The head of the Mercantile pub group has gone to court to fight his dismissal
Frank Gleeson denies accusations of wrongdoing from a company investigation.
PUBLICAN FRANK GLEESON has secured a temporary High Court injunction preventing the company he is CEO of from taking steps to dismiss him from his role.
Justice Paul Gilligan said yesterday he was satisfied to grant Gleeson an interim injunction preventing Mercantile Entertainment Group from dismissing him from his employment.
As part of the order the company is also prevented from taking any steps to discipline Gleeson or dismissing him in reliance on findings made in a report commissioned by the company.
The judge, who made the orders on an ex-parte basis, adjourned the matter to 26 April, following the Easter vacation.
The Mercantile Group, which includes the Mercantile on Dame Street, the Green Hen in Exchequer Street and Whelans of Wexford Street, merged with the Capital Bars in 2015. Capital included Cafe en Seine in Dawson Street and the George in George’s Street.
Under the merger, Gleeson of Deerpark Drive, Castleknock, Dublin, has a 30% shareholding in a company called Ardan Advisory, of which the Mercantile Entertainment Group is a wholly owned subsidiary.
The remaining 70% is owned by JT Magen (Capital Bars) LLC and Danu Advisory Partners.
Allegations
Seeking the injunction, Rossa Fanning SC said the orders were sought because the company plans to meet next week to consider an investigation report, commissioned by the group, into certain allegations of wrongdoing against Gleeson, which are denied.
Counsel said the report is irredeemably tainted, prejudicial and breaches Gleeson’s rights to fair procedures. Counsel added that the investigator, who completed the report at the end of March, had also disregarded his own terms of reference.
The report, counsel said was fundamentally and fatally flawed.
It was essential that Mercantile be prevented from terminating Gleeson’s employment based on the report’s contents, he said.
Counsel said no witnesses were interviewed nor was an oral hearing conducted. The report’s findings seem to be based on what Mercantile provided to the investigator, counsel said.
His client had been on gardening leave since December. A number of matters were then put to Gleeson, which he responded to, counsel said. He was informed that an investigation was to take place.
Gleeson fears the group’s action will irredeemably damage his reputation and will have devastating consequences financially.
Counsel said that as part of the shareholders agreement Gleeson would be dismissed as CEO and his shareholding in Ardan would be reduced to 25% in the event he was found to have engaged in any misconduct.
Counsel said that undertakings were sought from Mercantile in advance of a planned board meeting scheduled for next Thursday that Gleeson would not be dismissed. However those undertakings were not forthcoming, counsel added.
In separate but related proceedings that are pending before the Commercial Court, Gleeson has brought proceedings that the other shareholders in Ardan are conducting the affairs of the company in a manner oppressive to him as 30% shareholder.
Gleeson is also facing a claim, also pending before the Commercial Court, by EMI-MR Investments LLC, of Delaware, USA, which is seeking the judgment of €4.6 million arising out of two loans advanced to Gleeson in 2016.
The loans were to fund the refinancing or purchase of the Bottom of the Hill pub in Finglas, Dublin, and Gleesons pub of Mulhuddart, Dublin, as well as to enable him purchase shares and to pay legacy trade creditors.
