Former CEO: Dairygold branded me a thief

In a letter written after he was allegedly dismissed from the co-operative society, former Dairygold CEO Jerry Henchy claimed he had effectively “been branded a ‘thief’ by Dairygold”.

In the letter, read out in the High Court yesterday, Mr Henchy, who had been a joint CEO of Dairygold and Reox Holdings PLC, claimed his ability to represent the interests of Reox shareholders, most of whom were also shareholders of Dairygold, had been severely undermined by Dairygold.

“Effectively I have been branded a ‘thief’ by Dairygold and, at the same time, I am asking the members of Dairygold and the Dairygold board members to put their trust in me to represent their best interests in my capacity as CEO and director of Reox, and to sit alongside these same people at the Reox AGM who removed me from my position as CEO,” wrote Mr Hency.

In the letter to Reox Holdings on Mar 6, 2009, almost two months after he was allegedly dismissed from Dairygold, Mr Henchy sought assurances from Reox in relation to his position as CEO there, and said he would be willing to play his part in the matter of pay cuts.

He said he wanted an assurance that, for the years ahead, the actions of Dairygold would not have any adverse affect on Reox’s ability to pay his salary and benefits.

Ten days later after a board meeting, Reox chairman Flor Riordan told Mr Henchy he was being made redundant as Reox CEO.

Mr Henchy told the High Court yesterday that he did not accept he had been made redundant or that his position had been made redundant as part of a cost-saving measure, as alleged by Reox.

Mr Henchy, aged 48, a father of three from Kilmallock, Co Limerick, was continuing his evidence in his action against Dairygold Co-operative Society Ltd over the alleged termination in Jan 2009 of his €560,000 job, plus bonuses and allowances. Mr Henchy has not worked since.

He is claiming €8m damages, alleging his employment as CEO was wrongfully terminated for “spurious” reasons purporting to relate to €159,000 owed on his personal farm account with Dairygold. The real reason was an orchestrated campaign involving some board members, Mr Henchy alleges.

The damages claim includes a claim for alleged defamation, libel, and slander. Mr Henchy claims his professional and personal reputation was damaged by the alleged leaking to the media by someone within the society of the Jan 19, 2009, minutes of meetings of the Dairygold board and of its audit committee.

The claims are denied by Dairygold.

Yesterday, Patrick Hanratty SC, for Mr Henchy, said he would also ask Mr Justice Daniel Herbert at the end of the case to make a finding that there was no true redundancy from Reox in Mr Henchy’s case.

In a Mar 16, 2009, letter from Mr Riordan, which was read to the court, Mr Riordan said the Reox Board had decided to proceed with restructuring of a number of positions in an effort to make €1.2m savings.

As a result, he said in the letter to Mr Henchy, it was decided the functions of the chief executive, chief financial officer, and the company secretary would be merged into two posts to incorporate those functions carried out by the CEO. Mr Riordan said Reox did not have other suitable alternative employment for Mr Henchy.

The case continues next week.