Darren Cavanaugh v Folsana Pressed Sections Limited
| Court | King's Bench Division |
| Judge | GAVIN MANSFIELD KC |
| Neutral Citation | [2024] EWHC 1381 (KB) |
| Date | 07 June 2024 |
| Year | 2024 |
| Counsel | Mr Jeremy Hyam Kc,Mr David Platt Kc,Ms Juliet Stevens |
Neutral Citation Number: [2024] EWHC 1381 (KB)
Case No QB-2021-003172
IN THE HIGH COURT OF JUSTICE
KING’S BENCH DIVISION
Royal Courts of Justice
Strand, London, WC2A 2LL
Date : 7 June 2024
Before :
GAVIN MANSFIELD KC
(sitting as a Deputy Judge of the High Court)
Between :
DARREN CAVANAUGH
Claimant
- and -
FOLSANA PRESSED SECTIONS LIMITED
Defendant
Mr Jeremy Hyam KC (instructed by Harbottle and Lewis) for the Claimant
Mr David Platt KC and Ms Juliet Stevens (instructed by Clyde & Co.) for the Defendant
Hearing dates: 11 -19 March 2024
- - - - - - - - - - - - - - - - - - - - -
APPROVED JUDGMENT
This judgment was handed down remotely at 2pm on 7 June 2024 by circulation to the parties or their
representatives by email and by release to the National Archives.
Judgment approved by the court for hand down Cavanaugh v Folsana
Gavin Mansfield KC :
(Sitting as a Deputy High Court Judge)
INTRODUCTION
1 This is a claim for damages for personal injury brought by Mr Cavanaugh against his
former employer (“Folsana”).
2 Mr Cavanaugh was summarily dismissed by Folsana on 21 November 2018. He claims
that he was caused psychiatric injury by Folsana’s breaches of duty, contractual and
tortious, in suspending him and subjecting him to disciplinary investigation.
3 The effect of the House of Lords decision in Johnson v Unisys [2003] 1 AC 518 is that in
these proceedings Mr Cavanaugh cannot claim damages for personal i njury arising out of
his dismissal. However, a claim can be brought for personal injury caused by breaches
which occurred prior to dismissal: Eastwood and other v Magnox Plc, McCabe v
Cornwall County Council [2004] 3 All ER 991.
BACKGROUND FACTS
4 Folsana is a family owned metal fabrication business in Bolton, Lancashire. It was
founded in 1979 by Robert Haslam. The Haslam family retain t he majority of the shares
in the company. Although Robert Haslam retired as a director and employee, he remained
involved in the management of the business at the time of the events giving rise to this
claim.
5 Mr Haslam’s son, Stephen Haslam, is a director and shareholder. He has been involved in
the business since the late 1990s. He describes his role in the business as minimal – he
keeps an eye on the business finances. He operates his own property busi ness from the
same office premises as Folsana.
6 Mr Cavanaugh started working for Folsana in 1982 at the age of 16. Apart from a short
gap between 1985 and 1987 he worked there for his whole career until his dismissal in
2018. He worked his way up in the business and in 1995 he was made a company director
and Operations Manager. In 2001 he purchased a 15% holding of non-voting shares.
7 At the same time as Mr Cavanaugh was made a director, Darren Marsden was also made
a director. Mr Marsden had started working at Folsana age 17, a year or two before Mr
Cavanaugh. Like Mr Cavanaugh, he worked his way up through the business. For around
10 years from 1995, Mr Cavanaugh and Mr Marsden ran the business together with
Robert Haslam. When Mr Haslam stepped back, Mr Cavanaugh and Mr Marsden ran the
business together. Broadly, Mr Marsden was responsible for sales and commercial matters
and Mr Cavanaugh for production.
8 Bernard Donnelly s tarted working for Folsana in 1984. He left in 1988 but returned in
1993. He has remained working for Folsana since t hen. In 2012 he was appointed Works
Manager, reporting to Mr Cavanaugh.
2
Judgment approved by the court for hand down Cavanaugh v Folsana
9 The company is a relatively small one. In 2018 there were around 45 employees. There
was no dedicated Human Resources (“HR”) function. Natalie Christie (nee Young), who
was employed in an administrative role from 2016, also took care of HR. Mr Cavanaugh
himself ultimately was responsible for HR.
10 The key events took place between September and December 2018. Although I will need
to address the facts in some detail, in the following paragraphs I outline the key events, in
order better to explain the issues to be determined.
11 On 17 September 2018, Mr Cavanaugh was suspended by Robert Haslam, pending
disciplinary investigation. Folsana’s case is that the suspension arose because Mr
Donnelly had tendered his resignation, claiming constructive dismissal, and had
submitted a grievance. He said that Mr Cavanaugh’s treatment of him had become
intolerable. The circumstances of Mr Donnelly’s complaints are hotly contested by Mr
Cavanaugh.
12 Having suspended Mr Cavanaugh, Folsana carried out an investigation. That was done
initially by Ms Christie but then by a third party - Neil Hutchings. Mr Hutchings was an
acquaintance of Mr Marsden. He runs a home improvement business, but had extensive
experience as a trade union representative.
13 During the course of the investigation, a number of other employees provided evidence of
Mr Cavanaugh’s behaviour towards themselves and others. Mr Hutchings recommended
that disciplinary proceedings be commenced against Mr Cavanaugh for gross misconduct.
14 Mr Cavanaugh raised a grievance against Folsana’s treatment of him on 19 Sept ember.
The grievance was handled by Karen Pilkington, an independent HR c onsultant. Ms
Pilkington rejected the grievance on 8 October. He appealed the grievance, but the appeal
was subsequently rejected by Emma Fay, independent HR consultant.
15 Detailed disciplinary charges were provided to Mr Cavanaugh on 30 October. The
disciplinary process was handled by Kerry Green, independent HR consultant. After a
disciplinary hearing on 14 November, Ms Green decided that Mr Cavanaugh should be
dismissed summarily for gross misconduct. Mr Cavanaugh appealed his dismissal. The
appeal was heard by Jane Carroll, an independent HR consultant. She dismissed the
appeal on 17 December.
16 In the meantime, Mr Cavanaugh started to experience symptoms of mental ill-health. He
first attended his GP on 24 September, the week after his suspension. The GP recorded
stress, poor concentration and poor sleep and placed him on anti-depressants. On 27
September, the GP referred Mr Cavanaugh to Greater Manchester Mental Health and
Social Care Trust. Mr Cavanaugh’s first appointment with the Trust was on 29 October.
17 During the course of the investigation and disciplinary process Mr Cavanaugh made
seven “Mental Health Notifications” (the phrase used in the Particulars of Claim) to
Folsana, or to the HR consultants who were dealing with the process. These were
occasions on which he made reference to his mental health condition.
18 After his dismissal Mr Cavanaugh obtained a job in Liverpool , starting at the beginning
of January 2019. He resigned from that that job and moved to another job in Bolton in
March 2019, where he worked until he resigned in June 2019. He attributes his inability
3
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