The High Court awarded Michael Browne €60,000 in damages after Iarnród Éireann wrongfully refused to honour an early retirement package he had accepted in September 2006. The award compensates him for being required to work three further years, rather than for direct financial loss.
In an earlier judgment, the court had found that the company breached its contract with Mr Browne, a long-standing employee. Mr Browne, then aged 62, returned to work and remained there until September 2009, when he retired at the compulsory retirement age.
The package would have provided a voluntary severance payment of €148,157 and a monthly annuity of €2,174. Mr Browne sought the annuity and a severance amount of €78,249 for the three years up to retirement, plus interest as a contract debt.
The company opposed that claim, arguing that payment would amount to double recovery because Mr Browne had worked for three more years and his retirement benefits had increased. The judgment noted that he earned just over €300,000 during those years, his capital sum rose by €10,000 and his annual annuity increased by €2,800.
Mr Justice Hogan held that Mr Browne could not recover the package as a debt. Given the company’s refusal to cooperate, Mr Browne had been compelled by his circumstances to return to work, which the judge treated as acceptance of the company’s repudiation. His remedy was therefore limited to damages for breach of contract.
The judge said Mr Browne suffered no direct financial loss from working the extra years: his lump sum and final pension were enhanced. The loss was instead the deprivation of the opportunity to retire at 62 and enjoy the rest and reduced stress associated with early retirement. The judgment described this as intangible and difficult to measure, but real.
The court awarded €20,000 for each of the three years Mr Browne was required to work, a total of €60,000. The supplied judgment excerpt records the proposed award; it does not state a separate formal order or address the claim for interest in its concluding passage.