Henchy settles Dairygold action

Former Dairygold CEO Jerry Henchy has settled his High Court action against the co-operative society over the termination of his €580,000-a-year position, plus bonuses and allowances, almost five years ago.

The company said in a statement no damages had been paid to Mr Henchy but it had made a contribution towards his legal costs.

Mr Henchy, aged 48, from Kilmallock, Co Limerick, had sued Dairygold Co-operative Society Ltd over the alleged termination of his job in Jan 2009.

He sued for €8m damages alleging his employment as CEO was wrongfully terminated for “spurious” reasons purporting to relate to some €159,000 being owed on his personal farm account with Dairygold.

As part of the settlement, statements were read to the court yesterday in which Dairygold said any suggestion the termination of Mr Henchy’s services as CEO arose from financial impropriety or wrongdoing “was and is without foundation”.

“Dairygold reaffirms that the reason for the termination of his services as CEO was not as a result of any financial impropriety or wrongdoing on his part,” it was stated.

For his part, Mr Henchy “confirms that the board, in coming to the decision to terminate his services as CEO, acted in good faith and without malice towards him,” it was also stated.

The statements were read after Tim O’Leary, counsel for Mr Henchy, told Mr Justice Daniel Herbert he was glad to tell the court the case had settled and could be struck out without any further order. Paul Gardiner, counsel for Dairygold, confirmed that was agreed.

Mr Justice Herbert said he would make that order and also discharge all intervening orders.

Mr Henchy was not in court but, in a statement through his solicitor, St John Dundon, said he was “delighted with the outcome of the case and that his good name and reputation have also been fully vindicated”.

The statement also said Mr Henchy “looks forward to the future and wishes to thank his legal team for their work on his behalf”.

The proceedings, which began last July, were entering their 19th day yesterday when the settlement was announced. It followed talks between the sides last week.

The damages claim included a claim for alleged defamation arising from the alleged leaking to the media of the Jan 19, 2009, minutes of meetings of the Dairygold board and of its audit committee. That alleged leaking, it was alleged, led to reports suggesting his employment was terminated due to misconduct and financial irregularities.

Dairygold denied any leaking of board minutes.

In a statement, Dairygold said it was satisfied with the outcome. “The settlement of the legal proceedings involved the payment of no sum for damages to Mr Henchy, Dairygold and Mr Henchy agreeing not to register or execute any costs orders in their favour, and Dairygold paying €196,800 to Mr Henchy’s solicitors by way of a contribution towards his legal costs.”