6 days ago
5
The Caribbean Court of Justice has upheld the employment contracts of former Tourism Director Karen Bevans and former Director of Marketing and Industry Relations Misty Michael, dismissing the Belize Tourism Board’s appeals in both cases. Today’s unanimous ruling endorses the lower courts’ decisions awarding Bevans 770 thousand dollars and Misty Michael 200 thousand dollars, following the termination of their employment. BTB had challenged the contracts because the appointments were not formally approved by its board before the agreements were signed. While the CCJ agreed that the required procedure had not been followed, it ruled that this did not invalidate the contracts. The tourism minister had approved the appointments, both women had performed their duties, and the board had knowingly allowed the arrangements to continue. CCJ President Justice Winston Anderson explained the finding.
Justice Winston Anderson, Judge of the Caribbean Court of Justice: “Noted section 16 of the BTB Act which provides that acts or proceedings are not to be questioned on account of omissions, defects or irregularities not affecting the merits of the cause. The court concluded that the BTB clearly possessed statutory capacity to appoint employees and thus did not act ultra-vires. The minister had approved the appointments, contracts had been executed, Bevan’s and Michael had carried out their functions, and the board had knowingly permitted these arrangements to continue. In these circumstances parliament could not have intended the procedural irregularity to invalidate the appointments.”
The court also rejected BTB’s argument that the provision requiring payment of the salaries and benefits remaining under the contracts amounted to an unenforceable penalty. It found that terminating employment without cause was a contractual option carrying agreed financial consequences. But the ruling also delivered a message on the responsibilities of statutory boards. The CCJ stressed that board members have independent duties to the institutions they serve and should not simply approve decisions made by a minister. Justice Anderson outlined that concern before announcing the court’s final orders.
Justice Winston Anderson, Judge of the Caribbean Court of Justice: “The court also took the opportunity to comment extensively on governance standards applicable to statutory boards. It stressed that members of statutory boards owed independent fiduciary duties to the entities they serve and are not merely expected to rubber stamp ministerial decisions. The court supported the suggestion of the Court of Appeal that the BTB could make regulations in accordance with the BTB Act to support greater transparency in appointments to senior positions in statutory corporations. In the result, the appeals and cross-appeals were dismissed. No order as to costs was made in this case.”
The CCJ dismissed both BTB’s appeals and the cross-appeals filed by Bevans and Michael. It made no order for costs in these proceedings.
English (US) ·