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Third Party Debt Orders Ineffective

We were rather surprised recently to see a commercial law firm attempt to impose Third Party Debt Orders (“TPDOs”) both on an invoice financier and on debtors whose debts had been assigned to it, in each case in favour of a claimant who had secured a court judgment against the assignor.

TPDOs were formerly known as Garnishee orders, and are governed by Rule 72 of the Civil Procedure Rules which provides:

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Court of Appeal decision on Commercial Confidentiality in Proving Assignment

In a recent Briefing we commented on the case of Haydock Finance Limited v Starcruiser Bussing Limited [2021] EWHC 622 (Comm) in which we successfully represented a funder in defeating an unmeritorious challenge, backed up by the debtor’s “expert evidence,” to the technical aspects of an asset financier’s securitisation process: see https://www.bermans.co.uk/securitisation-and-the-right-to-sue/

We wondered whether this sort of challenge might spread across to invoice finance, so we were interested to see the Court of Appeal reject a series of technical challenges to the assignment process in the recent judgment in a series of cases reported at [2021] EWCA Civ 1682.

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Invoice Finance for Lawyers

The business of law has changed significantly over the last couple of decades, ranging from significant developments in terms of the structure and operation of commercial law firms servicing business clients, to the funding models of “ambulance chasing” litigation covering a wide range of claims from alleged financial mis-selling to simple road traffic accident claims.

It is some time since we examined the topic of invoice finance for lawyers in a Briefing, and we were reminded of its significance in a recent court judgement involving a claim by a funder against a solicitor’s insurer which would have been of great interest to the invoice finance industry had it succeeded.

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Restriction of proceedings orders

Adrian Fryer

Adrian Fryer

Employers dread the vexatious litigant. Even the most spurious of tribunal claims takes up valuable management time and incurs legal fees to defend. The judgment of the EAT in Attorney General v Taheri will be a salve to those employers who have previously had their fingers burned by a serial complainer. The EAT can make an RPO – an order restricting an employee’s right to bring tribunal proceedings – if the employee has habitually and persistently, and without reasonable grounds, brought vexatious proceedings in the employment tribunal (or EAT) against one or more employers. In Taheri, the EAT has shown that there is a limit to what the employment tribunal system is prepared to accept from a vexatious litigant.

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Agency workers

Adrian Fryer

Adrian Fryer

The Agency Workers Regulations 2010 (AWR) are derived from EU law. They aim to strike a balance between protecting agency workers and preserving the benefits of flexibility that using an agency provides to both businesses and workers. The AWR contain anti-discrimination provisions. Agency workers must be given the same basic terms and conditions of employment as direct recruits when they have worked for a hirer for 12 weeks. Regulation 13 gives agency workers the ‘day 1’ right to be told by the hirer about any relevant vacancies, with the aim of giving agency workers the same opportunity as direct recruits to find permanent employment within the business. The information can be given in a general announcement in a suitable place in the hirer’s business.

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Injury to feelings

Adrian Fryer

Adrian Fryer

If an employee wins their claim for discrimination they will be entitled to compensation. That compensation may include a payment for injury to feelings. A case called Vento v Chief Constable of West Yorkshire Police set guidelines for how injury to feelings awards should be calculated.

Cases will fall into three bands: the lower band is for less serious cases of discrimination including one off or isolated acts; the middle band is for serious cases which don’t merit a top band award and the top band for the most serious cases of discrimination including lengthy campaigns.

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Holiday pay

Adrian Fryer

Adrian Fryer

Regulation 14 of the Working Time Regulations 1998 (WTR) sets out a worker’s right to a minimum of 4 weeks’ paid holiday per year which derives originally from the Working Time Directive (WTD). In a case called Bear Scotland v Fulton, the EAT said that a three-month gap between related deductions in a series will break the chain, meaning anything before the three-month gap cannot be claimed. The Court of Appeal has recently confirmed in Smith v Pimlico Plumbers that a worker’s right to paid annual leave is a single composite right – to leave and to pay for that leave – and strongly challenged the principle set out in the Bear Scotland case.

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Victimisation

Adrian Fryer

Adrian Fryer

Victimisation is a word which is often used incorrectly. Victimisation is a particular kind of discrimination which occurs when an employer treats an employee badly (a detriment) because they have done a ‘protected act’ or the employer believes that they have done, or may do, a protected act. That protected act can include bringing a discrimination claim, raising allegations of discrimination, or being a witness in a discrimination claim. The EAT has looked at a case recently where the employment tribunal got things wrong in terms of what could constitute a ‘detriment’.

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Confidential information

Adrian Fryer

Adrian Fryer

Case law has shown that an employee’s right to privacy is not reduced to zero at work. Article 8 of the European Convention on Human Rights provides that everyone has the right to respect for their private and family life and correspondence. Any breach of that right can result in a misuse of confidential information claim. In Barbulescu v Romania, the employee was dismissed for personal internet use which was banned at work. The employer accessed private emails which the employee had sent to his fiancé and brother as well as his private Yahoo messages from his work computer. The ECtHR said the employee’s right to privacy had been infringed. It is a balance though. In the recent case of Brake v Guy, the Court of Appeal decided that an employer did not breach any privacy rights when accessing an employee’s personal emails.

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