Council loses £1m damages claim
Updated on 15 June 2009
Cheltenham Borough Council has lost its claim for £1m damages from a top executive who did not disclose she had suffered from depression.
Cheltenham Borough Council claimed Christine Laird lied about her mental health problems in a medical questionnaire when she applied for the job of managing director in 2002.
The local authority claims that when Mrs Laird then left her job on an ill health pension after taking sick leave, this resulted in a substantial financial loss. The council attempted to sue her for "fraudulent or negligent misrepresentation", for not revealing she had suffered three bouts of depression since 1997.
But Mr Justice Hamblen dismissed the action and at the same time rejected a counterclaim for damages by Mrs Laird to reflect the value of the work she did for the council during her tenure. He said he did not think that Mrs Laird had lied so it was not fraud and that she did not mislead anyone. He indicated if anyone was to blame it was whoever wrote the "poorly drafted" questionaire she filled in.
He said:
"It is over eight years since Mrs Laird joined the council and much of the intervening period has been spent in bitter dispute before various tribunals at much personal and financial cost.
"I very much hope that a line can now finally be drawn, allowing Mrs Laird to get on with her life and the council to get on with the business of governing Cheltenham."
This is thought to be the first time an employer has attempted to sue an employee over statements on a medical questionnaire.
And employment lawyers monitored the case closely, as they believed it may have set a precedent for other employers to sue people for lying about their health, particularly if they have received lucrative ill health pensions.
Pre-employment medical questionnaires are confidential, but Cheltenham Borough Council went to court to force the Occupational Heath Service to release Christine Laird's questionnaire.
Where it asked, "Do you enjoy good health?" Mrs Laird wrote "Yes".
Where it asked, "Do you have any ongoing medical conditions which would affect your employment?" Mrs Laird said, "No".
Mrs Laird says she was not suffering depression at the time, and the job offer was unconditional.
The Disability Discrimination Act - which covers mental illnesses including depression - says employers have a legal duty to make ‘reasonable adjustments’ for their employees.
But in Christine Laird’s case, Cheltenham Borough Council argued it could not make adjustments for her depression, because the role of managing director was necessarily demanding and stressful.
And because Mrs Laird said on her medical questionnaire that she didn not have a disability, she had little legal protection.
Some employers, like BT and Barclays, have scrapped pre-employment medical questionnaires. But they are the exception.
The mental health charities Mind and Rethink are lobbying the government to introduce legislation banning pre-employment medical questionnaires. They are lobbying MPs to back an amendment to the equality bill currently going through parliament.
