Ratio Decidendi
An employer owes a duty of care to an employee or former employee when providing a reference. A negligently prepared reference causing economic loss to the subject is actionable in negligence.
Facts
Mr Spring was dismissed and his former employer provided a reference to a prospective employer that was negligently inaccurate and highly damaging. He was unable to obtain new employment.
Judgment Summary
The House of Lords held the employer owed a duty of care in preparing the reference. The relationship was sufficiently proximate and it was fair, just, and reasonable to impose liability for a carelessly prepared reference.
Key Quotes
"It would be wrong to deny the existence of a duty of care when the consequences of doing so would be to leave a victim of negligence without a remedy."
— Lord Goff
Subsequent Treatment
Leading authority on employer's duty of care in providing references.