US executive settles court case against Esat for `around £4m'

A US telecommunications executive is believed to be £4 million richer following the "amicable" settlement yesterday of his High Court action against Esat Telecom for alleged wrongful dismissal and breach of contract. The amount of the settlement for Mr Dan Rogers was not disclosed in court but is understood to be in the region of £4 million.

After the settlement of the case was announced yesterday afternoon, a clearly ecstatic Mr Rogers said he was "delighted that this matter has been resolved". Accompanied by his wife Marsha and solicitor Mr Clifford Sullivan, he added: "We have some serious celebrating to do."

Mr Rogers had claimed he was "love-bombed" by Esat chairman Mr Denis O'Brien over more than a year to work for the company but that things went wrong after he agreed a three-year deal in May 1997 with an Esat subsidiary - Aquado Limited - under which he would provide services to Esat. He claimed he performed his work with skill and diligence but was dismissed in March 1998.

Under an agreement with Mr O'Brien, he claimed he was entitled to 1 per cent of Esat - currently valued at some £19 million following its purchase by British Telecom - as well as damages for wrongful dismissal and breach of contract. Mr Rogers said he never exercised that share option because the defendants wrongly breached their agreement with him.

Mr Rogers (47), from Cedar Rapids in Iowa, claimed he left a job with McLeod USA to come to work for Esat in summer 1997. He claimed he had refused earlier offers to work for Esat because of a number of concerns, including the possible implications for his children's education but was eventually wooed by a very attractive package including the 1 per cent equity offer and an offer, allegedly made by Mr O'Brien personally, under which he would set up a new call centre in Ireland of which he would be chief executive officer and own a 25 per cent stake.

He claimed Mr O'Brien had said he would make the Rogers family "very rich". In the action which opened on Tuesday, Mr Rogers sued Esat Telecom Holdings Limited, Mr O'Brien and Aquado, which is registered in the Isle of Man. The defendants denied the claims and pleaded that if there was an agreement, it was with Aquado and not in the form alleged by Mr Rogers. They claimed his work performance was poor and that he failed to co-operate with an inquiry ordered by the Esat board. Esat and Mr O'Brien also denied that Mr Rogers had any entitlement to equity in the company or damages.

The case was due to continue at 11 a.m. yesterday but was adjourned for a time to facilitate talks between the parties. Mobile phones were in much demand as the hours wore on.

Just before 3 p.m., Mr Adrian Hardiman SC, with Mr John McBratney SC and Mr Rory MacCabe SC, for Mr Rogers, told Mr Justice McCracken all parties were happy to say the matter had been settled on "amicable terms". The judge agreed to counsel's request to adjourn the matter to Thursday next to allow the settlement be implemented. Mr Justice McCracken added that he was very glad that common sense had come into the case.