The High Court has ordered that a company director be paid £35,500 - half his annual basic salary - until after the hearing of his claim that he was wrongly dismissed as contracts manager of a major construction company. Mr Michael J. Hegarty jnr, of Holland Court, Holland Park, Liscannor, Co Clare, brought proceedings against P. J. Hegarty and Sons, Carrolls Quay, Cork. He holds one third of the shares in the Hegarty group of companies. The other shareholders are his brother John and cousin, Patrick J. Hegarty.
Before his dismissal, Mr Hegarty had been paid a salary of £71,000 per annum, an allowance of £10,000 a year for the running of his car and £14,000 a year for entertainment expenses, the court heard. He also received a dividend of £100,000 as his share of profits.
In an affidavit, Mr John Hegarty, managing director of the Hegarty group of companies, claimed his brother was drinking to excess in 1993 and 1994 and was given leave because of his poor performance, regular absenteeism and unacceptable conduct.
Giving judgment, Mr Justice Shanley said Mr Hegarty had been paid his salary since he left for his sabbatical in 1994. He was removed last November. Mr Hegarty claimed his removal was in breach of constitutional and natural justice. His salary of £71,000 was continued from 1994 together with expenses.
Mr Justice Shanley said Mr Hegarty was applying to the court for his retention as contracts manager.
Mr Justice Shanley said he had been told that Mr Hegarty would this year receive a dividend of £125,000 or in excess of £100,000. Mr Hegarty should not be allowed the salary he had received since 1994 in circumstances where, during the entire of that period he had not worked for the company, although the company acknowledged it was partly responsible.
He would allow Mr Hegarty £35,500 of a salary before tax and this should continue to the trial of the action. The company would be entitled to call on Mr Hegarty to work, the judge added.