Court of Appeal upholds ruling that former NBS CEO was wrongfully terminated

The Appeal Court on Friday upheld the High Court ruling that former Chief Executive Officer of the New Building Society (NBS) Maurice Arjoon was wrongfully dismissed, but it reduced his pension benefits from $59M to $18.8M

In June 2007, Arjoon was dismissed along with two others following the disappearance of $69 million from the account of Bibi Khan. The men were subsequently exonerated of the charges.

He then moved to the High Court and filed a $550M wrongful dismissal lawsuit against his former employer.

However, in 2017, he was awarded $79,282,801 in outstanding payments and benefits by High Court Judge Brassington Reynolds.

However, Court of Appeal Judge Rishi Persaud had ordered the NSB to pay $59,033,281 for pension and stayed the remaining $20,249,801 which was awarded for severance.

On January 04, 2018, NBS received a court order directing the sum of $59M be paid. The Society and Trust Company later appealed that decision and requested the Court of Appeal to set aside that order.

In delivering the ruling of the court, Chancellor Yonette Cummings-Edwards ruled that Justice Reynolds did not err when he rightfully awarded pension along with severance and benefits to Arjoon.

“As the trial Judge [Justice Reynolds] rightfully found in our view “there is no place for Peter to pay for all or Paul to pay for all in the circumstances.”

Among other things, the Chancellor said that NBS failed to show any evidence that Arjoon misconducted himself or was responsible for the transfer of Khan’s money.

The CoA reduced Arjoon’s pension benefits from $59,033,281 to $18, 817,432. This sum will be subjected to any indebtedness to NBS.

However, the Court ordered NBS to pay Arjoon $800,000 in court costs.

NBS attorney Pauline Chase had asked the court to stay their ruling as she discussed with her client the possibility of appealing the matter to the Caribbean Court of Justice (CCJ).

The Court granted Chase’s request and granted a three-month stay of its ruling.

Arjoon was represented by Edward Luckhoo, SC. The other members of the Appeal Bench consisted of Justice of Appeal Rishi Persaud and High Court Judge Franklin Holder.