Out-Law News

Damning reference from employer ignites £10 million lawsuit


A former IT project manager is suing Perot Systems for £10 million in England's High Court, claiming that a damning reference from the global consultancy founded by former presidential candidate Ross Perot cost him his job at Deutsche Bank, according to reports by The Times and ZDNet.co.uk.

It appears that Michael Johnson was dismissed by the Bank in 2001 because of the reference. He first brought an unfair dismissal action against the Bank – but lost his claim because the tribunal decided that the Bank acted properly on the basis of the reference. According to Johnson, he did not know about the reference until the tribunal action. He then decided to sue Perot Systems.

A former colleague at Perot Systems, Simon Hull, wrote in the reference for Deutsche Bank that working with Johnson was "the most horrendous episode that I have ever experienced in my working life." The reference also alleged that Johnson had been "kicked out" from another bank for obtaining a mortgage fraudulently. Hull is named as a co-defendant.

Any reference which suggests misconduct or lack of professional competence is potentially defamatory. A well-known US example involved a case against Diana Ross in which the singer was found liable for defamation after writing a reference for a former assistant which stated: "If I let an employee go, it's because either their work or their personal habits are not acceptable to me."

Michael Johnson's hearing is expected later this year.

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