Appeal Court.
15 Dec./1937.
Claim for
damages for wrongful
dismissal-What is quantum
of damage when offer of
re-employment following a breach
is made and refused
?-When Court will reverse
finding of fact.
Held: Such refusal must be
unreasonable to justify damages
being nominal Appeal from only;
Court may reverse finding of
fact when Lower Court has
misunderstood Judgment of
documentary evidence; Appeal
allowed but only by slight
reduction of damages. Divisional
Court.
There is no
need to set out the facts.
E. O. Asafu-Adjaye (E. P.
Asafu-Adjaye with him) for
Appellant.
T. Hutton-Ellis for
Respondent.
The
following judgment was delivered
:KINGDON, C.J., NIGERIA.
In. this case
the plaintiff, who is a German,
was engaged at Las Palmas by
defendant under an agreement
dated 22nd June, 1936, as
general engineer at the
defendant's tobacco
manufacturing works at Kumasi
for a term of three years. The
plaintiff duly took up his work
on the 14th August, 1936, and on
the 23rd April he was, as the
trial Judge found, wrongfully
dismissed by the defendant. He
sued for damages, claiming £514
95. 4d. as per the following
particulars:-
£ s.
d. £ s.
d.
(1) To
salary due him under the
Agreement dated 22nd June
1936, to 30th April, 1937,
at £120 per annum
.....................................
. |
85 6
8 |
(1a) Less
payment received on
a/c-£25 10s. Od.
|
25 10 0 |
Balance due on Item (1)
|
59 16 8 |
(lb)
To Balance due from 1st
May, 1937, to 3rd August,
1937 |
34 10 4 |
(2) To
salary due from 14th August,
1937, to 14thAugust, 1938 . |
160 0
0 |
(3) To
salary due from 14th August,
1938, to 14th August, 1939 |
200 0
0 |
(4) To
Food Allowance due him
from31st March, 1937, to
30th April1937, at 4s. per
diem £6, less £4 paid on
alc leaving a balance of
£2 |
2 0
0 |
(5) To
two (2) months' estimated
food allowance at 4s. per
diem until departure for Las
Palmas |
12 0
0 |
(6) To
1st Train fare and 3rd Class
steamer passage from Kumasi
to Las Palmas for himself
and Wife |
45 5
4 |
|
------------- |
|
£
514 9 4
|
|
--------------
|
The trial
Judge found for plaintiff and
awarded him £249 Os. 8d. damages
made up as follows :-
£ s. d.
Item (I) of Particulars of Claim
......... 57 10 0
Item (Ib), (2). and (3)
......................... 150 0
0
Item (4)
.......................................................
8 0
Item (5)
.....................................................
NIl.
Item (6)
.................................................
41 2 8
The defendant
has appealed to this Court
against the finding of the trial
Judge that he had broken the
contract and also against the
amount of the damages awarded.
The main ground of appeal is
that the finding in favour of
plaintiff that defendant
wrongfully dismissed the
plaintiff is against the weight
of evidence. As to this it is
sufficient to say that this
Court cannot reverse the finding
of the trial Judge who had the
advantage of seeing and hearing
the witnesses and so judging of
their credibility.
On the
question of damages the
appellant's main contention was
that damages should be merely
nominal, because a few days
after the dismissal defendant
offered to re-employ plaintiff,
an offer which plaintiff
refused. The appellant relied
upon the case of Brace v.
