The High Court has ordered four businessmen to pay former project finance director Joe Simpson €137,533 in employment-related sums and to contribute €24,712 to a pension fund he nominates. It also declared that he is entitled to two-thirds of 5% of the net value of specified development projects, with the amount to be determined after a valuation.
In a judgment delivered on 4 August 2011, Mr Justice Clarke found that the defendants were Mr Simpson’s contracting parties in their individual capacities. The group structure they had intended to establish was not in place during his employment, which ended on 31 October 2008. The court held that the defendants were jointly and severally liable under the contract.
The €137,533 comprises €16,667 in unpaid salary for his final month, €46,154 in lieu of notice and a €50,000 bonus. Although the contract provided for a bonus of up to 150% of his €200,000 salary, performance targets had not been agreed. The judge assessed what a reasonable employer would have paid and awarded the reduced amount in light of difficult trading conditions and limited project finance. No expenses were allowed.
The court also ordered the defendants to pay €24,712 into a pension fund nominated by Mr Simpson. The contract provided for a 10% pension contribution, but no fund had been selected during his employment.
Mr Simpson had claimed €1 million under a separate arrangement connected with the Titan deal. The contract made that payment conditional on the four principals receiving their return on the deal. The judge found that Mr Simpson had tacitly accepted the Titan proceeds being reinvested in other projects and was not entitled to a Titan profit share. The judgment records that the funds were not ring-fenced and that there was no direct agreement on whether he would take his Titan share while giving up any interest in projects funded with those proceeds.
For the other development projects, the contract entitled Mr Simpson to two-thirds of 5% of their estimated net value when his employment ended. The evidence did not allow the court to determine that value. It directed the defendants, at their own expense, to provide a detailed valuation as of 30 October 2008, supported by expert reports where appropriate. If Mr Simpson accepts it, his share will be calculated on that basis. If he disputes it, further court hearings may be needed; the costs of those hearings will ordinarily follow the outcome.