Fighting for fair compensation: overturning a landmark mesothelioma ruling.
Mr. Head was a highly successful businessman who tragically developed mesothelioma due to asbestos exposure while working as a heating engineer from 1974 to 1979 for Culver Heating Co Ltd. His prognosis forced him to confront not only his illness but also the financial future of his family and their thriving heating and ventilation business.
Mr. Head was the driving force behind the company, working alongside his wife and sons, who were also shareholders. His family had been preparing for the next generation to take control, but the diagnosis raised critical questions about his lost earnings and their future security.
The legal battle.
While the defendant admitted liability for exposing Mr. Head to asbestos and agreed to compensate for certain damages – including care, house adaptations, and medical costs – there was significant dispute over the compensation for his “lost years” (his future loss of earnings).
The defendant argued that the business, as a capital asset, would continue to generate income. Mr. Head’s legal team countered that his personal efforts were integral to the company’s success, and the income could not simply be classified as passive dividends from his shareholdings.
High Court ruling sparks controversy.
In the initial Hight Court decision, Mr. Head was awarded general damages but denied compensation for his projected lost earnings, which were estimated at just under £4.5 million. The court ruled that although Mr Head would lose his salary from the company, his shareholding dividends would continue to provide income for his family, mitigating any loss.
Judge Clark stated:
“The important distinction… is between earnings which are lost by the claimant’s death, and those which survive the claimant’s death.”
The ruling hinged on the idea that the company’s profitability would remain stable under the leadership of Mr. Head’s sons, even in his absence.
Court of Appeal overturns High Court decision.
Mr. Head’s legal team appealed on the grounds of “manifest injustice”. The Court of Appeal ultimately overturned the High Court’s decision, ruling that Mr. Head’s lost earnings should be compensated.
Lord Justice Bean, delivering the judgement, emphasised that Mr. Head’s personal contributions were critical to the business’s success. The court acknowledged that the profits generated were tied to his labour and expertise, not merely his shareholding. Furthermore, the shareholdings were deemed non-transferable, as they represented his earning capacity rather than a traditional investment.
Lord Justice Bean remarked:
“This was a rare exception… perhaps the most striking one I have seen during six years’ service in this Court. It was necessary to reopen the determination of this appeal to avoid real injustice”
A legacy secured.
Although Mr. Head sadly passed away, aged 61, before the appeal was heard, the ruling ensured his family received a substantial award for the loss of his earnings.
At RWK Goodman, we specialise in fighting for justice in complex cases. If you or a family member have questions about the mesothelioma claims process, our dedicated team is here to help. Contact us today – we are committed to securing justice for you and your loved ones.
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