An unconventional recent case is
likely to interest those in receipt of employment law advice from
Employee Management Ltd (http://www.employeemanagement.co.uk)
who have wondered about an employer's rights with regard to access to emails
that may not be stored on company systems. In the case Fairstar Heavy Transport
v Adkins, the employer requested a court order requiring access to emails
relating to the firm's business to be granted by an ex-CEO.
There was an unusual set of facts to
this case. Although the chief executive, Adkins, lived in England, the company was incorporated in the Netherlands.
The set-up of company communications involved all emails addressed to the chief
executive being forwarded to Adkins, prior to the deletion of the emails from
the company system. This meant that storage of the emails was on a personal
computer at Adkins' home.
At the time of the appointment of
Adkins as chief executive, he was not employed by the company, instead having
been engaged as a consultant through his own company, by Fairstar. The employer
in the case requested that he provide the emails after his engagement was
terminated, only for him to refuse.
The High Court therefore had to rule
on the preliminary issue of whether Fairstar could make a proprietary claim to
the content of the emails in Adkins' possession, and if this was the case,
whether it could be enforced. The High Court decided against the company having
such a claim, on the grounds that it was not possible to regard the information
contained in the emails as a form of property.
It was decided by the Court of
Appeal, however, that the wrong question had been asked of the court by the
parties. Fairstar did have the legal right to inspect and copy the emails,
given that the chief executive was a former agent of the company. That the
agency had been terminated did not mean that termination had also occurred to
the duty binding on Adkins as a consequence of the agency relationship. This
gave the company entitlement to check the emails.
The lesson of the case for observing
HR support clients is that
it is important for employment
contracts, or contracts between companies and consultants, to incorporate
express provisions addressing the matter of who owns emails that may be generated
on the employer's behalf, but stored off-site.
Such provisions could take the form
of a contractual obligation on the employee's part to ensure the backup of
emails on company servers, or to provide copies of the emails on the
termination of the contract. That the court found in favour of the employer,
despite the firm not arguing that the emails contained confidential
company-owned information or that the ex-CEO had breached his fiduciary duties,
should comfort many businesses.
Nonetheless, there remains a great
value to companies consulting a firm like Employee Management Ltd (http://www.employeemanagement.co.uk)
in their alteration of employment
documentation to deal with the issue, to ward off the possibility of
similar disputes in the future.
Editor’s
Note: Employee Management Ltd (http://www.employeemanagement.co.uk) are
represented by the search engine advertising and digital marketing specialists
Jumping Spider Media. Email: info@jumpingspidermedia.co.uk or call: +44 (0)20 3070 1959
/ +34 952 783 637.
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