it relied in making its award of aggravated damages should not overlap with those which were compensated in its award for injury to feelings, some at least of the features identified would appear to be plainly part of the complaint itself rather than constituting something exceptional in the manner of the act or the Appellant’s motivation. The plainest example is item 10.1, “the instigation of unwarranted disciplinary proceedings” – which is the very detriment complained of; but the same point could be made about 10.2 and arguably several of the other items. It does not follow that the Tribunal was necessarily guilty of double-counting: maybe it simply put some items into the wrong box. But it is impossible to be confident about its analysis. (2) Some of the items do not appear to be matters of which the Claimant would have been aware at the time and accordingly it is hard to see how they could have aggravated his distress – for example, items 11.4 and 11.5. (3) The Tribunal in the first sentence of paragraph 12 expressly distinguishes between “injury to feelings” on the one hand and the award of aggravated damages for “high-handed and oppressive” conduct on the other. That is a false distinction: see paragraph 21 above. This could just be a piece of loose wording, but the second half of the paragraph reinforces the suspicion that the Tribunal was in fact making its award to reflect not the aggravation of the injury to the Claimant’s feelings by the conduct in question but the seriousness of the conduct in itself: the message is “police officers should not act in this way”