A London court of appeals rejected claims of a former Credit Suisse employee arrested in Romania for alleged espionage.
A former Credit Suisse banker sentenced to ten years in prison in Romania in 2013 for alleged espionage had his appeal dismissed by a London appeals court, «Reuters» reported.
Vadim Benyatov sued Credit Suisse seeking compensation for $86 million in lost earnings, saying he was wrongfully convicted while working. Since his dismissal in 2015, he was unable to find work due to the conviction.
Energy Specialist
Benyatov was a former head of European emerging markets focusing on privatizations in the energy sector. According to «Reuters», the case was dismissed because an employer cannot be held liable if an employee suffers at the hands of a third party just because they are doing their job.
Limited Liability
According to the judges, a fundamental difference exists between the economic position of the employer and the employee, although, the employee is compensated by a «duty of care» and protection against dismissal.
Therefore, the employer cannot be made the employee's insurer for all damages the employee suffers as a result of his work, according to the ruling.
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Benyatov, who earned an annual 450,000 pounds ($542,000) plus bonuses, was arrested in 2006 along with two colleagues in connection with Romanian privatization. He spent nearly two months in jail before being tried and convicted in absentia for alleged espionage and membership in a criminal organization in 2013. Benyatov did not serve the sentence, which was reduced to four and a half years in 2015.
Credit Suisse initially believed his behavior to be in line with standard business practice, and supported him and paid for his defense and appeals, including to the European Court of Human Rights. Nevertheless, Credit Suisse challenged his claims of duty of care breaches, negligence, and the causation of loss and damage.
