The High Court has awarded quarry contractor Michael Hennigan €200,000 in damages after finding that Roadstone Wood Limited breached an oral agreement to retain him for five years while he paid for a new loading shovel.
Mr Justice Eagar found that Mr Hennigan bought the Komatsu loader in 2007 after receiving assurances that he would continue working at Roadstone’s Bunratty quarry during the finance term. The judge preferred Mr Hennigan’s evidence about the discussions with production manager John Alderson and quarry manager Lee Hankinson. Roadstone disputed that any guarantee or binding commitment had been made.
Mr Hennigan had worked as an independent contractor at the quarry since 2000. He said that in 2007, as work was exceptionally busy, Mr Alderson asked whether he would consider buying a new loader. According to Mr Hennigan, they agreed a rate of €41 an hour and five years’ work. He said Mr Hankinson later confirmed the five-year term and told him to go ahead and purchase the machine.
The Komatsu cost €284,350. Mr Hennigan traded in his existing Volvo loader and financed the remaining €271,741.80 through 60 monthly instalments. Roadstone continued to use him at the quarry until December 2009, when he was told there would be no further work. The company’s solicitors denied that any inducement or guarantee had been given, while acknowledging that he had consulted management about future work before taking on the financial commitment.
The judge said Mr Hennigan’s account was clear and that the €41 hourly rate was consistent with his evidence. He also noted that Roadstone did not call Mr Hankinson, whom the court understood to have authority to agree rates and conclude agreements. Evidence about a proposed arrangement for Roadstone to lease the loader in 2008 also supported the judge’s conclusion that the company was aware of an obligation to Mr Hennigan.
In assessing damages, the court considered the outstanding ACC finance balance, the loader’s sale proceeds, Mr Hennigan’s later income and his accountants’ loss estimate. It reduced the proposed loss figure in light of the recession and the likelihood that he would not have worked 50 hours a week throughout the remaining term. The €200,000 award covers the two and a half years left on the agreement and is subject to applicable general taxes.
The court declined to award general damages, including for the personal pressure Mr Hennigan described after losing his work. The judgment addresses the damages sought in the contract claim; it does not record a separate order for costs.