‘De-facto’ director of steel frame manufacturer asks court to prevent dismissal

The “de facto” joint managing director of a firm that makes steel frames for the construction sector has launched High Court proceedings aimed at preventing his employer from dismissing him from his job.

The action has been brought by Gerard McCarthy against two related firms, Frameform Steel Systems Limited and IJM Timber Engineering Ltd, which both have registered addresses in Monaghan town.

The action is also against businessman Peter McCaughey of Kilkerley, Dundalk, Co Louth, who is alleged to be the controller and majority shareholder of the other two defendants.

Mr McCarthy, who says he is “a pioneer” in the light-gauge steel framing industry, claims that he is the founder, minority shareholder and “de facto” joint managing director of Frameform Steel System since it was established in 2021.

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He also claims that while he works for Frameform Steel, which has a manufacturing facility in Co Louth, he has been paid by IJM Timber, which is involved in the timber frame housing sector.

He claims that Frameform Steel was set up, after he was approached by Mr McCaughey, as a joint venture involving the two businessmen and IJM Timber.

Ray Ryan BL, instructed by MacSweeney & Company Solicitors, told the court that while much of what his client claims will be “hotly contested” by the defendants, it is their case that Mr McCarthy’s employment had been unlawfully ended by way of a redundancy.

Counsel said it is Mr McCarthy’s case that he has been dismissed from the company in breach of his rights.

It is alleged that the purported dismissal took place as a result of Mr McCarthy raising matters with Mr McCaughey about Frameform Steel, including the financial relationship between it and IJM. It is also alleged that the purported dismissal has come about because the plaintiff refused to transfer his shareholding in Frameform Steel to Mr McCaughey.

While no written contract of employment exists, and there are aspects of the dispute that are unclear, it is the plaintiff’s case that Frameform Steel is a quasi partnership involving his client, counsel said.

Mr McCarthy of Kilnadeema, Loughrea, Co Galway, fears that the purported dismissal will have an adverse effect on both his reputation within the industry and on his financial wellbeing

As a result, counsel said that his client is seeking orders from the court, including injunctions restraining the defendants from terminating Mr McCarthy’s employment and that the corporate defendant continue to pay his salary and contractual entitlements.

He further seeks an order directing the defendants to facilitate his return to work.

The matter came before Mr Justice Mark Sanfey during Tuesday’s sitting of the High Court. The judge, on an ex parte basis, granted the plaintiff permission to service short notice of the injunction proceedings on the defendants.

The matter will return before the High Court next week.

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