Liability for theft by employee


Liability for theft by employee

In the 2010 case of Brink's Global Services Inc and others v Igrox Ltd, the Court of Appeal held that Igrox was vicariously liable for the theft of a third party's goods by one of its employees.

Brink's had a contract to transport a container of 627 bars of silver to India. As the bars had been packed on wooden pallets the container had to be fumigated. It was taken to a terminal where it was opened by two Igrox employees. Mr Renwick and another entered the container, then resealed it. Mr Renwick returned later and stole 15 silver bars. When the High Court held that Igrox was vicariously liable for the theft of the silver bars, it appealed. The Court of Appeal dismissed the appeal.

This is another case of a Court apportioning responsibility for a loss to an employer. Most employers remain at risk for thefts by their employees so adequate insurance should be put in place to meet any potential claims. Whilst readers may not be transporting bars of silver, they may have customers' goods under their care.

This was first published in February 2011

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