FCB to pay manager after bugging office, firing him

A former First Citizens Bank manager who discovered a microphone hidden inside a smoke detector in his office was dismissed weeks later. Now, the bank has been ordered to compensate him.

In a judgment delivered this week, Justice Carol Gobin upheld a breach of contract claim brought by Stephen Pennie against First Citizens Bank, ruling that the bank acted unlawfully when it terminated his employment in 2018.

Pennie returned from vacation in March 2018 to find changes made to his office at the MovieTowne Financial Centre branch, where he served as manager. He claimed a client who was a security expert conducted checks and detected a microphone installed in a smoke detector. Pennie reported the matter to his line manager. According to his evidence, the bank’s security service manager admitted to placing the device during his absence.

On April 6, 2018, Pennie received a letter placing him on “non-punitive” suspension pending investigations triggered by information that had come to the bank’s attention.

Less than two weeks later, bank officials held a five-hour meeting with him, attended by his attorney. The following day, he was given 24 hours to respond to allegations. His lawyer requested a one-week extension, but the bank refused. Two days later, Pennie was dismissed with immediate effect and paid one month’s salary in lieu of notice.

“I find that FCB breached the Claimant’s contract of employment by denying him his contractual right to the procedure for the fair determination of disciplinary offences before terminating his employment for serious misconduct,” Justice Gobin ruled.

She also found that the refusal to grant an extension was unreasonable.

“Given Mr Pennie’s length of service, his seniority, the gravity of the allegations, and the threat of dismissal, the refusal of the request amounted to a clear breach of the obligation to comply with the strict rules of natural justice,” she said.

Justice Gobin further ruled that the dismissal on the basis that Pennie failed to provide an explanation was improper.

“The use of the absence of an explanation in the circumstances as a basis for summary dismissal was egregious,” she said.

Although Pennie sought just under $2 million in compensation, representing salary and benefits up to retirement, the judge awarded him nine months’ salary in addition to the one month already paid. The bank was also ordered to pay three per cent interest and his legal costs.

Pennie was represented by attorneys Yaseen Ahmed, Tara Lutchman, Carla-Anne Roper and Anuradha Dean.

The bank was represented by Kerwyn Garcia, SC, and Vishma Jaisingh.