A managing director of three financial institutions located in the Irish Financial Services Centre (IFSC) in Dublin, who claims he was instructed from Germany to implement tax evasion practices and was placed on a "hitlist" for dismissal after he expressed concerns about these, secured a High Court order yesterday restraining his dismissal.
His employers were also directed to continue paying him sick leave until his six month entitlement to such pay expires in September.
Mr Justice Kelly granted the interlocutory orders to Mr Patrick von Gordon, of Victoria Village, Rathgar, Dublin against Helaba Dublin Landesbank Hessen-Thuringen International, Heleba International Finance plc, Landesbank Hessen-Thuringen Girozentrale and Helaba Finance BV - all with offices at the IFSC.
Mr von Gordon is managing director of the first, second and fourth defendants and general manager of the third. He alleges his sickness is attributable to the stress of being instructed to implement tax evasion practices.
The four defendants have denied as "outrageous" Mr von Gordon's claims.
Giving his decision, Mr Justice Kelly said Mr von Gordon had worked with the defendants since 1999. It was clear he had concerns about what he regarded as a culture of non-compliance with tax and banking regulations. He had made efforts to have those issues attended to and redressed and believed that, as a result, he was put on a "hitlist" for dismissal.
He had also alleged that other senior officials had left their employment because of the alleged practices.
By 2000, he believed the situation with his employers was grim and he would be a "scapegoat".
Because of his working conditions, he claimed to have been caused stress and constant headaches. He had taken sick leave from May to August 2002. He became ill again in October 2002 and had been on sick leave since then except for a period when he took annual leave.
The judge said Mr von Gordon had said in an affidavit that his medical advice was that the continuous stress was the cause of his illness. He had said he had tried to rectify the issues which he regarded as the cause of his stress but was rebuffed.
Mr von Gordon had said his efforts were confounded by a unilateral instruction from Germany to implement practices and financing structures that put the whole taxation structure of the Irish operations and its German parent at risk and which he feared was illegal, as representing tax evasion from the German revenue authorities.
He also said he suffered stress by being compelled by senior banking colleagues at meetings in Germany to destroy and shred papers he had produced and which dealt with his concerns.
Mr Justice Kelly said the defendants denied these claims in the strongest terms and had pleaded Mr von Gordon had wilfully distorted events to create a misleading picture.
They said his illness was unconnected to work, that he was trying to embarrass the bank ,and had concocted the connection between his illness and work to get a larger termination payment. They claimed he had agreed severance terms last March but Mr von Gordon denied that.
The defendants also said they had written to him asking him to withdraw or substantiate his claims but he had done neither.
The defendants had written to Mr von Gordon's solicitors stating his allegations amounted to serious misconduct and failure either to withdraw or substantiate those claims would lead to disciplinary steps. They had ceased to pay his salary from June 15th, a move that Mr von Gordon claimed was a vindictive tactic.
The judge said there was a serious conflict between the parties that he could not resolve, and nor was he required to resolve, at this interlocutory stage. Both sides claimed bad motives on the part of the other.
He was satisfied Mr von Gordon had established serious issues to be tried regarding his claims that the defendants had contrived a situation where he feared they were preparing to dismiss him and regarding the defendants' obligation to continue paying his salary.
The judge added he was satisfied damages would not be an adequate remedy for Mr von Gordon.
He held the balance of convenience lay in granting injunctions restraining the bank from dismissing Mr von Gordon and directing it to pay his full entitlements, to include from June 15th.
Mr von Gordon was to be paid for six months sick leave, which would expire in September. The judge recommended Mr von Gordon make an application under the defendants' income continuance scheme.
The judge also made directions aimed at ensuring the hearing of the full action in October.
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