Liability insurance: employers’ liability

A bare majority of the Supreme Court has, in Campbell v Gordon (Scotland) [2016] UKSC 38, an appeal from the Scottish courts, affirmed the long-standing ruling in Richardson v Pitt-Stanley [1995] QB 123 that failure by an employer company to obtain the insurance demanded by the Employers’ Liability (Compulsory Insurance) Act 1969 does not impose any tortious liability upon the individuals in control of the company.

The ruling once again brings into sharp focus the massive variations in the compulsory insurance regimes for accidents at work and accidents on the road. The majority was comprised of Lords Mance, Reed and Carnwath, and the leading judgment was given by Lord Carnwath. The dissenters were Lord Toulson and Lady Hale.