Coalcorp former directors win right to maintain suits
2009-07-07 13:07 ET - News Release
Mr. Richard Wertheim of Wertheim + Company reports
SUPERIOR COURT OF JUSTICE - ONTARIO RULES SUITS BY FORMER EXECUTIVES OF COALCORP MAY PROCEED
The Superior Court of Justice of Ontario has dismissed an effort by Pala Investment Holdings Ltd. (PIHL) and Pala Asset Holdings Ltd. (PAHL) to block suits claiming wrongful dismissal and defamation brought by five former executives of Coalcorp Mining Inc. from proceeding in Ontario.
PIHL effectively controls Coalcorp having acquired 44 per cent of the company's outstanding common shares.
The suits claiming wrongful dismissal and defamation were filed in March, 2009, against Coalcorp, PIHL, PAHL and Joseph Belan, who at the end of 2008 was seconded from his position as managing director of Pala Investments AG (adviser to PIHL and PAHL) to serve as interim chief executive officer of Coalcorp.
The suits seek payments due under contractual agreement, breach of contract, wrongful dismissal and misrepresentation in amounts ranging between $208,000 (U.S.) and $664,166 (U.S.), plus punitive damages in the amount of $150,000 each.
In dismissing the motions, which were brought on jurisdictional grounds by PIHL and PAHL, the court awarded the partial reimbursement of costs to the former Coalcorp executives. The executives now will continue to proceed with the suits that they have filed against PIHL, PAHL, Coalcorp and Mr. Belan.
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