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Carr v. Minister for Education [2000] IESC 73 (23rd November, 2000)
THE
SUPREME COURT
1998/182
JR
229
& 231/99
Keane
CJ.
McGuinness
J.
Hardiman
J.
Geoghegan
J.
Fennelly
J.
BETWEEN
LUCY
CARR
Applicant/Respondent
and
THE
MINISTER FOR EDUCATION AND SCIENCE AND THE CITY OF LIMERICK VOCATIONAL
EDUCATION COMMITTEE
Respondents/Appellants
Judgment
of Mr. Justice Geoghegan delivered the 23rd day of November 2000 [Nem. Diss.]
INTRODUCTORY
1. By
an order made by the High Court (Morris P.) on the 25th of August, 1999 the
Court granted the applicant orders of
certiorari
in
respect of decisions made by both
________________________
page break ________________________
(2)
respondents
on the 27th of November, 1997 suspending payment of the salary of the applicant
as an officer of the second-named defendant, and the Court also made
declaratory orders to the same effect, and a consequential order directing the
first-named respondent to authorise and the second-named respondent to pay to
the applicant all arrears of salary owing from the second-named respondent to
the applicant from the 1st of December, 1997 to date. Both respondents have
appealed to this Court from these orders.
THE
FACTS
2. This
case has had a long and complex pre-history and history. To understand the
issues involved in this appeal it is necessary to give a brief summary of
relevant events before the decisions complained of in relation to suspension of
salary were made. The starting point is the appointment of the applicant to be
Principal of St. Anne’s Post-Primary School, George’s Quay, in the
City of Limerick. This appointment was made in the month of November, 1970. The
appointment was governed by written contract a term of which was that the
appointment was terminable by three month’s notice in writing from either
side. The appointment, however, was not exclusively governed by the written
contract as there are statutory provisions in the Vocational Education Acts
limiting the power of the Vocational Education Committee to remove appointed
officers, and I will be referring to these provisions later on in the judgment.
The school in question was permanently closed down in 1976 but as was made
clear in a previous judgment of the Supreme Court to which I will be referring,
that event of itself and by itself did not bring the employment to an end, in
that not only were there statutory limitations on removal but the contract
itself provided that the second-named respondent could transfer the applicant
as Principal to another school under that respondent’s jurisdiction.
Before St. Anne’s school was actually closed in 1976 the applicant was
________________________
page break ________________________
(3)
suspended
in that year under
s. 7 of the
Vocational Education (Amendment) Act, 1944
pending an inquiry into allegations of insubordination by her. Some four years
later by letter of the 25th of July, 1980 the applicant was informed by the
second-named respondent that the first-named respondent had decided that the
suspension should be terminated and that she should be paid remuneration
withheld from her.
3. It
is not necessary to go into all the problems which then arose and which
eventually led to a case in the High Court and an appeal from there to this
court. But in summary, the VEC adopted the approach that the school having been
closed down, they could comply with the contract by requiring the applicant to
revert to being an ordinary teacher, but giving her the salary which she would
have received as Principal if St. Anne’s school had remained in being.
When the applicant did not report for duty on a specified date the VEC treated
her as having repudiated the contract and refused to pay her from then on. As I
have mentioned, she instituted proceedings which ended up in the Supreme Court.
The effect of the Supreme Court’s decision was that under the
applicant’s contract the obligation of the VEC was either to employ her
as Principal of the school to which she had been appointed or:
“whether
she liked it or not, unilaterally employ her as the Principal to another school
under the Committee’s jurisdiction with the appropriate allowance
applicable to such school”.
4. In
the judgment of Finlay C.J. it was pointed out that under the written contract
there was a power to direct her to revert to her previous status as a teacher
but only if her work as Principal was deemed unsatisfactory. It followed from
the decision of the Supreme Court therefore that her contract had not been
lawfully terminated and she was entitled to full salary up to the date of that
decision. The former Chief Justice, however, in delivering the judgment of the
Court, observed that if it was impossible for the VEC to offer the applicant an
equivalent job
________________________
page break ________________________
(4)
as
Principal because of the absence of a suitable vacancy, then with the consent
of the Minister for Education she could be made redundant. It is obvious that
Finlay C.J. was not using the word
“redundant”
in
the special context in which the word is used in the Redundancy Acts. He was
referring simply to the statutory power of removal of an officer, presumably
for good reason with the approval of the Minister. The Supreme Court made a
declaration that the applicant was still an officer of the Vocational Education
Committee in the position of a principal of a school which was within their
jurisdiction and a declaration that she was entitled to be paid the salary from
the date on which she was originally suspended giving credit for any payments
of salary or in lieu of salary that had been made since that time.
