This paper re-examines the basis of the common law rule that an unlawfully dismissed or terminated public servant cannot claim both reinstatement and general damages for mental stress in an action challenging the wrongful dismissal or termination. More than a century after the English House of Lords’ decision in Addis v Gramophone that an unlawfully dismissed or terminated servant cannot claim both reinstatement and general damages for mental stress in an action challenging the wrongful dismissal or termination, the debate still rages. Lord Collins dissenting view in Addis’ case has now resonated in statute, not only in Nigeria but in some other commonwealth countries that inherited the common law tradition from Britain. This paper argues that the common law rule established in the case is anachronistic, no longer valid nor sustainable, and calls for a jettisoning of the rule in favour of allowing both reinstatement and general damages for psychological injuries in deserving cases. Section 8 of Nigeria’s Employees’ Compensation Act provides a basis for such reform.