Microsoft ordered to pay €348,000 to former manager

The High Court has ordered Microsoft Ireland to pay a former senior manager more than €348,000 damages for constructively dismissing her. However, when legal and other costs of the action brought by Breda Pickering are included, the company may be facing a bill of up to €1 million.

In a ruling yesterday following his judgment last month upholding Ms Pickering's claim that she was frozen out of the company, Mr Justice Esmonde Smyth awarded damages of €348,000 and costs of the 12-day action to Ms Pickering against Microsoft.

Ms Pickering (43), of Knockbracken House, Bishops Lane, Kilternan, Dublin 18, was not in court yesterday. During her 13 years with Microsoft, during which time she became head of Mircosoft's localisation division in Europe, she realised in excess of €13 million in stock options, the court previously heard. In her action, she had sought damages from Microsoft Ireland Operations for alleged negligence, breach of contract and failure to grant her redundancy entitlements and stock options.

In his judgment, Mr Justice Smyth held that Microsoft had repudiated Ms Pickering's contract of employment through its conduct and treatment of her.

It was claimed by Ms Pickering that a series of events eventually resulted in another woman securing the post of Microsoft's worldwide head of localisation, a post that had been offered to Ms Pickering but which she rejected because it involved relocating to the US.

Ms Pickering claimed she was effectively "frozen out" of the company subsequently.

On January 26th, 2001, while celebrating her birthday in Ashford Castle, Ms Pickering received a phone call from Soma Somasegar, corporate vice-president of Microsoft, to say that she would not be able to avail of a Reduction In Force (RIF) package, an arrangement under which, she claimed, employees could relocate within Microsoft. The court was told that the refusal of the RIF triggered a nervous breakdown.

Mr Justice Smyth ruled she had suffered a recognised psychiatric condition in January 2001 which did "not have its origins in the ordinary stress of the working place" but rather was attributable to a breach of contract and breach of duty on the part of Microsoft.

In court yesterday, a breakdown of the award of damages was detailed. The judge allowed €149,000 for not being able to cash in on stock options. The award also includes €60,000 for pain and suffering to date and €40,000 for pain and suffering in the future including €20,000 for future loss of employability. Some €69,000 was allowed in relation to salary; €1,348 for medication; €7,757 for flights, €800 for car hire and a hotel bill for the duration of the proceedings of more than €3,000.

The total award came to €348,902. Mr Justice Smyth said €200,000 of that was to be paid out immediately to Ms Pickering but he put a stay on payment of the remainder in the event of an appeal.