5. It
is what happened after that decision that has led to the further proceedings
which are now before this court on appeal. Following on the earlier Supreme
Court decision of the 17th of October, 1991 Limerick VEC reviewed the position.
The following letter was written by their Chief Executive Officer to the
Minister for Education on the 16th of July, 1992.
“Re.
Supreme Court decision - 17th of October, 1991
Miss
L. Carr v. VEC and Others
Dear
Minister,
The
City of Limerick VEC has been considering the above Decision (copy enclosed) in
recent months in consultation with its Legal Advisors.
The
Committee, at a Special Meeting held on the 10th of July, 1992 decided
unanimously to request your approval to remove Miss Carr from office in
accordance with the provisions of
s. 23(4) of the
Vocational Education Act, 1930.
We
enclose copy of Ms. Carr’s signed conditions of service.
________________________
page break ________________________
(5)
In
accordance with the Committee’s decision, I hereby request your approval.
Yours
sincerely”.
6. Somewhat
strangely the letter was addressed to the then Minister personally, Mr.
Séamus Brennan, T.D. and his private secretary replied on his behalf
with what might generally be regarded as a holding letter. This was followed up
by a letter of the 19th of August, 1992 from the relevant Principal Officer in
the Department of Education requesting on behalf of the Minister more details
as to the basis for the request for the removal. In particular, the Chief
Executive of the VEC was requested to provide details of the duties assigned to
Miss Carr since her restoration to the City of Limerick VEC since the 1st of
November, 1991 together with confirmation that she had been reporting for duty
and an assessment of her performance to date. The Chief Executive replied to
the effect that the Committee’s decision was taken after several meetings
considering the Supreme Court decision and pointing out that the Minister
already had copies of the minutes of those meetings, but nevertheless further
enclosing such copies. After some further relatively immaterial correspondence
passing between the Department and the Committee a detailed letter was written
to the Minister by the Chief Executive of the VEC on the 30th of November,
1992. It is not necessary to set out this rather lengthy letter in full but
referring to the “assumption”
of
Finlay C.J. that a termination of the contract under its terms was equivalent
to “removal of an officer”
under
s. 23(4) of the 1930 Act and therefore required the Minister’s approval.
The Chief Executive went on to observe as follows.
“It
is by reason of this assumption of the Chief Justice that approval was sought
in my letter of the 16th of July ‘to remove Miss Carr from office in
accordance with the provisions of
________________________
page break ________________________
(6)
section
23(4) of the
Vocational Education Act, 1930’. I am now advised that my
request would have been more correctly stated as ‘to terminate Miss
Carr’s appointment in accordance with the terms of her conditions of
service or alternatively to remove her from office in accordance with
section
23(4) etc.’
7. The
Committee’s present position is as follows:-
1.
The Committee has no vacancy at present for a position equivalent to that held
by Miss Carr prior to her suspension.
2.
Even if the Committee had such a vacancy, it feels that it would be very
difficult at this time to re-establish a harmonious employer/employee
relationship with Miss Carr in view of the events which have happened. She has
not, moreover, made any approach to the Committee with a view to resumption of
her duties since the date of the Supreme Court judgment.
3.
Nevertheless, under the Supreme Court decision, she continues to be an officer
of the Committee and will be entitled to salary as such, unless and until her
appointment is lawfully terminated.
8. I
emphasise that this request of the Committee is not based on any ground of
misconduct or unfitness, such as must be established under sections 7 or 8 of
the 1944 Act. No such requirement is contained in section 23(4) of the 1930
Act, nor in the relevant provision of Miss Carr’s conditions of service,
nor does it appear that any particular reason must be assigned by either party
to the contract for the exercise of their contractual rights. However, having
regard to the observations of the Chief Justice mentioned above, the approval
of the Minister is now sought for exercise by the Committee of the
aforementioned contractual rights.
Mise
le meas”.
9. A
follow-up reminder was sent by the Chief Executive and a holding reply was
returned by the Department. A further more urgent follow-up letter was written
by the Chief Executive on the 20th of September, 1993 making it clear following
a perusal of the Local Government Auditor’s Report that the members of
the Committee agreed with the auditor’s comment that “it is
imperative that this matter be finalised without further delay”. Again a
________________________
page break ________________________
(7)
holding
letter was written by the Department. A proper reply was, however, finally
written on the 4th of November, 1993. That letter read as follows.
“Dear
C.E.O.
I
refer to your letter of the 30th of November, 1992 concerning your
Committee’s request to terminate Ms. Carr’s appointment in
accordance with the terms of her conditions of service or alternatively to
remove her from office in accordance with
section 23(4) of the
Vocational
Education Act, 1930.
