Tim Wheeler, the former chief executive of industrial REIT Brixton, has launched an unfair dismissal claim against his former employer.
Wheeler, who was asked to stand down in March after more than 24 years with Brixton, has lodged a claim with the Central London Employment Tribunal.
It alleges “unfair dismissal, failure to provide a written statement of reasons for dismissal, and breach of contract”. Damages from a successful claim could eventually run into millions of pounds.
Wheeler has appointed law firm Farrer & Co – known as “the Queen’s solicitors” because it has worked for the Royal family for more than 200 years’ – to represent him.
Brixton – which was this week seeking a new buyer for its £200m Equiton portfolio (p18) – was served notice of the claim by the Tribunal Service on 26 June. It has until 26 July to respond.
Should Brixton contest the allegations and lose, awards to Wheeler from the tribunal would be capped at £66,200 for unfair dismissal and £25,000 for breach of contract.
However, if the tribunal were to recommend damages at a higher level, Wheeler would be able to approach the high court for a larger sum.
In 2008, Wheeler took home a total remuneration package of £739,000 – including a basic salary of £563,000 – down from £1.2m in 2007.
Sue Ashtiany, partner and head of employment law at solicitors Nabarro, said that taking claims from the tribunal to the high court was a common tactic among senior executives.
“A tribunal claim is relatively low risk, quick and informal,” she said. “Because the claimant does not stand to pay the other side’s legal costs, he can predict his exposure, and very often a senior executive will launch a claim knowing that all kinds of evidence will come out that could be useful for them in any high court action.”
She added: “If the decision is not overturned on appeal, whatever finding the tribunal makes will be effective for the high court.
“The final claim in such cases could be very significant and run into millions.”
The case is not expected to have any effect on the proposed £109.4m takeover of Brixton by its rival SEGRO, which is due to be completed next month.
A Brixton spokesman said: “We have and intend to continue to honour our contractual commitments to Tim Wheeler. We confirm we have received a claim from Mr Wheeler but believe this has no merit and we will vigorously defend it. We do not regard the claim as material in respect of the Company’s business or the offer made for the Company.
“As the dispute is subject to litigation, it would be inappropriate to comment further at this stage.”
