Former port CEO to pay $.5m in legal costs

FORMER Port of Port of Spain (PPOS) CEO Colin Lucas has been ordered to pay a little over $.5 million in legal fees in his failed breach-of-contract lawsuit.

Lucas was claiming millions of dollars in unpaid salaries, allowance and gratuities.

Lucas, who is now CEO of the National Carnival Commission, claimed the Port Authority breached its contract when he was told to cease reporting to work, since he was no longer employed there, in 2013.

He complied but felt aggrieved, since he was under the impression he had a contract of employment from March 1, 2013-February 28, 2015.

He sued the authority, claiming he was summarily dismissed, and sought compensation which included salary for the two-year contract period, allowances and gratuity.

However, Justice Margaret Mohammed, in a recent decision, held there was no 2013 contract and ordered him to pay $519,630 to the Port Authority which was set in a budgeted cost order previously granted.

She said she saw no exception circumstance to deviate from the general rule that the successful party was entitled to its costs.

According to the undisputed facts at the trial before the judge, in keeping with provisions of the contract, Lucas notified then chairman Joseph Toney, on December 1, 2012, of his desire to remain in employment.

He met with Toney on January 11, 2013, when the chairman offered him employment and he accepted.

Lucas had 13 days’ vacation leave outstanding on his previous contract and was instructed to take it from March 1, 2013. That decision was changed and Lucas was told he would be paid for the unused days.

He reported to work on March 4, 2013. The authority’s senior legal officer wrote to him asking about the particulars of the alleged 2013 contract, including terms and conditions, and with whom it was negotiated and agreed to.

Lucas did so and was toldthe authority was willing to offer him employment subject to remuneration and other terms after receiving the requisite approval.

The legal officer said the chairman was under the impression that the offer of employment was yet to be negotiated, as the terms and conditions would be different from the 2011 contract, and would require board approval and approval from the Chief Personnel Officer (CPO).

Lucas also received a cheque for his unused vacation days, but disagreed that the 2013 contract did not exist. He also decided to stop reporting for work.

By August 2013, the Works Ministry permanent secretary wrote to the chairman to say the CPO had approved the remuneration package for Lucas for the post of CEO for three years from March 1.

But, by then Lucas had, in May, already sent a pre-action protocol letter seeking $1.4 million for breach of the 2013 contract.

The port authority denied liability on the basis there was no valid 2013 contract and there was no intention, at the time, to enter into one, since there was no properly constituted board and the chairman had no authority to enter into a contract. It also said no remuneration had been agreed to.

In her analysis, Mohammed said Lucas was a very senior officer who worked with the authority from 2011-2013 and would be aware of the importance of obtaining board approval for any contract of employment at the senior managerial level, even if it was an interim contract.

“Further, the claimant knew that any board of the defendant whose term was due to come to an end would be hesitant in making a decision on contracting an officer in a senior management position such as CEO of PPOS,” she said.

She also pointed out that from his own admission, the 2013 contract was not agreed to at the January 2013 meeting, as the position of CEO of the port was new. Under the 2011 contract, he was general manager of the port, and the contract was an interim contract, according to the judge.

She found that there was no valid 2013 contract and held that Lucas failed to prove his case.

She also held he suffered no loss and pointed out that he was paid for the days he actually worked when the 2011 contract expired.

Lucas was represented by Senior Counsel Douglas Mendes, and attorneys Michael Quamina and Gabrielle Gillineau. Senior Counsel Russell Martineau and attorneys Amirah Rahaman and Joel Roper represented the Port Authority.