Fired CAL CEO demands explanation for dismissal; calls firing unlawful exercise of power

A lawyer for fired Caribbean Airlines (CAL) CEO Ian Brunton dated November 28, 2010 has asked the company to immediately "recant" its decision as being improper and an unlawful exercise of power.

The airline's chairman, George Nicholas, signed Brunton's letter of dismissal, which was dated November 26, 2010.

Attorney Seenath Jairam's letter, which is addressed to the airline's Corporate Secretary and copied to each member of the CAL board, gives the airline until 10 am Tuesday to act, failing which it has stated that "we will advise our client to pursue all available options simultaneously."

Jairam's letter outlines Brunton's "sterling" achievements as head of the airline since his appointment in 2009 and states "...it is with astonishment and disappointment that our client received a letter purporting to dismiss him on 26 November, 2010 under the hand of the newly elected Chairman of the Board, Mr. George Nicholas III."

The letter adds, "We share the reported concerns of the line minister that an apparently unilateral decision to terminate our client's services was undertaken.

"Our client's instructions are that at the last meeting of the newly appointed board held on November 15, 2010, at which our client was present, no issue was raised at all as to his performance as CEO. 

"In fact from his commencement of his duties as CEO, and even up to the time of writing, our client has never been given a letter of concern not has anyone raised any issues concerning his performance which as far as our instructions are concerned have been nothing but excellent."

Jairam stated further that no further board meeting was held since November 15 and it would seem that Brunton has become "an unwitting casualty of a disagreement between Mr Nicholas and the line minister" over the acquisition of aircraft from ATR "with Mr Nicholas having a preference for a competing supplier, Bombardier."

The deal with ATR was approved by Cabinet in September and ATR has been paid a deposit of US$1.8 million, which it stands to lose if the deal is scuttled.

The letter on behalf of Brunton states:

• Any decision to fire Brunton would require the board's approval and any unilateral decision on his dismissal would be unlawful "on settled company law principles"
• Any decision to terminate Brunton's employment to retaliate against the line minister without heed for the "consequences for the airline is a clear breach of the fiduciary obligation of a board member and a flagrant act of corporate misconduct"
• The decision to fire Brunton was a breach of the well-established principles of mutual trust and confidence and obligations of the employer to act fairly and in good faith

The letter states further that the manner is which Brunton has been treated is not in keeping with established corporate practice. 

In addition it says that Brunton was not given any reason for the "abrupt and intemperate manner" in which he was removed from office. 

It says Brunton's record "amply demonstrates that there could be no good reason."