FORMER BORD Gáis chief executive Gerry Walsh has settled his High Court action claiming entitlement to an additional €2 million from the company arising from a letter signed by former group chairman Michael Conlon. The terms were not disclosed.

Mr Walsh (58) previously received up to €2 million from Bord Gáis during his seven-year tenure as chief executive, when his salary more than doubled between 2000 and 2007. He received €184,000 in 2000 and his salary was increased every year, reaching €432,000 in 2007, when his contract expired.

In his court proceedings he claimed he was also entitled, arising from a letter signed by Mr Conlon in November 2000, to avail of the company’s early retirement scheme which, the court heard, would give him benefits exceeding €2 million.

The scheme provides for a year’s pay at the end of employment and half pay from 2007 until age 60 when a pension would be paid based on his final salary (€432,000).

Some €50-60 million and perhaps more had been paid out under the scheme to retired executives, the court was told.

If not entitled to the early retirement scheme, the court heard Mr Walsh would in any event be entitled to a pension from the company based on his service with it since 1984 and his salary of €115,000 before becoming chief executive.

The case opened before Mr Justice Bryan McMahon earlier this week but was later settled on undisclosed terms.

In outlining the case, Marcus Dowling, for Mr Walsh, said Bord Gáis appeared to be arguing Mr Walsh’s €2 million claim was “outlandish” when the Government departments responsible for the utility and “directing the defence” of the case “pay themselves greater figures”.

A department secretary general on a seven-year contract who retired at the end of that term would not only get early retirement provisions but a defined-benefit pension based on his final salary which the State refused to give to Mr Walsh, Mr Dowling added.

Mr Walsh claimed Mr Conlon had agreed he was entitled to the early retirement scheme and had signed a letter to that effect on November 14th, 2000, after first securing legal advice from O’Flynn Exhams Solicitors that he had the authority of the Bord Gáis board to sign it. Mr Walsh had no idea whether the board saw the letter, said.

In opposing the action, Bord Gáis denied the claims and argued the letter was not binding. Maurice Collins SC, for Bord Gáis, said Mr Walsh had received the benefits “at the stroke of a pen in a letter which never was seen by the board or the minister” and the court had to determine whether that was lawful.

Mr Dowling said Bord Gáis seemed to be suggesting Mr Conlon engaged in “some kind of frolic” outside the scope of his authority and that was why he had been joined to the case. If that was correct, and Mr Walsh’s side insisted it was not, Mr Conlon was liable to Mr Walsh on grounds he made representations negligently.

Mr Conlon, in his defence, had denied the claims. He said he had explained to Mr Walsh he did not have authority to agree to any variations of Mr Walsh’s employment contract and he provided Mr Walsh with the letter so he could go before the board and argue his case.

Mr Conlon further pleaded that he had told Mr Walsh any potential variations to his contract would have to be approved by the relevant minister.

The court heard Mr Conlon has been diagnosed with Alzheimer’s disease and would be unable to give evidence. His counsel, Brian Cregan SC, had asked the court to admit into evidence a witness statement signed by Mr Conlon.