The
Minister is advised that If your VEC propose to remove Miss Carr from office
pursuant to
section 23(4) of the 1930 Act then there must be a ground or reason
for the removal. That reason should not be one of the statutory grounds of
removal specified in
section 8 of the
Vocational Education (Amendment) Act, 1944.
If
there is no vacancy for a position equivalent to that held by Miss Carr as
suggested in your letter of the 30th of November, 1992 then it would be
advisable for your VEC to warn Miss Carr in advance of this fact and to request
her to take up some alternative position, if that was available.
The
Minister is also advised that it would be prudent to engage in a measure of
consultation with Miss Carr in advance of a decision being made by your VEC so
as to enable her to make submissions in relation thereto.
The
Minister is prepared to examine any proposal which your VEC may wish to submit
to her in relation to Miss Carr’s continued employment provided that the
procedural matters referred to in the preceding paragraphs are adhered to.
In
any event a removal from office should allow for the three months time limit
stipulated by the contract.
Yours
sincerely
Camillus
Hogan
Assistant
Principal”.
10. That
letter elicited a reply from the Chief Executive of the VEC which set out with
admirable clarity and impeccable reasoning the position adopted by the
Committee. The
________________________
page break ________________________
(8)
letter
mistakenly dated 24th of January, 1993 but obviously intended to be dated 24th
of January, 1994 read as follows:
“Re:
Lucy Carr v. City of Limerick VEC and Others
A
Chara,
I
refer to your letter of the 4th of November, 1993 and confirm that the
Committee has considered the contents of same in detail and has instructed me
to respond as follows:
It
is noted that the Minister has been advised that there must be a ground or
reason for Miss Carr’s removal pursuant to section 23(4) of the 1930 Act.
While the relevant subsection of
the Act does not state that a reason is
required, the Committee considers the following grounds constitute sufficient
reasons for Miss Carr’s removal:-
A)
There is no vacancy for a position equivalent to that held by Miss Carr
available at the moment.
B)
It is felt that the employer/employee relationship between the Committee and
Miss Carr has deteriorated to such an extent over the years, as a result of
litigation and otherwise, that even if such a position were available it would
not be realistically workable.
C)
The Committee being a public body, did not, nor does it, consider it just or
equitable that it should be continuing to pay Miss Carr’s salary as an
officer of the Committee, as effectively there is no job available to her and
she is not working.
The
Committee is not prepared to request Miss Carr to take up ‘some
alternative position’ for the following reasons:
(I)
That such an alternative position is not available and
(II)
even if it were available it would not be realistically workable for the
reasons set out above.
It
is quite evident that all attempts to consult with Miss Carr have failed Many
years ago both land the Committee’s legal advisor met with Miss Carr
briefly in an attempt to consult with her, and the meeting itself was a total
non-starter. Evidence was produced in court, showing that Dr. O’Regan, an
officer of the Department also made unsuccessful efforts to consult with her.
Miss Carr wrote to the Committee, indicating that no effort should be made to
consult with her. The Committee considers that the suggestion contained in the
fourth paragraph
________________________
page break ________________________
(9)
of
your letter under reply is totally impracticable. Furthermore it is up to Miss
Carr to minimise her own losses.
It
has always been the Committee’s decision that if the Minister agrees to
the Committee’s proposal to remove Miss Carr from office in accordance
with section 23(4) then the Committee would give Miss Carr the three months
notice of the termination of contract in accordance with the conditions of
service agreed between Miss Carr and the Committee. However, if the Department
feels that Miss Carr should be formally advised of the Committee’s
proposal at this stage then the Committee has no suggestion to the Department
informing Miss Carr accordingly.
The
above represents the Committee’s firmly held view in this matter and I
must point out that unless the Minister’s consent is obtained to remove
Miss Carr from office, then the Committee must continue to pay Miss
Carr’s salary, which position it finds totally untenable.
Mise
le meas”.
11. Apart
from a holding letter no response came from the Department until by letter of
the 11th of May, 1994, the Chief Executive Officer was informed as follows:
“The
Minister is advised that before a final decision is made by your VEC to remove
Ms. Carr from office (which decision would then have to receive the approval of
the Minister) that Ms. Carr be informed of what is proposed and the reasons for
same and requested to make submissions within a reasonable period of time
(which period of time should be stated).”
