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ARKORFUL V. STATE FISHING CORPORATION

Case

Jurisdiction

High Court

Judge

N/A

Catalog Type

Case

Judgement Date

Oct 27, 1987

Summary

Labour Law — Master and servant — Summary dismissal — Allegation of dishonesty and extortion — Disciplinary inquiry — Observance of rules of natural justice — Failure to afford employee opportunity to confront accusers — Wrongful dismissal — Measure of damages — Entitlement to salary lost by reason of wrongful dismissal — Damages for loss of promotion and loss of employment — Whether damages are recoverable for injured feelings, loss of reputation and difficulty in obtaining future employment. Facts The plaintiff was employed by the defendant corporation as Deputy Chief Security Officer (Investigations). While investigating the theft of 50 cartons of fish involving a customer, Mary Boateng, allegations were made before a disciplinary committee that the plaintiff had extorted money from her. The committee subsequently expanded its inquiry to investigate the plaintiff. Evidence was received from several persons, including Mary Boateng and other witnesses, in the plaintiff’s absence. The plaintiff was not afforded a proper opportunity to confront or cross-examine his accusers or to defend himself against the allegations. The committee nevertheless found the allegations established and recommended disciplinary action. Acting on the committee's report, the defendant summarily dismissed the plaintiff for dishonesty. The plaintiff brought an action claiming, inter alia, a declaration that his dismissal was wrongful and damages. Issues 1. Whether the disciplinary committee's inquiry complied with the rules of natural justice. 2. Whether the defendant was justified in summarily dismissing the plaintiff for dishonesty. 3. What was the proper measure of damages for wrongful dismissal. Held 1. The plaintiff's summary dismissal was wrongful. The disciplinary committee's investigation was fundamentally flawed and constituted a breach of the rules of natural justice, particularly the plaintiff's right to be heard and to challenge the evidence of his accusers. 2. The findings of the disciplinary committee could not support the dismissal. The committee relied on unreliable and conflicting allegations, received evidence in the plaintiff's absence, and improperly investigated alleged prior misconduct unrelated to the charge before it. Its report was therefore incapable of justifying the plaintiff's dismissal. 3. Although an employer may terminate a contract of employment upon proper notice, a summary dismissal founded on unproved allegations of dishonesty is wrongful. The defendant could have lawfully terminated the plaintiff's employment by giving the contractual notice but was not entitled to summarily dismiss him on the basis of a procedurally defective inquiry. 4. Damages for wrongful dismissal are generally measured by the salary and contractual benefits lost as a result of the dismissal. The plaintiff was entitled to lost salary from the date of interdiction to the date of judgment, salary in lieu of notice, end-of-service benefits, damages for prospective loss of promotion and loss of employment, interest and costs. 5. Damages are not recoverable for injured feelings, damage to reputation, or the increased difficulty of obtaining employment resulting from the dismissal. The rule in Addis v. Gramophone Co. Ltd. remained applicable.

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