‘Dishonest and Corrupt’ Companies, Employees and Stigma Damages

If a company becomes known as a corrupt and dishonest one with the result that employees dismissed by the company's liquidators find it more difficult than they would otherwise have done to obtain fresh employment, may they claim compensation for the loss of reputation consequent on being associated with a corrupt and dishonest company which has led to their problems in the labour market? The modern term for such compensation is ‘stigma damages’. The House of Lords in Malik v BCCI SA [1997] 3 All ER 1 (sub nom. Mahmud v BCCI SA [1997] 3 WLR 95) was called upon to answer this question.