12. There
then followed lengthy letters passing between the Chief Executive and the
Department to which it is not necessary to refer. The respective respondents
got into argument as to the interpretation of the relevant statutory
provisions. In fairness to the Department, the Vocational Education Committee,
having been crystal clear as to the stand they were adopting and the basis for
it up until their letter of the 30th of May, 1994, seemed to lose its way in
that letter and as correctly pointed out by the Department turned the legal
________________________
page break ________________________
(10)
position
into confusion. After some further holding correspondence the Committee wrote a
letter to the Department on the 24th of July, 1995 more or less acknowledging
that the legal position was as stated by the Department. But the Committee went
on to emphasise the point which it had always made namely, that there was no
vacancy for an equivalent position to Miss Carr’s former office of
Principal of St. Anne’s Post-Primary School. They pointed out that it was
clear from the judgment of the Supreme Court that in that situation the
Committee was entitled to consider the applicant to be redundant and to apply
to the Minister for consent to her removal. It would be pointless to review the
further correspondence which then took place. It suffices to state the Minister
did not give his consent to the removal.
13. Instead
the Department decided that the Committee should enter into negotiations with
the applicant “with a view to arriving at an agreed solution”. In
order to achieve this purpose the Department suggested that there be an agreed
facilitator. That suggestion seems to have been made for the first time in a
letter of the 6th of September, 1996 from the Department to the Chief
Executive. I will return to what happened about this suggestion in due course,
but at this stage I think that I should temporarily digress from the
correspondence between the Department and the VEC to explain the history up to
that point of communications with the applicant herself. The Chief Executive of
the VEC sent a letter dated the 24th of July, 1995 by registered post to the
applicant warning her of the Committee’s decision to consider removing
her from office under section 23(4) of the Vocational Education Act, 1930 and
inviting her to make representation. The letter set out the grounds upon which
the Committee proposed to consider seeking the applicant’s removal from
office by three month’s notice in the following terms:-
________________________
page break ________________________
(11)
“1.
It is impossible for the Committee to offer you a position equivalent to that
of Principal of St. Anne’s Post-Primary School because the Committee do
not have a vacancy in such a position and
2.
Having been requested by the Committee, as directed by the Minister, to resume
duty from the commencement of the school year 1980/81 you failed to do so. The
Committee for its part has decided not to invite negotiations in relation to
its 1980 request referred to above. The reason for this is that the Committee
feel that the employer/employee relationship between the Committee and you have
deteriorated to such an extent over the years that the re-establishment of a
working relationship would be very difficult. Accordingly, the Committee feels
that it would not be in the best interests of its schools to attempt to
persuade you to take an appointment to an alternative vacancy in a position
other than that of Principal which you are not legally bound to accept and
which the Committee is not legally bound to offer.”
14. That
letter was answered by the applicant by way of a very short reply dated 29th of
July, 1995 which read as follows:-
“Dear
Sir,
I
cannot imagine why you wrote to me on the 24th inst. to tell me what the VEC
MIGHT DO, and such a long letter too!
Yours
faithfully”
15. It
was following on that exchange of correspondence that the VEC sought the
consent of the Minister to the termination of the applicant’s employment
and as I have already explained the Minister’s ultimate response was to
encourage negotiations with the assistance of a facilitator.
16. It
is not necessary to cover all the correspondence and documentation relating to
the facilitator. It is sufficient to state that the applicant ignored all
overtures in this regard. Ultimately, the Minister appointed Mr. Jack Marrinan,
former General Secretary of the Garda Representative Association, to perform
the function of facilitator. He made strenuous
________________________
page break ________________________
(12)
efforts
to contact the applicant but to no avail. The applicant ignored all
communications. Mr. Marrinan ultimately prepared a report. It concluded that
the VEC wanted to secure a settlement in the case and that the Committee was
prepared to make major concessions for this purpose. But the facilitator
pointed out that nothing could be done without the applicant’s
co-operation and he effectively concluded that that was never likely to be
forthcoming. The tenor of his report was to the effect that the applicant was
wholly unreasonable in the attitudes which she was adopting. The report was
dated the 12th of March, 1997.
17. I
now move to a most important letter written by the Department to the applicant
and dated the 30th of July, 1997. The letter read as follows:
“Dear
Ms. Carr
You
will be aware that for some time now, this Department and the City of Limerick
Vocational Education Committee have sought to enter into discussions with you
about your return to active employment with the Committee at a level
commensurate with the salary you were receiving. You must be aware of a growing
concern that you have been and are being paid your salary, yet you omit for
whatever reason to enter into any correspondence with your employer.
So
that this impasse might be resolved, the Department of Education requested an
independent facilitator to try and establish a viable means of communication
with you. To this end, Mr. Jack Marrinan, former General Secretary of the Garda
Representative Association, agreed to act in this capacity. The enclosed
dossier of correspondence illustrates the efforts he made all of which were
unsuccessful. For your convenience a list of the said correspondence is
included itemising each letter. The report we received from Mr. Marrinan is
also included with this letter.
So
far, all our efforts have met with total silence on your part. In our letter of
the 8th of May, 1997 it was pointed out that your continued non-co-operation
may be regarded as misconduct and may be treated as such.
