A former senior manager with Microsoft's Ireland operation has been awarded damages which could amount to €200,000 by the High Court after it found she had suffered a psychiatric condition as a result of the company unlawfully breaching her contract of employment.
Breda Pickering (43), Bishops Lane, Kilternan, Dublin, had sued Microsoft Ireland Operations Ltd for alleged negligence, breach of contract and failure to get her redundancy entitlements and stock options. The defence had denied the claims.
The court heard that Ms Pickering, who was the Dublin-based head of Microsoft's European localisation division, spent 13 years with the company and, through the realisation of stock options, amassed more than €13 million during that period.
Speaking from her Spanish home after Mr Justice Esmond Smyth's judgment yesterday, Ms Pickering said she felt vindicated by the court's decision and felt justified in bringing the case.
It was claimed by Ms Pickering that June 1999 had marked the beginning of her being "frozen out" of the company. This was when she was told the US and Ireland localisation divisions of Microsoft were being amalgamated. She was told she was wanted at the helm of that and that she would be responsible for Microsoft's localisation operations worldwide.
She had said she wanted the promotion but asked if she could do it while remaining in Ireland. She claimed she was told that would be discussed.
However, in September 2000, Lori Brownell had secured the promotion. It was claimed on behalf of Ms Pickering that, from October 2000 until January 2001, her role and position in Microsoft were undermined and the mutual trust and confidence between her and her employer had gone.
She also claimed she was told she could not avail of a RIF (Reduction in Force) package which could have provided a means of re-slotting her into another position in the company. She said that on January 26th, 2001, while celebrating her birthday in Ashford Castle, she received a phone call from Soma Somasegar, corporate vice-president of Microsoft, to say she would not be able to avail of a RIF package, and that this news triggered a nervous breakdown.
In his reserved judgment, Mr Justice Esmond Smyth found that Microsoft, in its conduct and treatment of Ms Pickering, had breached her contract of employment. He ruled Microsoft had unlawfully terminated and or constructively dismissed Pickering.
The judge said that after Ms Brownell was appointed to the new position of worldwide head of localisation in September 2000, Ms Pickering was "undoubtedly disappointed". However, she adopted a professional approach to the change and was willing to work with Ms Brownell.
The judge said he was satisfied that assurances given to Ms Pickering at a September 2000 meeting between her and her superior, Mr Somasegar, regarding her role in the organisation were to constitute an express term of her contract from then on.
The judge said Mr Somasegar "clearly anticipated" there might be difficulties for Ms Pickering in the future. That was why Mr Somasegar felt it necessary to reassure her in the terms that he did. Microsoft, the judge said, had agreed that Ms Pickering would be party to the resolution of difficulties arising from the implementation of the single organisational plan insofar as it affected her. He held that Microsoft was promising Ms Pickering she had a right to be involved in the process but that had not happened.
Mr Justice Smyth said Ms Pickering had an excellent work attendance record and no record of "stress or psychiatric or mental problems" before the events of January 2001. Microsoft could not have foreseen damage or injury to Ms Pickering before that time.
The position changed when Microsoft became aware that Ms Pickering was suffering from stress. He found the company then knew, or could have informed itself, that her condition was of a reasonably serious nature.
If Ms Pickering had had the feeling that senior management were willing to engage with her as they had promised to do in the first place, that might well have made a real difference in restoring her shattered confidence at the failure of her employer to honour a contractual obligation, he said.
He held that Ms Pickering suffered a recognised psychiatric condition in January 2001 which did not originate "in the ordinary stress of the working place" but rather was attributable to a breach of contract and breach of duty on the part of Microsoft. While the events of January 26th, 2001, and the refusal of the RIF to Ms Pickering "triggered the onset of her symptoms", the medical evidence suggested the failure of Microsoft to honour its contractual obligations was "the causative factor in the plaintiff's illness".
He held that Ms Pickering was entitled to general damages, in an amount yet to be decided, for breach of contract, negligence and breach of duty on the part of Microsoft. He awared her €60,000 for pain and suffering to date and €40,000 for pain and suffering in the future, including €20,000 for future loss of employability.
Special damages and an amount for loss of earnings will be decided by Mr Justice Smyth on January 13th next. The final figure is expected to total more than €200,000.