Ireland's largest insurance company RSA has confirmed that it has settled its legal dispute with former chief executive Philip Smith, who had been awarded €1.25 million last year by the Employment Appeals Tribunal relating to his departure from the company in controversial circumstances in late 2013.
RSA had appealed the terms of the award to the Circuit Court and the case was listed for Thursday. However, RSA confirmed that its case with Mr Smith has been resolved.
“RSA can confirm that it has settled its case with former Irish CEO Philip Smith,” the British insurer said. “The Circuit Court in Dublin has today ordered by consent that RSA’s appeal be allowed, with the effect that all findings in the earlier decision of the Employment Appeals Tribunal have been vacated. The terms of the settlement are confidential.”
Mr Smith was one of three executives suspended by RSA in Ireland in 2013 after certain financial issues emerged at the insurer. The other two – former claims director Peter Burke and the chief financial officer Rory O'Connor – also took cases against RSA to the EAT but both were settled without the need for a hearing.
This agreement with Mr Smith draws a line under this saga for RSA, which is believed to have incurred legal costs of more than €300,000 in relation to Mr Smith’s EAT case.
Mr Smith tendered his resignation to RSA on November 27th, 2013, on the basis that his fate was already “pre-decided”. Issues had earlier emerged around various financial issues that resulted in RSA having to inject more than €200 million in capital into its Irish subsidiary.
The tribunal’s record award represented two years’ earnings for Mr Smith, the maximum allowed by the tribunal.
Mr Smith told the tribunal at his hearing last March that, since leaving RSA, he had earned just €25,000 gross in consultancy fees and was relying on the support of family and friends.
He claimed RSA had obstructed his attempts to secure consultancy work, an allegation the insurer denied.
Tribunal chairwoman Niamh O’Carroll Kelly said his suspension on November 8th, 2013, on national television was like taking a “sledgehammer” to his reputation and to his “prospects of ever securing employment in this industry again in Ireland, in Europe and very possibly beyond”.
On July 6th, RSA announced plans to appeal the tribunal’s decision, saying it “fundamentally” disagreed with the judgment and would seek “redress through the courts”.
