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Supreme Court rules failure to arrange compulsory employer’s liability insurance not actionable against directors.

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Supreme Court rules failure to arrange compulsory employer’s liability insurance not actionable against directors.


06 July 2016

The long running question of whether or not a director is personally liable for a corporate failure to arrange compulsory employers liability insurance has been finally answered by the Supreme Court in Campbell v Gordon [2016] UKSC 38. The question has divided both the English Court of Appeal and the Inner House, and it could not be decided by unanimity even in the Supreme Court. The Court ruled, by a majority of 3:2, that the failure by a director to arrange insurance for the company’s employers did not result in civil liability.

The successful director, Mr Gordon, was represented by Axiom’s Roddy Dunlop QC.”