Watson v Hemingway Design Ltd and Others: EAT 16 Dec 2019

Practice and Procedure – Postponement or Stay – Transfer/Hearing Together
An employment judge had erred in law in deciding that he lacked jurisdiction to determine a claim under the Third Parties (Rights Against Insurers) Act 2010 (the 2010 Act) arising between the claimant and the insurer of the insolvent first respondent. The employment tribunal was ‘the court’ within the meaning of section 2(6) of the 2010 Act and therefore had power to make declarations under the 2010 Act as to the liability of the insurer as well as of the insured.
The employment judge’s decision to stay the claimant’s claim under the 2010 Act against the third respondent insurer was therefore set aside and the stay lifted.
The better view, expressed obiter as the point had not yet arisen, was that the arbitration clause in the contract of insurance between the insolvent first respondent and its insurer was rendered void by the anti-avoidance provisions in section 203 of the Employment Rights Act 1996 and section 144 of the Equality Act 2010, since the arbitration clause would, if given effect, limit the operation of the provisions of those Acts.
[2019] UKEAT 0007 – 19 – 1612
England and Wales

Updated: 29 March 2021; Ref: scu.646870