THE Hong Kong High Court has ordered French shipping giant CMA CGM to pay former executive Igal Dafni, an Israeli-born Singaporean, US$2.3 million plus legal expenses for two years' unpaid salary and three years of bonuses.
Capt Dafni was earlier cleared in a Singapore court in 2010 of allegations arising from his employment with Israeli flag carrier Zim Integrated Shipping, and it was this case which caused of his dismissal from CMA CGM, said the court.
The Hong Kong case is the culmination of a five-year pay and bonus claim after Capt Dafni's sudden departure in 2008 as CEO from the CMA CGM Taiwan unit, CNC Line. He was named CEO in April 2007 for a three-year term.
When appointed, Mr Dafni was expected to make a valuable contribution owing to his knowledge of the intra-Asia trades as he had most recently served as managing director of Hong Kong's Gold Star Line in his last post.
The court ruled that Capt Dafni was sacked as CNC Line's CEO, which CMA CGM had acquired the year before, and hence the Marseilles-based company now owed him two years wages and three years' bonuses, according to a 65-page High Court judgment.
Taking into account the legal fees and interests determined by a judgment rate, total payment could top $3 million, Capt Dafni told Lloyd's List.
"CMA CGM had tried to stretch the proceedings as much as they could, assuming that such a delay would force an individual, constrained by financial abilities, to eventually give up the legal battle against them," he said.
CMA CGM has 28 days in which to appeal the ruling, but was unavailable for comment.
The employment was terminated in less than a year as Capt Dafni was sued by Zim Integrated Shipping Services in late 2007, where he served as Asia head between 2004 and 2006.
While Capt Dafni was cleared of wrong-doing in the Singaporean Zim case, the press coverage embarrassed CMA CGM and its Lebanese founder and chairman Jacques Saade, giving him reason to dismiss Capt Dafni, but not reason enough to pay the two years employment and three years bonuses he was contracted to pay, the court ruled.
WORLD SHIPPING
12 February 2014 - 23:00
HK court: CMA CGM to pay Dafni US$2.3 million in wage, bonus claims
THE Hong Kong High Court has ordered French shipping giant CMA CGM to pay former executive Igal Dafni, an Israeli-born Singaporean, US$2.3 million plus legal expenses for two years' unpaid salary and three years of bonuses.
WORLD SHIPPING
12 February 2014 - 23:00
HK court: CMA CGM to pay Dafni US$2.3 million in wage, bonus claims
This news 10151 hits received.
These news may also interest you