Philip Nolan: SFI was in ‘serious and immediate peril’ due to managerial breach, High Court hears

The extent to which Science Foundation Ireland (SFI) was in “serious and immediate peril” because of a breakdown in relations between its director general Prof Philip Nolan and senior managers has emerged in the High Court.

Prof Nolan is challenging his dismissal without notice as director general of the State agency and has rejected findings against him in relation to inappropriate behaviour in his dealings with its executive management team, following five protected disclosures made against him by senior staff.

SFI board chairman Prof Peter Clinch rejected as a “conspiracy” theory Prof Nolan’s claim there was an “orchestrated” effort to remove him from the organisation. The board had decided to dismiss him without a disciplinary process because of the level of dysfunction in the organisation, he said.

In an affidavit, Prof Clinch said the board was supportive of Prof Nolan when he assumed his role, but that he had “struggled” in the first few months. The court heard that within weeks of being appointed in January 2022 he had informed the board by email he wished to also serve as chairman of St James’s Hospital, Dublin, but this had gone down badly.

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Mr Clinch said the board noticed a “clear trend” that the director general “struggled with his emotions when challenged, or when he did not get his way”. There was a “dire” situation and a level of dysfunction developing at SFI due to the apparent breakdown of trust between Prof Nolan, senior management “and beyond”.

[ Prof Philip Nolan dismissal: Minister for Innovation intervened in dispute between SFI and director general ]

The board was not attempting to undermine the Government decision to amalgamate SFI with the Irish Research Council, as Prof Nolan claims, the chairman said. Prof Nolan was appointed “CEO designate” of the new agency last year.

These “extraordinary allegations and conspiracy theories completely ignore the fact that the situation in SFI was utterly unsustainable”, Prof Clinch said. Prof Nolan’s failure to bring people with him put the operational efficacy of SFI into “serious and immediate peril”.

While the amalgamation added to governance challenges, he said SFI’s problems had originated “well before” the merger was announced. The chairman also denied there was a lack of support for the project, saying he witnessed “clear enthusiasm” on the part of members of the executive committee.

[ Issue of Philip Nolan’s reputation amid SFI dispute ‘at very highest level of seriousness’ ]

Responding to the application to reinstate Prof Nolan, Mark Connaughton, senior counsel for SFI, said this was “unworkable” as he had “lost the dressingroom, plain and simple”.

While Prof Nolan’s legal team argued the board had overreacted to a critical letter he wrote in February 2022, which he regrets and apologised for, Mr Connaughton said the reaction demonstrated this board required “exacting standards”.

The court heard Minister for Research, Innovation and Science Patrick O’Donovan intervened in the dispute to suggest mediation should be undertaken to address outstanding issues.

[ What next in the Philip Nolan saga? ]

Padraic Lyons, senior counsel for Prof Nolan, said it was “striking” that there was a “blanket refusal” from the State-funded research agency in response to his client’s repeated offers to engage in mediation.

Mr Justice Rory Mulcahy said he would issue his decision next week.

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