Laughter broke out in the High Court yesterday when the judge was told a man suing Esat Telecom would be happy to accept damages equivalent to the current value of 1 per cent of equity in the company - worth about £19 million (€24 million)following the £1.9 billion purchase earlier this week of Esat by British Telecom.
Mr Adrian Hardiman SC, representing Mr Dan Rogers, claimed that under the terms of a contract dated May 20th, 1997, his client was entitled to that 1 per cent equity. Esat denies any such entitlement.
Yesterday was the third day of an action by Mr Rogers (47), formerly of Cedar Rapids, Iowa, but now living at Clearwater Cove, Dun Laoghaire, against Esat, its chairman, Mr Denis O'Brien, and Aquado Ltd, an Esat subsidiary registered in the Isle of Man. He is seeking multi-million pound damages for wrongful dismissal and breach of contract.
Mr Rogers claims that after being "love-bombed" by Mr O'Brien over a long period, during which Mr O'Brien allegedly said he would make the Rogers family very rich, he agreed to work for Esat in May 1997. He says that after undertakings from Mr O'Brien he entered an agreement with Aquado, dated May 20th 1997, where Aquado employed him to provide services to Esat as director of customer care and to develop a customer care business of which he would be chief executive officer and hold a 25 per cent stake. He also claims that under an agreement with Mr O'Brien he was offered and is entitled to 1 per cent of the equity in Esat.
His period of employment was to run for three years from May 1997 but, he says, he was wrongly dismissed in March 1998. He says he never exercised his 1 per cent share option in Esat because the defendants had wrongly breached their agreement with him.
The defendants have denied the claims and alternatively have pleaded that the agreement with Mr Rogers was not in the form alleged. Esat denies Mr Rogers has any entitlement to damages or equity.
Continuing his opening of the case yesterday, Mr Hardiman read correspondence which, he argued, showed Mr Rogers was regarded by Esat as still working for the company up to May 1998. It is claimed Mr Rogers continued to attend for work until his "swipe" card, which gave him access to the premises, was withdrawn.
Esat was contending Mr Rogers had made a "poor performance" in his position but, Mr Hardiman said, Mr Rogers would say he did his work with an extraordinary level of commitment and had handled difficult circumstances.
Counsel said Mr Rogers was seeking the 1 per cent equity in Esat which was part of the package under which he had come to work for Esat. Mr Rogers was contending his contract had entitled him to pre-issue shares.
Mr Hardiman said Mr Rogers would be happy to take 1 per cent of equity in the company at its present value, a comment greeted with laughter in the packed courtroom. Counsel said Esat stock was at all times regarded as a very good asset and "only a fool" would have sold it.
Mr Rogers was also seeking damages for breach of contract to establish a call centre. While the centre was, in fact, never set up, the court could assess the likely success of such a centre closely associated with Esat and in which Mr O'Brien had a determining role, counsel argued.
It was very clear that Mr Rogers, in deciding to work for Esat, had drawn Mr O'Brien's attention to the fact that this was a very serious decision, effectively meaning Mr Rogers was burning his boats in Iowa, Mr Hardiman said. He was taking a chance.
The hearing continues today.