________________________
page break ________________________
(13)
In
the continued absence of any response from you to any of our letters or other
efforts to make contact with you, it is the opinion of the Minister for
Education that, by making yourself unavailable for discussions on your return
to active employment, you have misconducted yourself in relation to your office
and you have failed to perform satisfactorily the duties of your office.
In
accordance with
section 7 of the
Vocational Education (Amendment) Act, 1944 the
Minister must now consider what disciplinary action to take against you. In
these circumstances, and if the Minister must take disciplinary action, it is
likely to take the form of suspension of your salary until such time as you
enter into constructive discussions about your return to active employment with
the Committee. You can be assured that no final determination has been made by
the Minister. Before reaching any final conclusion, either on the fact of your
misconduct or failure or on the disciplinary action to be taken, the Minister
wishes to give you a further opportunity to respond to our request for
discussions on your return to work Alternatively, you may wish to make
representations on why the Minister should not conclude that you have
misconducted yourself or have failed to perform your duties and on why
disciplinary action should not be initiated.
Any
response or representation to this letter must be made within fourteen days of
the date of this letter and addressed to either the writer (Mr. S. O
Breacáin, Principal Officer) or to the Secretary of the Department of
Education at the above address.
Yours
sincerely,
S.
O Breacáin,
Principal
Officer”.
18. That
letter was sent by registered post but delivery was not accepted. Subsequently,
it was sent to the applicant’s solicitors who did not respond. Eventually
the Department arranged that the VEC would send the letter enclosed with a
salary cheque. It would appear therefore that ultimately the applicant did in
fact receive that letter.
________________________
page break ________________________
(14)
19. No
response was received by the Department or the VEC to that letter and the
following key letter dated the 3rd of November, 1997 was then sent to the
applicant with a copy being sent to her solicitors. This is the letter
notifying the applicant of the decision of the Minister sought to be impugned
in these proceedings and it read as follows:-
“Dear
Ms. Carr
I
refer to previous correspondence.
As
you will be aware, this Department and the City of Limerick Vocational
Education Committee have made strenuous efforts to engage you in meaningful
discussions in relation to your return to active service for the Committee.
None of these efforts have been successful and you continue to ignore the
request of your employer and this Department to enter into discussions.
Further
to this Department’s letters of July 30th and August 28th, 1997 and in
the absence of any reply from you, the Minister has now decided to take
disciplinary action against you by suspending payment of your salary until such
time as you are prepared to enter into meaningful discussion with the Committee
and the Department on your return to work in an appropriate position.
Please
also note that if you persist in what appears to be a refusal to discuss your
return to work the Minister will have to consider further disciplinary action,
including your possible removal from office.
Yours
sincerely
S.
Ó Breacáin
Principal
Officer
Department
of Education and Science”.
20. Although
that particular letter does not set out the legal basis on foot of which the
Minister was purporting to suspend payment of the salary as a disciplinary
measure it will be recalled that in the letter of the 30th of July, 1997 cited
above it is made perfectly clear that
________________________
page break ________________________
(15)
the
Minister was regarding
section 7 of the
Vocational Education (Amendment) Act,
1944 as authorising him to suspend salary as a disciplinary measure. I am quite
satisfied that at all material times the applicant was entitled to assume that
that was the purported legal basis on which the Minister was suspending the
salary and that in so far as the VEC thereafter failed to pay the salary it was
doing so pursuant to directions from the Department following upon such
purported suspension.
21. The
letter of the 3rd of November, 1997 at last led to correspondence between the
Department and the solicitors for the applicant. It is not necessary to set out
this correspondence. It is argumentative both as to the facts and as to the
law. The factual arguments, are not relevant to this appeal. For the purposes
of these proceedings the importance of the correspondence is the contention by
the solicitors for the applicant that as a matter of law the Minister had no
power to suspend the applicant’s salary, and in particular had no power
to do so under section 7 of the 1944 Act. If the applicant’s solicitors
are correct in their contentions then
prima
facie
the
applicant is entitled to the orders sought in this judicial review proceeding.
I use the word expression “
prima
facie
”
advisedly
in that even if the applicant does have the
prima
facie
entitlement
the Court must consider certain other arguments which were made before it as to
whether as a matter of discretion such orders ought to be refused and also
certain novel arguments relating to the withholding of the salary made by Mr.
Crosbie, counsel on behalf of the VEC.
THE
LAW
________________________
page break ________________________
(16)
suspending
the salary of the applicant. The parts of the section which are relevant to
these proceedings are subsection (1), (3) and
(5).
