Ex-Farmers chief executive guns for another $1 million payout

Coran Lill

Friday 23rd April 2004

Former Farmers chief executive Nick Lowe has sued his employers at the retail chain, accusing them of forcing him out of a job and refusing to pay contractual entitlements.

The parties are now headed to a two-day court hearing after a private mediation led by a former High Court judge broke down.

Mr Lowe resigned as chief executive of Farmers in February, just four months after the retail group was bought by Fisher & Paykel Appliances and jewellery chain Pascoes.

But he claims that after he put in his resignation, the company forced him out by making significant changes to his job description.

Mr Lowe, who was hired for the top job in October 2000 after leaving his former position as managing director of Pacific Retail Group with a reported $975,000 payment, was "on holiday" in England and not contactable, a Farmers' source said.

However, his lawyer, Rob Towner, said the amount of Mr Lowe's claim was "in the order" of $1 million. The claim included compensation for humiliation and injury to feelings. He also claimed additional "aggravated damages" because he said he was unhappy with the way the company had treated him in recent months and the way it handled his departure.

After Mr Lowe handed in his resignation, he was required to work until December but "further significant changes which took place after his resignation amounted to a termination of the relationship," Mr Towner said.

Asked under what circumstances his client had left Farmers, Mr Towner said Mr Lowe had been away from the office and simply did not return to work.

Mr Lowe severed remaining ties with Farmers about five weeks ago and Pascoes managing director David Norman has been running the business since.

Farmers' chairman Denham Shale did not wish to comment on Mr Lowe's action.

"It is not the style of the Farmers' board to litigate matters in public prior to a hearing," he said.

"We will wait until the Employment Relations Authority has heard and determined the matter and may then make a further statement," he said.

Mr Towner said Farmers has denied Mr Lowe's allegations and has filed its own set of proceedings against Mr Lowe, seeking a ruling on redundancy provisions in Mr Lowe's employment contract.

Following the failed mediation, led by Sir Ian Barker QC, Mr Towner said it was unlikely the parties would settle out-of-court instead they were likely to go to a two-day hearing in the Employment Relations Authority at the end of May.

Mr Towner said the company defended itself by saying it didn't make "significant changes to Mr Lowe's job" and that he "simply walked away from his job."

Mr Towner said his client's contract had been varied by Farmers' previous owner Foodland Associated to allow a redundancy-type payment where a significant change to job duties occurred or where dismissal took place within six months of a sale of the business.

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