Businessman denies resenting former director for making him sell Dalkey home

A businessman has denied that he resented a Fine Gael county councillor and other directors of his packaging firm for “making” him sell his home in Dalkey, Co Dublin to provide funding for the business.

AB Group Packaging owner Dermot Brady told the Workplace Relations Commission (WRC) that he invested the €1.7 million proceeds from the sale back into the company and had planned to move house regardless.

He was defending an unfair dismissal claim made by his former finance director, Wicklow county councillor Edward Timmins, who alleges he was dismissed in a “sham” redundancy in 2020 motivated by “interpersonal issues”.

Mr Timmins, a chartered accountant, worked with the company for 19 years and lodged a complaint against the Blessington, Co Wicklow firm under the Unfair Dismissals Act.

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The company maintains that his role was made redundant because of a need to book profits and recapitalise the business after a failed attempt to expand to the US and due to “root-and-branch” changes. It says Mr Timmins never raised a grievance about any interpersonal issues as they never existed.

During a hearing at Lansdowne House in Dublin, Kate Kennedy BL, for Mr Timmins, said it was her client’s position that his working relationship with his boss had “deteriorated significantly” from late 2016 into early 2017, around the time the firm expanded to the US. Mr Brady denied this and said: “Like most people and most companies, there are differences of opinion.”

Ms Kennedy put it to him that difficulties arose with the directors when they refused to make the required assurances about the company’s finances so that he could secure a loan in 2019 – and that they agreed to do it only if it was treated as bridging capital until he could sell property to provide funding.

“Of course I didn’t like it, but did I do it? Yes, I did, and I did it in the best interests of the company and the security of the staff,” Mr Brady said.

“They will say you resented them for making you sell your home and you were aggrieved about it,” Ms Kennedy said.

“No, that’s not the case. We’d our business in the UK. I was going to move out of my house anyway,” Mr Brady replied.

Mr Brady said that after closing its US arm in August 2017, the company was able to get back into profit after a couple of tough years but was “ill-positioned” due to a €1.5 million debt to Ulster Bank which could have “pulled the plug at any stage”.

He said that around this time Mr Timmins wanted to become chairman of Wicklow County Council and “it would have suited” him to leave. He said they discussed a severance package and although the firm “might have been making a profit”, it was “still very ropey”. He said he proposed paying the €92,250 package over six-months period but Mr Timmins said he had “no faith” that he would receive it all.

HR consultant Mark Slattery of Adare HRM, who chaired the consultation process on the redundancy of the finance director role, said the complainant never raised a grievance about any “interpersonal issues” with Mr Brady.

He said he had no cause to inquire further on foot of a letter Mr Timmins sent on January 23rd, 2020 which stated: “I can only assume your attempt to remove me from the company is based on other issues of which I’m sure you’re aware”.

“He had the opportunity to raise other issues if he thought they were relevant,” Mr Slattery said.

Ms Kennedy put it to Mr Brady that he had overruled Mr Timmins when he objected to cash withdrawals from the business while the company found itself “unable to pay its creditors”. It was her client’s case that these undermined the business case the company had given for her client’s redundancy, she said.

Mr Brady replied that there was “no issue with the day-to-day running of the company”.

“Mr Brady, you gave evidence of losses in the United States, a zero credit rating, issues with bondholders… and when I ask you about [withdrawals] of €40,000-€50,000 you say there’s no effect?” Ms Kennedy said.

Mr Brady said he had invested €1.7 million from the proceeds of his house sale back into the firm.

He said he was close to 60 years of age and needed to “squeeze the assets” to make provision for himself in retirement.

“Isn’t that the issue? The emails where Mr Timmins is asking you not to take money out of the accounts?” Ms Kennedy said.

“No. He asked, I listened, I took my decision,” Mr Brady said, adding that he had “every right” to withdraw the money from the company as its sole shareholder.

Adjudicating officer Jim Dolan took the complainant’s legal submissions as read and adjourned the matter to a date in August, pending approval by the WRC adjudication service.