These
read as follows:-
“(1)
Whenever in respect of the holder of an office under a Vocational Education
Committee there is, in the opinion of such Committee or of the Minister, reason
to believe that such holder has failed to perform satisfactorily the duties of
such office or has misconducted himself in relation to such office or is
otherwise unfit to hold such office, such committee or the Minister (as the
case may be) may suspend such holder from the performance of the duties of such
office while such alleged failure, misconduct, or unfitness is being inquired
into and the disciplinary action (if any) to be taken in regard thereto is
being determined and such inquiry shall be held as soon as conveniently may be
after the date of the suspension.
(3)
The Minister may terminate a suspension under this section and every such
suspension shall continue until so terminated.
(5)
The holder of an office who is suspended under this section shall not be paid
any remuneration in respect of such office during the continuance of his
suspension and, upon the termination of his suspension, the remuneration which
he would, had he not been suspended, have been paid during the period of
suspension shall be wholly or partly forfeited, or paid to him, or otherwise
disposed of as the Minister shall direct.”
23. It
is perfectly obvious from a reading of those subsections that whereas in
certain circumstances relating to performance of duties, the Minister may
suspend an officer of the VEC pending an inquiry into the matters complained of
in which event the salary is suspended, there is no power whatsoever under the
section merely to suspend the salary whether on the grounds of unreasonable
behaviour by the officer or otherwise. In fairness,
________________________
page break ________________________
(17)
counsel
for the Minister, Mr. O’Reilly, did not really attempt an
interpretation
of the section that would have permitted suspension of salary only. He merely
emphasised that that was how the Minister himself interpreted it originally
when he made the decision. He did, I think, also make an argument that
suspension of an officer was a more serious disciplinary measure than
suspension of the salary and that in some way or other the power to impose the
greater penalty impliedly authorised the imposition of a lesser penalty. He did
not, however, seriously press that argument nor could he. To rely on a
statutory power to suspend salary only it is necessary to point to a statutory
provision which expressly permits it. Mr. O’Reilly did also argue that
independently of
the Act there might have been a common law right to withhold
salary. This argument was more fully developed by Mr. Kerr. That argument,
however, formed the major submission at the hearing of the appeal by Mr.
Crosbie counsel for the VEC and I will consider it in more detail in that
context. It would seem quite clear that the Minister cannot possibly for the
purposes of this appeal rely on a common law right to suspend salary. At all
material times he relied on the statutory power and that continued in the
pleadings in the proceedings. But at any rate, it is difficult to see how a
common law right to direct withholding of salary could arise. The salary was
payable by the VEC under contract even though the Minister funded it. Any
rights deriving from the ordinary law of contract cannot avail the Minister
whatever about the V.E.C.
24. It
was not seriously argued by the VEC that there was any statutory power in the
Minister to do what he did. I am satisfied that he had no such power and that
subject to the other matters which I have mentioned the orders sought under
judicial review would have to be granted.
________________________
page break ________________________
(18)
25. But
Mr. O’Reilly has strongly urged upon the Court that
certiorari
and
mandamus
are
discretionary remedies and that this Court ought to exercise its discretion by
refusing the orders notwithstanding the illegality committed by the Minister
because of what he submits was the wholly unreasonable behaviour of the
applicant in refusing to co-operate with finding a solution and in failing to
enter into any meaningful negotiations. The applicant is particularly
criticised for her neglect to co-operate in any way with the facilitator or
even to suggest an alternative facilitator or any alternative method of
mediation. I do not think that this is a suitable case for this Court to review
or restate the principles applicable to the exercise of this discretion. I say
this, because I am satisfied that whatever may be the correct formulation of
the principles this is a clear case where the court ought not to exercise its
discretion against making the orders of
certiorari
and
declarations sought. I will return to the question of whether there would be
any basis for refusing to make the order for the payment of the back salary.
This was a case where the Minister purported to suspend salary on the basis of
the section of an Act which could not conceivably be construed as giving him
that authority. It was a decision which by its nature was to have fundamental
effects for the applicant in depriving her of her salary. It might be an
entirely different matter if there was such a power conferred by the section
but the Minister did not adopt completely fair procedures in the exercise of
the power or in some other way rendered his exercise defective and capable of
being judicially reviewed. There could be circumstances where the unreasonable
behaviour of an applicant in that situation would justify the Court in refusing
the orders as a matter of discretion. But this is not such a case. This is a
case where the decision to suspend had no conceivable statutory basis.
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26. Counsel
for the Minister rely on
The
State (Abenglen Properties Limited) v. Corporation of Dublin
[1984] IR 381. O’Higgins C.J at p. 393 of his judgment made the following
observation:-
“In
the vast majority of cases, however, a person whose legal rights have been
infringed may be awarded
certiorari
ex debito justitiae
if he can establish any of the recognised grounds for quashing; but the Court
retains a discretion to refuse his application if his conduct has been such as
to disentitle him to relief or, I may add, if the relief is not necessary for
the protection of those rights. For the Court to act otherwise, almost as of
course, once an irregularity or defect is established in the impugned
proceedings would be to debase this great remedy.”
