Taff Vale Railway Co. v. Amalgamated Society of Railway Servants
- Taff Vale Railway Co. v. Amalgamated Society of Railway Servants
"Taff Vale Railway Co. v. Amalgamated Society of Railway Servants" 1901 AC 426, commonly known as the Taff Vale case, was a suit brought by the Taff Vale Railway Company in 1901 against the trade union, the Amalgamated Society of Railway Servants, who went on strike. The union wanted to force the company to recognise it.
Previously it had been thought that trade unions could not be sued, because they were unincorporated entities, under the law of trusts. But the House of Lords ruled that if a union is capable of owning property, and capable of inflicting harm on others, then it is liable in tort for the damage it causes. Here, the damage was said to be the economic loss caused to the company when the employees broke their contracts of employment to go on strike.
The company was successful in suing for damages. It was awarded £23,000 [about £1,700,00 at 2007 prices] plus damages, reaching a total of £42,000. [about £3,104,000 at 2007 prices] This set the precedent that unions could be held liable for damages resulting from actions by its officials. Balfour's Conservative government later set up a Royal Commission - a decision that was unpopular among trade unionists.
The decision was a turning point for the newly formed Labour Representation Committee. Affiliation from trade unions to the LRC stood at 350,000 in 1901 but rose to 450,000 in 1902 and 850,000 in 1903. A mass movement was being formed that led to the creation of the modern Labour Party (UK). [ Wright T. & Carter M,(1997) "The People's Party" Thames & Hudson, ISBN 0-500-27956-x ]
Inflation
External links
* [http://www.spartacus.schoolnet.co.uk/Ldisputes.htm schools-age website]
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