CCJ orders NBS to pay former CEO full pension

Nov 05, 2023 Court Stories, Features / Columnists, News

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Kaieteur News – The Caribbean Court of Justice (CCJ) has issued a judgment order directing the New Building Society (NBS) to pay its former Chief Executive Officer (CEO) Maurice Arjoon his full pension.

According to documents seen by this publication, the CCJ released its judgment order on October 25, 2023, just two weeks after it heard oral arguments in relation to the case which dates back to 2011, when Arjoon had sued the financial institution for dismissing him wrongfully in 2007.

The former CEO was fired after being accused of conspiring with two others to defraud NBS of $69M – a case which went to trial and was subsequently dismissed. The money reportedly belonged to Bibi Khan.

In 2017, High Court Judge, Brassington Reynolds, found that Arjoon was dismissed wrongfully and was owed his pension benefits. Justice Reynolds ruled in favour of and granted a $79 million award to Arjoon.

Last year, the Court of Appeal slashed the judgment that NBS was ordered to pay to $18.8 million. Arjoon in turn appealed the ruling to the CCJ. The society also filed a cross appeal in the matter.

In the document, the CCJ noted that it allowed Arjoon’s appeal but struck out the Cross-Appeal by the NBS.  The Apex Court also reversed a decision by Guyana’s Court of Appeal that Arjoon was not entitled to his pension benefits.

As a result, the Judgment and Order which High Court Justice Brassington Reynolds made on 20 July 2017 that Arjoon is entitled to his benefits with interests, was restored.  The Final Court of Appeal also ordered NBS to pay to Arjoon the additional sum of his leave pay and passage assistance for the years 2006 and 2007 in addition to standard costs.

The court on the other hand said that a decision on the issue of entitlement to severance pay is reserved.

Meanwhile, following the issuance of the judgment order of the CCJ, Attorneys at the law firm, Luckhoo and Luckhoo issued a letter to NBS demanding payments on behalf of Arjoon.

The letter outlined that the sums owed which NBS is instructed to pay immediately. Failure to pay the sums ordered, the law firm warned, will result in its client taking steps to levy on NBS’s property.

Last month, the CCJ heard the appeal filed by the dismissed CEO over his pension. At the time, the court has said that it will determine the matter shortly.

Senior Counsel, Steven Fraser who had petitioned the CCJ on behalf of NBS asserted that the High Court had made a wrong determination by ruling that Arjoon was wrongfully dismissed. The lawyer said that he was therefore not entitled to his pension.

In his submission, Fraser, inter alia, pointed to evidence that was tendered in the High Court but was not admitted. To this, judges of the CCJ sought clarity on his reasoning.  “Did you argue that the trial judge was in error for not admitting that evidence or ought to have admitted that evidence? What did the Court of Appeal decide about that and is this a ground of appeal before us?” Justice Peter Jamadar specifically asked.

“Well… your honours if I may answer… we do feel that it is an egregious miscarriage of justice and we are fortified that this court, the Apex Court; even when there are cases of concurrent findings of fact is not shy to look at the inferences which are to be drawn from the findings or the primary findings of fact…” the attorney said in reply.

Justice Denys Barrow raised similar contentions. He admitted that Fraser’s submissions bothered him. “I must confess that I am gravely, gravely bothered…You want us to make finding of fact in relation to the right to dismiss Mr. Arjoon. I look at your cross appeal, it states the court erred in law when it failed to consider the grounds on which the appellant was dismissed. [But] You make no complaint that the High Court failed to admit relevant evidence and failed to give proper consideration to this evidence.” At one point, Fraser asked the court to bear with him as he sifts through the contents in relation to the case. He started to point to inferences in relation to the facts but asked to take a break.

‘Your Honours, we are 41 minutes almost so I would be happy if we could be given a break.’ However, President of the CCJ, Justice Adrian Saunders interjected stating that he thinks the lawyer should “cut to the chase!”

“Why do you say this man should have been rightly dismissed what are the inferences that the Court should have drawn that it did not draw? he asked.  To which, Mr. Fraser responded, “Your Honour, the appellant after the incidence of withdrawal etc.; he [Arjoon] was called, he was written to… the letter which addressed him… called upon him indicating that an investigation had been carried out and it called upon him and invited him to a meeting to show cause why he should not be disciplined or dismissed…the reaction was the appellant went to court in order to seek an injunction to stop the meeting being held…”

He claimed that Arjoon failed to attend the meeting but sent his attorney in his place. He claimed that the single act of insubordination should be basis for summary dismissal.

Meanwhile, in his submission on behalf of Arjoon, Senior Counsel Mr. Edward Luckhoo pointed to evidence that there was no wrongdoing by his client.  “All the investigations of Raja Ram, the internal accountant, he testified in the Magistrate Court that he didn’t find those transactions to be illegitimate…He claimed all the rules had been followed.”

The lawyer therefore reasoned that Arjoon should be awarded his full pension package and other benefits.

“I think the appropriate calculation will be under the rules of the pension scheme… There is a method of calculation for this that was done by Mr. Arjoon.”

Luckhoo asked the Court to restore the judgment of the High Court in relation to the calculation of the pension. He noted in relation to the pension, the High Court ordered severance pay. He said that “If an employer acts wrongly and dismisses you then the employee is entitled to pension and severance.”

The CCJ, however, found difficulty with this submission. In the Court’s view, Arjoon was not allowed to double dip; it is either his full pension or severance.

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• Caribbean Court of Justice (CCJ), dismissed, Former CEO of NBS, Maurice Arjoon, wrongfully

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