Privy Council reinstates exemplary damages in Antigua transport dismissal case

The Privy Council's decision in Antigua and Barbuda Transport Board v Anderson Carty provides crucial guidance on exemplary damages in unfair dismissal cases, establishing important precedents for industrial relations law across Caribbean jurisdictions.

Background and procedural history

Anderson Carty commenced employment with the Antigua and Barbuda Transport Board in April 2006, serving in various managerial capacities before his appointment as Operations Manager under a three-year contract expiring in April 2015. The circumstances of his dismissal in October 2014 would prove central to the subsequent litigation.

Whilst Carty was on approved vacation leave, the Transport Board implemented organisational restructuring due to financial constraints, issuing relevant memoranda which failed to reach him. Upon returning on 15 October 2014, Carty discovered his dismissal had been effected without prior notice and communicated publicly before official confirmation. He subsequently filed a complaint with the Industrial Court, contending the dismissal was politically motivated and failed to satisfy legitimate redundancy criteria.

Industrial Court decision

On 28 August 2020, the Industrial Court found in Carty's favour, determining the dismissal to be unfair and awarding exemplary damages of $25,000 plus costs of $2,500. The court identified several factors justifying exemplary damages, particularly the harsh manner of dismissal and the treatment afforded to Carty throughout the process.

The Transport Board's appeal to the Court of Appeal resulted in a split decision. Whilst the court upheld the finding of unfair dismissal, it set aside both the exemplary damages award and costs order, concluding that insufficient basis existed for such awards. The Court of Appeal determined that although Carty's treatment was harsh, it did not constitute conduct properly characterised as "oppressive or arbitrary."

Privy Council analysis

The Privy Council granted Carty permission to appeal, addressing two principal issues: whether the Court of Appeal erred in removing the exemplary damages award and whether the costs order should have been maintained.

The Board concluded that the Court of Appeal had indeed erred by imposing additional requirements not warranted by the relevant statutory provisions governing exemplary damages. Significantly, the Privy Council affirmed that the Industrial Court possessed authority to award exemplary damages based upon findings of harsh treatment during dismissal proceedings.

The judgement established that the Industrial Court's assessment regarding whether dismissal occurred in harsh or oppressive circumstances represents a key determination that should not ordinarily be disturbed on appeal. This deference to specialist tribunal findings reflects broader principles of judicial restraint in employment matters requiring particular expertise and contextual understanding.

Implications for practice

The Privy Council's restoration of both exemplary damages and costs awards sends a clear message regarding acceptable standards in dismissal procedures. The decision emphasises that exceptional circumstances surrounding the manner of dismissal can justify both exemplary damages and departure from the usual costs rules in industrial proceedings.

The case reinforces the Industrial Court's role as the appropriate forum for determining complex employment disputes, with appellate courts exercising caution before interfering with specialist assessments of industrial relations matters. The judgement underscores that adherence to proper procedural standards in dismissals remains paramount, particularly regarding communication and timing of termination decisions.

Antigua and Barbuda Transport Board v Anderson Carty establishes valuable precedent for similar jurisdictions, demonstrating that harsh or oppressive conduct in dismissal procedures can attract both substantive remedies and cost consequences, thereby incentivising proper adherence to established industrial relations principles.