The Channel Islands Co-op appeared before Jersey’s Court of Appeal this morning seeking to overturn a ruling that awarded £3.5 million to its former Chief Executive.
The appeal hearing, which is expected to last three days, marks the latest chapter in a long-running dispute between the Channel Islands Co-operative Society and former Chief Executive Colin Macleod.
Mr Macleod led the organisation for a decade from 2010, but claims the final years of his tenure were overshadowed by a sustained campaign to remove him from his position. He went on sick leave in 2019 and was dismissed in 2020 as he prepared to return to work.
Mr Macleod later brought a case before Jersey’s Royal Court, claiming he had suffered psychological injury as a result of his treatment by senior figures within the organisation.
After a weeks-long trial last year, Jersey’s Royal Court awarded Mr MacLeod just over £3.5m.
In a statement issued to shareholders shortly after the full judgment was published, the retailer confirmed it planned to appeal the decision.
Current Co-op Chief Executive Mark Cox said the society did not accept the court’s conclusions and believed there were “substantial grounds for appeal”.
“Whilst we acknowledge the judgment, with respect, we do not agree with the findings,” the statement said.
“After liaising closely with our insurers and legal advisers, we therefore intend to challenge the decision through the appeal process.”
The ruling, handed down by Commissioner Matthew Thompson in Jersey’s Royal Court, found that three former Co-op directors – Paula Williams, Jennifer Carnegie and Carol Champion – had acted “in bad faith” towards the former Chief Executive.
The court concluded that the society’s actions caused Mr Macleod a foreseeable psychiatric injury arising after he was signed off sick in 2019 and later dismissed in 2020 while still unwell. The dismissal, the commissioner said, led to a relapse in his condition.
As a result, Mr Macleod was awarded £3,515,407, comprising past and future loss of earnings and damages. This included £40,000 in general damages and loss of congeniality, as well as future earnings calculated up to the age of 60.
Payment of damages had been frozen pending the retailer’s appeal, but the Co-op was last week ordered to release £600,000 of the compensation payout immediately to allow Mr Macleod to clear mounting legal debts, repay loans from his elderly parents and continue fighting the case through the appeal courts.
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