The High Court has ordered Dews Pro Builders Limited to pay its former CEO Christopher Martin approximately $89,855 in a dispute over share redemption and salary payments.
Justice Rene Williams ruled that the company wrongfully deducted salary payments made to Martin between February and June 2021 from his final share redemption payment.
The case stemmed from an agreement dated February 19, 2021, where Martin agreed to redeem his 2,500 shares in the company for over EC$4 million and resign from his position.
However, due to delays in obtaining bank financing, the company continued Martin’s monthly salary payments of $22,500 while he assisted with transitional duties.
When making the final payment in June 2021, the company deducted these amounts, claiming they were made in error.
The judge ruled that the defendant never informed its former CEO that any payments he received between 19th February and 21st June 2021 would be considered payments towards the purchase price of his shares rather than his salary.
The court also found that Martin continued providing services to the company during this period, including approving payments and maintaining customer relationships, even while abroad caring for his ill father.
Christopher Williams, the company’s current CEO, had argued the payments were made erroneously since Martin had resigned.
However, the court determined the company could not unilaterally reclassify authorized salary payments after the fact.
The judgment includes 3% interest from June 21, 2021, until judgment and 5% thereafter until payment.