27. In
this connection I think it instructive to cite also a passage from the judgment
of Henchy J. in the same case at p. 401.
“It
was strenuously argued on behalf of Abenglen on the basis of certain dicta in
The
State (Vozza) v. O’Floinn
that, if the respondent’s decision was made in excess of jurisdiction,
certiorari
should issue
ex
debito justitiae
and not as a matter of discretion. I cannot accede to that argument.
The
distinctive feature of
Vozza’s
case is that it was a criminal case which resulted in the conviction of
Vozza
in peculiarly unfair circumstances which amounted to a breach of his
constitutional rights and of the requirements of natural justice.”
28. Henchy
J. goes on to recite the facts in
Vozza’
s
case and to draw the conclusion that the order which was quashed was a
conviction for a criminal offence. He went on to say that the reasoning in the
relevant judgments had no bearing on the
Abenglen
case
where the decision questioned was that of a planning authority purporting to
exercise a civil jurisdiction of
an
administrative
nature. He expressed the view that as a matter of discretion
certiorari
should
be refused for two reasons. His first reason was that its only purpose, namely, a
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development
permission by default, was in fact an unattainable object and his second reason
was that the applicant ought to have gone the route of appeal rather than
certiorari.
It
would seem to me that these are essentially procedural matters. In so far as
the applicant was acting unreasonably it was procedural unreasonableness. In
this case, counsel for the Minister is invoking alleged substantive
unreasonableness. It may well be that there are circumstances where that type
of unreasonableness could deprive an applicant of the discretionary remedy but
this is not one of them. For the Court to refuse
certiorari
would
be to condone an open illegality by the Minister in the face of the wording of
the statute. Put otherwise, the antecedent unreasonable behaviour of the
applicant of which the Minister was fully aware, would confer on the Minister a
statutory power which was not established by the section upon which the
validity of his decision depended.
29. If
one was just to rely on the head note counsel for the State might be on
stronger grounds in relying on
Aherne
v. The Minister for Industry and Commerce (No. 2)
[1991] 1 IR 462. That was a decision of the High Court (Blayney J.) The
unreasonableness relied on in that case was in a sense procedural also. It
certainly was very different from this case. But anything that Blayney J. had
to say about it would appear to be
obiter
dicta.
The
actual basis of his refusal of
certiorari
was
that “even if the legal rights of the applicant were infringed in the
present case, the order sought is not necessary for the protection of those
rights.”
(See
p. 470)
30. I
now turn to the arguments made by Mr. Crosbie, counsel for the Vocational
Education Committee. Mr. Crosbie makes the ingenious argument that the
applicant was in a contractual relationship with the Vocational Education
Committee and that under the implied terms of that contract the VEC was not
obliged to pay salary if the applicant was not
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performing
her side of the contract. Mr. Crosbie acknowledges, of course, that she could
not perform the functions of Principal of St. Anne’s School as that
school was long ago closed, but he said that in those circumstances it was an
implied term of her contract that she should leave herself open to reasonable
negotiations with her employer as to alternative arrangements for her if her
contract was not to be terminated. One can argue backwards and forwards as to
who should have started these negotiations but I think that for the purposes of
Mr. Crosbie’s argument it is sufficient to rely on the applicant’s
total non-co-operation with the facilitator or even the suggested appointment
of a facilitator. There is undoubtedly authority to the effect that in some
circumstances an employer may. under the terms of the contract, withhold pay if
the corresponding dependent obligations of the employee are not performed. This
is separate from and independent of any possible right of counterclaim,
cross-action or setoff on the part of
an
employer
in respect of breaches of contract by the employee. Before I refer to any
authority on this matter I should point out that Mr. Crosbie’s cogent and
impressive arguments do not appear to be based on any formal ground of
opposition set out in the statement of opposition delivered and filed on behalf
of the VEC. However, well-founded the arguments may be they cannot, for that
reason, be accepted as a substantive answer to the application. But this does
not mean that they are irrelevant because they might arguably form a basis on
which the Court, as a matter of discretion, would refuse the order for payment
of the back-monies for salary even if the order of
certiorari
was
granted.
31. No
relevant Irish authority on Mr. Crosbie’s argument was cited to the Court
and of the other authorities it would seem to me that it is only necessary to
refer to one, that is to say,
Miles
v. Wakefield Metropolitan District Council
[1987] AC 539
.
