DELIBERATIONS have begun on the Coop’s appeal against a multi-million pound payment awarded to its former chief executive.
In a long-running legal saga, the Court of Appeal hearing pitting the Society against its former head Colin Macleod concluded yesterday.
The Royal Court previously ruled in favour of Mr Macleod following his personal injury and awarded him £3.5 million for what was described as a campaign to oust him.
The Co-op’s lawyer, Advocate Jeremy Heywood, has this week argued that it could not have foreseen the psychiatric injury and that the behaviour of the Coop’s board members was not severe enough for an exception to that standard.
Colin Macleod, who was chief executive of the Channel Islands Co-operative Society from 2010 to 2020 and described in court as “imbued with co-operative values”, was awarded the multi-million claim in compensation, comprising loss of earnings, psychiatric injury and loss of congeniality.
In the Court of Appeal, Mr Macleod’s lawyer, Advocate Michael O’Connell, accused the Coop of having “diminished” a medical statement to argue that the injury was not bad enough for them to be liable.
He added that the Coop knew before they dismissed Mr Macleod that he had ben suffering from psychiatric illness, which meant they could have foreseen that he would relapse.
“The Co-op was aware that he had not recovered. The Coop was aware that he had the sick note that he sent to the human resources partner,” Advocate O’Connell said, adding that the business also knew that his therapeutic treatment was “ongoing”
Over the course of several months last year, the Royal Court heard how a group of board members had created a secretive WhatsApp group and sought ways to remove Mr Macleod from his position – including two audits into his expenses and a board meeting where director Jennifer Carnegie was “aggressive” towards him.
The campaign caused Mr Macleod to suffer from a psychiatric injury, described as a prolonged adjustment disorder. He recalled not being able to sleep, drinking more, and shaking at the thought of going to work.
Ultimately, he was signed off work ill – and when he was dismissed as he was returning to the office, this caused him to relapse.
The three-day hearing came to a close yesterday, and the court reserved its judgment. Michael Furness KC is presiding over the Court of Appeal, with Angus McCullough KC and Dame Julia Macur sitting.
