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EXECUTIVE INDEMNITIES: Read all about it

09 March 2012  

The claims by Andy Coulson and Glenn Mulcaire against the News of the World’s owners contain useful lessons for those negotiating, drafting and enforcing indemnities given by employers to their executives, explains Charles Wynn-Evans

Employees may seek indemnities from their employers in various situations. When an individual changes employers, particularly as part of a team move, the former employer may allege breach of fiduciary duty or restrictive covenants. The executive will wish to be covered for legal costs should litigation ensue, as well as for potentially significant additional liabilities for damages and adverse legal costs. An employee who is an additional respondent to discrimination proceedings brought against their employer may also seek an indemnity against any resulting compensation award, since liability for such awards is joint and several, and employment tribunals have no power to apportion liability between respondents ( London Borough of Hackney v Sivanandan & ors [2011]).

 

 

Additional Info

  • Case(s) Referenced:

    Coulson v News Group Newspapers Ltd [2011] EWHC 3482 (QB)

    London Borough of Hackney v Sivanandan & ors [2011] UKEAT/0075/10/CEA

    Mulcaire v News Group Newspapers Ltd [2011] EWHC 3469

Last modified on 24 June 2015