Former Permanent TSB boss says he is owed €866k

Former Permanent TSB chief executive David Guinane has claimed before the High Court he is entitled to a severance payment of over €866,000 following his departure from the bank in 2012.

In his action, Mr Guinane, who worked for PTSB for more than 25 years, makes several claims against the bank, including that it is in breach of contract, and that it denied him fair procedures during his departure.

He also claims that he has a contractual right to a payment under the bank’s severance scheme, known as a voluntary severance scheme.

He further claims his reputation was damaged by his former employer, that the bank was in breach of its duty towards him, and was negligent, and is seeking damages including punitive and exemplary damages.

PTSB denies the claims and says Mr Guinane received what he was entitled to when he was made redundant. Opening the case yesterday, Paul Anthony McDermot SC, for Mr Guinane, said his client was chief executive of Permanent TSB when it was part of the Irish Life & Permanent Group.

After the group was recapitalised by the State for €4bn in 2011 the banking section was separated from Irish Life as part of the restructuring of the organisation.

As part of the restructuring, all senior positions in the banking entity were advertised. Counsel said this was a process where Mr Guinane, who had always been highly professional and a dedicated employee, had been left humiliated.

The bank denies the claims, including that Mr Guinane is entitled to a payment under the voluntary severance scheme after he was made redundant.

The case before Ms Justice Leonie Reynolds continues and is expected to last for eight days.

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