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Liability Risk and Insurance

Causal link only for racial discrimination loss

A victim of racial discrimination only needed to show a causal link between the loss for which compensation was claimed, and the discrimination, and did not need to show that it was reasonably foreseeable. The victim in this case had appealed a decision to award him £5000 compensation for injury to his feelings, plus a small amount for financial loss. After the racial abuse, he had suffered severe depression and had fallen into debt. Appeal said the tribunal had applied the wrong test. Case was sent back to the employment tribunal to reconsider the issue of compensation.

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