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Contracts of employment: "Stigma" damages not recoverable

This report relates to 1 case(s)

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    Mahmud v Bank of Credit & Commerce International SA [1996] ICR 406 CA (0 other reports)

A claim for damages for loss suffered as a result of the stigma attached to having worked for an employer was in reality a claim for damages for injury to the employees' previously-existing reputations, the Court of Appeal holds in Mahmud v Bank of Credit & Commerce International SA (in compulsory liquidation). Therefore, in line with established case law, no damages were recoverable. Only in a limited number of situations, such as where the nature of the contract is one to provide for a particular status, is the recovery of such damages permitted.