This
was a decision of the House of Lords and the unanimous view of their Lordships
was expressed in the
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speeches
of Lord Templeman and Lord Oliver of Aylmerton. But it is to the speech of the
latter which I will refer because it is in that speech that there is a closely
reasoned analysis of the rights of an employer to deduct pay for
non-performance by an employee independently of any right of counterclaim or
set-off. Counsel for the plaintiff, a Mr. Sedley, in that case had argued
before the Appellate Committee that there were a number of authorities in
support of the proposition that an employer under a contract of employment had
no right to withhold any part of salary for non-performance by an employee. He
submitted that in a case where an employee was in breach of the terms of his
employment, the employer had only two options. Lord Oliver at p. 566
of
his speech then sets out counsel’s development of that submission.
“He
may, if the failure to carry out contractual duties is sufficiently serious,
treat it as a repudiatory breach of contract and accept the repudiation, thus
bringing the contract to an end and excusing himself from further performance
of his own obligation to pay the contractual wage or salary. Alternatively, he
may affirm the contract and sue for damages for the breach which has occurred.
That claim is one which, if he is sued by the employee for wages, he can exert
by means of a counterclaim or setoff so that effectively he can, in practice,
make a deduction from the employee’s wages. If he does, however, he must
be prepared to justify the deduction by reference to the damage which he has
suffered”.
32. The
counsel went on to cite authorities which he said supported that proposition.
33. However
at p. 574 of the report Lord Oliver sets out the submission in this regard of
counsel for the defendant in the following terms:-
“Thus
it is Mr. Irvine’s submission on behalf of the Council that there is no
necessity to engage in a tortuous process of seeing whether the Council can
establish by way of set-off some valid counterclaim for damages quantified so
as to equal or exceed the amount of the plaintiff’s claim. The plaintiff,
he
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submits,
fails at an earlier stage because he simply is not able to aver and prove that
he was ready and willing to perform the services which formed the consideration
for the payment claimed and on the performance of which it depended His claim
simply fails for want of proof of an essential allegation.”
34. Lord
Oliver then observed on the same page that:
“the
essential question is whether what Mr. Irvine has termed the theory of
interdependent obligation is consistent with the authorities relied upon by Mr.
Sedley in support of his proposition that, short of accepting the
employee’s breach as a repudiation determining the contract altogether,
there is no way in which an employer can resist a claim for the full
contractual remuneration other. than the establishment of a counterclaim for
damages.”
35. Lord
Oliver, while conceding that he did not find the question an easy one came down
in favour of Mr. Irvine’s submissions.
36. It
is certainly open to argument that the Court should imply a term in the
contract of employment between the VEC and the applicant requiring reasonable
openness to negotiation as suggested by Mr. Crosbie. If the Court were now to
consider that matter and find in favour of Mr. Crosbie’s argument it
might be tempting to refuse as a matter of discretion the consequential order
for the payment of the back salary and allow that matter to be litigated as
part of an ordinary civil action for the recovery of that salary. The VEC could
then make the defence suggested by Mr. Crosbie and additionally or
alternatively claim set-off or counterclaim for damages for breach of contract.
However, I have come to the conclusion that it would not be desirable for this
Court to succumb to that temptation. It is of paramount importance that the
Court should vindicate the applicant in her correct allegation that the
Minister acted wholly
ultra
vires
the
statute in suspending her salary and merely to
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quash
that decision without making the consequential order for the payment of the
salary due would not be a proper vindication of the applicant’s rights.
37. However,
even if the order for the payment of the back salary made by the High Court is
affirmed by this Court, I see no reason why the Limerick VEC would be precluded
from suing the applicant in the ordinary civil courts for damages for breach of
her contract if the Committee is advised that she was guilty of such breach.
The effect of the orders of the High Court which I suggest should be upheld
will be that the Committee will be permanently precluded in relation to the
back salary from making the kind of defence discussed by Lord Oliver of
Aylmerton in
Miles
v. Wakefield MDC
but this in no way precludes the Committee from instituting its own action for
damages for breach of contract. Furthermore it will be open to the Committee to
consider whether it might be entitled to withhold future salary on the
principles recognised in
Miles
v. Wakefield MDC
.
38. Although
it does not directly arise, I think that I should also make clear that nothing
in this judgment is in any way intended to contradict or modify the view of
this Court in the earlier appeal as expressed by Finlay C.J. that the applicant
can effectively be made redundant and her employment with the VEC terminated
with the consent of the Minister using the machinery of s. 23(4) of the
Vocational Education Act, 1930. I should also add in this connection as there
was some confusion about it in court that s. 8 of the 1944 Act would seem to be
irrelevant. That section concerns removal from office by the Minister himself
for certain statutory grounds set out in the section.
39. For
the reasons, therefore, which I have indicated, I would dismiss the appeal and
affirm the order of the High Court.
© 2000 Irish Supreme Court
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