Calder 0- Others
(1895 2 Q.B.D., p. 253), in
which it was held that, where
the employment of a plaintiff by
a partnership of four members
came to an end owing to the
partnership being dissolved,
there was a technical breach of
agreement but, since the
business was continued by two
partners who offered the
plaintiff similar employment
which was refused, the damages
must be purely nominal. This
case is referred to in Chitty
on Contracts (18th edition,
p. 1956), in these words: "A
servant who has been wrongfully
dismissed and unreasonably
refuses to accept another
post to date from the dismissal
is only entitled to nominal
damages." I have italicised the
word " unreasonably" as I think
that therein lies the clue to
how the present case is to be
distinguished. It was
unreasonable to refuse
employment in the circumstances
of the Brace v. Calder
case, but is it unreasonable to
refuse an offer to be taken back
when the parties have quarrelled
and the employer has been guilty
of an actual and not merely
technical wrong? The question
must, I think, depend on the
facts of each case and is one
for the trial Court to
determine. It is significant
that Counsel for appellant was
unable to point to a single case
where refusal of re-employment
in such circumstances as the
present was held to be
unreasonable. In the present
case the trial Judge did not
find, and I am not prepared to
hold, that the plaintiff's
refusal of re-employment was
unreasonable. I think therefore
that the trial Judge was right
to award substantial and not
merely nominal damages.
Moreover, I see no reason to
quarrel with the basis of
assessment, vi~. a year's salary
having regard to the special
circumstances of this case,
namely the facts that plaintiff
is a stranger in a strange
country and may have difficulty
in returning to Las Palmas, the
place of his engagement, owing
to the Spanish civil war.
It remains to
consider the minor points as to
the amount of damages which were
raised on the appeal. Inter
alia, the Judge awarded a
sum in respect of the
plaintiff's wife's passage back
to Las Palmas. Respondent does
not try to support this, and it
is agreed'
that
item (6) of the award must be
reduced by £20 18s. 3d. in respect
thereof. The other disputed item
is No.1, £57 10s. Appellant
contends that this should be
reduced by £12 as, in calculating
it, £12 paid . in Las Palmas as an
advance of salary was not taken
into account Respondent says that
this £12 was handed over, not as
an advance of. salary, but as a
payment to cover the expenses of
staying one month in Las Palmas.
There is a direct conflict of
evidence here and the trial Judge
found in plaintiff's favour. But
this is one of the rare cases
where I feel compelled to differ
from the trial Judge and to over-
rule him on the facts, because the
entries at page 85 of the
defendant's ledger (Exhibit" E "),
in my view, demonstrate
conclusively the correctness of
the defendant's version and the
meaning and effect of these
entries was misunderstood by the
trial Judge. He says that the
credit side of that page " shows a
number of monthly payments of £10
as being due to the plaintiff,"
and holds that" although the
agreement was silent as to the
exact times of payment, monthly
payments had been agreed upon by
mutual consent."
What this page
of the ledger really does is to
record the running account as
between the parties. On the credit
side is entered month by month the
total amount earned by the
plaintiff by way of salary (not
amounts then due). On the debit
side are entered the amounts which
will ultimately have to be set off
against the total of the credit
side, i.e. the amounts drawn by
plaintiff under the express term
of the contract. "Employee may
draw up to one-half of the salary
earned, and the remaining will be
paid to him at the end of the
determined of the contract"
(sic). All the entries on the
debit side are initialled by the
plaintiff. The first item on the
debit side is £22, and it is
agreed that it includes the £12 in
dispute. This alone is strong
confirmation of the defendant's
case that the whole £22 was by way
of advance of salary, and this is
still further strengthened by the
significant fact that all
subsequent sums drawn are for less
than £5, thus indicating that
there had been an excessive amount
drawn which was being recovered,
until by the last entry on each
side the total debit is brought to
exactly one-half of the total
credit. I think that this
documentary evidence is conclusive
in favour of defendant's version
and that therefore item (1) of the
award should be reduced by £12.
For the reasons
given I am of opinion that the
appeal should be allowed to the
extent of ordering that the
judgment of the Court below be
varied by reducing the sum awarded
to the plaintiff from £249 Os. 8d.
to £216 2s. 5d., the order of the
Court below as to costs remaining
good. As to costs in this Court, I
am of opinion that, since on the
one hand the appellant has failed
in his main contentions whereas on
the other he had to bring this
appeal in order to secure the
reduction indicated, justice will
be met by leaving each party to
bear his own costs of appeal.
PETRIDES, c.J.,
Gold Coast.
I concur.
YATES, J.
I concur.
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