The former managing director of one of the largest companies in Shropshire has made allegations of a catalogue of inappropriate conduct carried out by his ex-bosses.
See also: Ex-boss bids to sue firms
David Alexander has launched a £640,000 legal claim against the company, claiming the actions of its owners forced him to resign.
He is attempting to sue George Butler and Kevin Connolly, their company Pan Atlanta Developments and the Galliers Group, which comprises Frank Galliers Holdings Ltd, Frank Galliers Ltd, Maurice Graham Ltd and Galliers Estates Shrewsbury, which was bought out by Pan Atlanta in October 2004.
The Galliers companies are all based at Shrewsbury’s Oxon Business Park.
Mr Alexander, 63, alleges the actions of Mr Connolly and Mr Butler compromised the “financial well-being” of the company and there was a “gradual erosion” of his managerial power.
He is claiming damages for loss of earnings and benefits, as well as “stigma damages” and states he would have remained in employment until the age of 68.
He alleges he was told to alter the accounts recording the purchase of two Jaguar cars for Mr Butler and Mr Connolly as if they were loans of £20,000 from each individual company, although the vehicles were only worth £14,500 and £14,000.
Mr Alexander claims the two men delayed selling an apartment site in Shrewsbury to a third party because they wanted to buy it at cost price for themselves.
The High Court writ details an e-mail which states: “Kevin and I are seriously considering purchasing all eight of the remaining apartments…this will be done via a new co. jointly owned by Kevin and I…as to the price, it will be close to cost.”
The development was eventually sold five months later but Mr Alexander claims the delay caused serious damage to the company and to staff morale.
Mr Alexander has also accused the two men of failing to provide proper staffing and claims he had to fulfil the role of commercial manager as well as managing director.
He alleges he did not receive a formal pay review during his time at the company as was stated in his contract nor did he receive a company car.
He says an e-mail was sent from Mr Connolly saying Mr Alexander had said he would wait for a car but he claims not to have had a discussion with either of his bosses about it.
The claim will now be taken through the High Court in London.
The directors of Pan Atlanta, which owns the Galliers Group, today said they would “vigorously” defend the legal action being taken against them.They also said they were preparing a counterclaim for “substantial damages” from Mr Alexander for what they said were breaches of his contract.
Roland Taylor & Co, the solicitors acting for Mr Connolly, Mr Butler and The Frank Galliers Group of Companies, said in a statement: “On January 30, Mr Alexander resigned as managing director without notice.
“He did so a matter of hours before he was due to attend a board meeting at which he was expected to explain actions of his that had caused the owners of the company serious concerns.
“Mr Alexander subsequently commenced proceedings in the employment tribunal claiming compensation in excess of £500,000.
“Those proceedings were vigorously defended and Mr Alexander discontinued those proceedings without receiving any compensation whatsoever.
“These latest proceedings, issued more than one year after Mr Alexander’s resignation, will likewise be vigorously defended.
“The High Court writ is presently with our solicitors with a view to preparing a full defence to each and every allegation and indeed a counterclaim for substantial damages due to Mr Alexander’s own breaches of his contract of employment.
“We have no further comment at this stage.”
Exclusive By Rebecca Lawrence
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