Facts
- The claimants were former employees of Barclays Bank who alleged they had been sexually assaulted by a doctor during medical examinations arranged by the bank.
- The doctor operated as an independent contractor, conducting medical assessments for Barclays Bank but running his own medical practice and retaining freedom to accept or reject referrals.
- Barclays Bank arranged and benefitted from the medical examinations but contended it had no control over how the doctor conducted them, arguing the doctor was not an employee.
Issues
- Whether Barclays Bank plc could be held vicariously liable for the alleged sexual assaults committed by the independent medical examiner.
- Whether the relationship between Barclays Bank and the doctor was sufficiently "akin to employment" to impose vicarious liability.
- What legal tests determine when an employer may be vicariously liable for torts committed by independent contractors.
Decision
- The Supreme Court concluded that the doctor was an independent contractor and not in a relationship "akin to employment" with Barclays Bank.
- It found the bank exercised no relevant control over the doctor or his practice and that he could freely accept or decline work from the bank.
- The Court held that vicarious liability does not extend to true independent contractor relationships.
- The claims against Barclays Bank were dismissed.
Legal Principles
- Vicarious liability imposes liability on employers for wrongful acts of employees in the course of employment, with a public policy aim of ensuring victim compensation and encouraging high standards.
- The "akin to employment" test requires examination of the degree of control, the involvement of the employer, and the nature of the work.
- The judgment affirms the need for a close relationship of employment-like characteristics for vicarious liability to apply.
- True independent contractors generally fall outside the scope of vicarious liability.
- The decision clarifies and limits the expansion of vicarious liability in line with prior authorities such as Cox v Ministry of Justice [2016] UKSC 10 and Mohamud v WM Morrison Supermarkets plc [2016] UKSC 11.
Conclusion
The Supreme Court clarified that Barclays Bank could not be held vicariously liable for the wrongful acts of a truly independent contractor, emphasizing that only relationships exhibiting sufficient elements of employment can attract such liability.