Case notes: City and County of Swansea v Johnson (High Court (Chancery Division)) November 1998

United Kingdom

City and County of Swansea v Johnson (High Court (Chancery Division)) November 1998

The case involved the making of an injury allowance award by the local council of just £50 a year. The Pensions Ombudsman was wrong to require the local council to reconsider the award 'in order to meet the complainant's legitimate expectations'. In principle, a token award of £50 would not be manifestly unreasonable if the relevant body took the view that a person was entitled to a payment in principle but the circumstances did not justify the payment of a substantial amount. The Ombudsman did have jurisdiction over injury allowance arrangements under the Local Government Superannuation Regulations as they fell within the wide definition of occupational pension scheme for this purpose. However, the Ombudsman had no evidence in this case to conclude that the complainant's employment had been terminated by reason of his illness rather than redundancy, so this constituted an error of law entitling the court to intervene. This question was remitted to the Ombudsman. Furthermore, in the absence of very exceptional circumstances, the Ombudsman should not make an award in excess of £1,000 as damages for distress - the original award in this case had been £5,000.