CLOSE to $1 million in damages has been awarded to a former senior employee at Capildeo Lands Ltd and Prism Trust and Finance Company Ltd after the High Court found that he was constructively dismissed and defamed by his employers.
The ruling, delivered on June 1 by Justice Robin Mohammed, awarded Michael Khan a total of $941,561.87 in damages, interest and prescribed costs following a civil claim arising out of his abrupt removal from both companies in April 2019.
Khan, a construction and land development professional, had served as managing director of Capildeo Lands and chief executive officer of Prism Trust. He sued Capildeo Lands, Prism Trust and their chairman, Carlton Reis, alleging constructive dismissal and defamation.
In his 45-page judgment, Justice Mohammed found that the actions of the companies amounted to a fundamental breach of Khan’s employment contracts and that Reis defamed him during a meeting that was overheard by other employees.
In relation to Capildeo Lands, the court awarded Khan $163,050.23, comprising general damages, severance pay, vacation pay and an entertainment allowance. Against Prism Trust, Khan was awarded $142,694.07 for general damages, severance pay and vacation pay.
The court also made an order against Reis, ordering him to compensate Khan an additional $400,000 for defamation after finding that statements accusing Khan of stealing were made loudly and in the presence of others.
‘The court finds that the third defendant did defame the claimant with the verbal statements made,’ Justice Mohammed said. He added that the words used would have been understood to mean Khan ‘was a thief’, ‘was dishonest’, and had committed criminal acts of theft or fraud.
The judge further noted Reis’s conduct, particularly given his position as chairman, not only disregarded Khan’s feelings, but ‘ultimately damaged the reputation of the claimant’, who held senior executive roles in both companies.
In addition to damages, the court awarded pre-judgment interest at the rate of 2.5% per annum, calculated at $135,817.57. Prescribed costs in the sum of $104,617.14 were also awarded in Khan’s favour under the Civil Proceedings Rules.
The dispute stemmed from events in early April 2019, when Khan was excluded from company offices, subjected to an audit without being given an opportunity to respond, and later confronted at a meeting where he was publicly accused of wrongdoing.
Justice Mohammed held that these actions breached the implied term of trust and confidence inherent in the employment relationship, finding that Khan had been forced to resign because of the conduct of the defendants.
In addressing the law on constructive dismissal, the judge observed that even relatively minor acts may justify resignation where they form part of a pattern of behaviour, stating that ‘cumulatively, they may amount to a repudiatory breach of the implied term of trust and confidence’.
Khan was represented by attorney Bryan McCutcheon and Andre Rudder; while the companies and Reis were represented by Walede Michael Coppin and Cherneil Peters
