Former bauxite overseas representative awarded over US$200,000 on appeal
Stabroek News
March 22, 2004
A former bauxite executive has won, on appeal, a settlement exceeding US$200,000 from his employers, the Linden Mining Enterprise Ltd (Linmine) and the Bauxite Industry Development Company Ltd (Bidco).
In July 1998, James Ramsahoye, former overseas representative for Bidco, subsidiary of Linmine, filed a lawsuit against his employer seeking damages in excess of US$500,000 for breach of contract among other things including all remuneration and entitlement to pension and/or gratuity. Further, Ramsahoye sought all of the previously mentioned benefits which may have been lost as a result of the repudiation of his services.
Justice Oswell Legall, after hearing and examining evidence provided in the matter by both parties, had dismissed Ramsahoye's petition.
According to the facts of the case, the plaintiff was employed with the Guyana Bauxite Company or Guybau in 1972 and was stationed at Linden as a marketing analyst. He was subsequently transferred to the head office in Georgetown. Shortly afterward, he was sent to Guybau's New York office and while there, he was promoted to general superintendent. In December 1986, he was transferred to the Brussels, Belgium office where he functioned as marketing overseas representative. With each promotion, Ramsahoye's remuneration increased. When Guybau became Bidco, the plaintiff's emoluments were subsequently changed to US currency only and he was receiving US$190 less at this stage. Previously, the plaintiff's emoluments had two components, that is, he received local and US currency.
In early 1998, the management of Bidco decided to cease operation of its Brussels office and Ramsahoye was offered the position of Deputy General Manager, Marketing at Bidco's Linden office. But Ramsahoye returned home to Guyana and after taking sick leave, later took vacation leave without taking up the new appointment offered. Bidco then contacted him and it considered his services repudiated.
In Ramsahoye's view, the defendants had committed a breach of contract since the 1990 contract had not provided for termination but had provision for retirement in the normal course of employer/employee relationship.
Justice Legall, in his ruling, had noted that Ramsahoye's re-assignment to Linden had been lawful and reasonable and that the plaintiff had made it clear that he had no intention of obeying the orders of his employers, the defendants, in taking up the position of deputy general manager at Linden. He had dismissed the matter agreeing that Ramsahoye's actions had amounted to repudiation.
Justice Legal also pointed out in his judgement that although the plaintiff had written a letter expressing several concerns in relation to the proposed re-assignment and promotion he had accepted the closure of the office in Brussels and the ending of his position as an overseas representative for Bidco was "brought to an end by reason of the reorganisation of the company's affairs."
In response, the company had written to Ramsahoye informing him that his expertise and skills were needed and best utilised in the company's marketing division in Linden and as such he had been appointed deputy general manager, Marketing.
But the plaintiff had insisted that the letter in 1990 had given him a new contract of employment as overseas representative since for the first time, his emoluments had been set in US dollars only and secondly reduced the total emoluments. The payment in US dollars only and a reduction of his emoluments meant, according to the plaintiff, that he had accepted a new contract. Therefore when the defendants closed the Brussels office, he claimed, they committed a breach of contract and since he was entitled to remain in the position as overseas representative until the age of retirement (November 2001), he was entitled to damages for breach of contract, severance pay benefits and the other claims including pension benefits.
Following Justice Legall's ruling, Ramsahoye sought redress in the Court of Appeal, which found in his favour, ordering that Linmine and Bidco pay him the equivalent in local currency of in excess of US$200,000 plus interest at the current exchange rate.
The judgement, handed down by Justices of Appeal Claudette Singh and Nandram Kissoon and Justice Claudette La Bennett, nullifies the earlier decision by Justice Legall.
Bidco and Linmine are further directed to pay pension benefits, in accordance with the aforementioned formula, US$4330 x 1.75% x 26 years and 5 months. Additionally, Bidco and Linmine are ordered that costs awarded to the plaintiff be taxed certified fit for one Senior Counsel and one Junior Counsel, and the original sum awarded be paid at a rate of 4% per annum from the date of filing in July 1998.