The settlement of former DAA chief executive Kenny Jacobs’ case against the airports company is of particular significance to Minister for Transport Darragh O’Brien. The Minister will feel his decision not to approve an earlier €960,000 deal between the pair has been vindicated.
DAA and Jacobs told the High Court on Thursday they had settled their litigation.
The former CEO began proceedings after the State-owned business, responsible for Cork and Dublin airports, suspended him in December. The suspension had been enforced pending the outcome of an investigation into allegations about his behaviour towards staff.
Neither side has revealed the amount of the settlement. The Minister confirmed afterwards that the figure was “considerably less” than an earlier agreement mediated between DAA and Jacobs. That was reported to be worth €960,000.
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O’Brien had refused to approve that agreement, details of which emerged after news of differences between the board of DAA and Jacobs first broke last year. In the Minister’s statement on Thursday, he pointed out his dissatisfaction with the mediated agreement.
His approval was not required for whatever sum the company agreed to pay Jacobs to end the High Court litigation. However, O’Brien noted that the company’s board had kept his officials informed of developments.
DAA’s board drew criticism for the €960,000 deal. Nevertheless, O’Brien’s decision not to approve it looked risky, as it meant the dispute between Jacobs and the board of the company responsible for Ireland’s biggest airport could drag on.
[ Kenny Jacobs to step down as DAA CEO after High Court action settledOpens in new window ]
The fact he was able to say on Thursday that the legal settlement was “considerably less” allows the Minister to argue his original decision in November was vindicated.
The deal was meant to end a standoff between the sides. O’Brien’s refusal to approve it was followed by DAA suspending Jacobs while barrister Kelley Smith investigated complaints levelled against him.
That investigation followed an earlier inquiry by another barrister, Mark Connaughton, which found allegations of “sexist, misogynistic, racist, homophobic and ageist behaviour” against Jacobs were baseless.
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Jacobs argued that his suspension prejudged the outcome of the second investigation against him. He also maintained this was a hatchet job and the result of the board soliciting complaints against him.
On Thursday morning, both sides stepped back from the brink of potentially costly litigation. In the process, they have also stepped back from furthering a process involving public disclosures that could have dented reputations and shone a light on the inner workings of a key State company.
That organisation faces challenges elsewhere, not least at Dublin Airport, where there are ongoing rows over a 32 million-a-year limit on passenger numbers. The passenger cap has angered airlines and led to a formal complaint from US carriers. O’Brien is shortly due to publish legislation geared toward ending the passenger cap.
