Court of Appeal orders port authority to pay retired workers almost $40 million

The Port Authority of Jamaica (PAJ) has been ordered by the Court of Appeal to pay nearly $40 million with interest to two former senior executives of the government-owned entity.

The ruling overturns a 2017 ruling by the Supreme Court that the PAJ did not act in breach of its duty of good faith to the appellants and did not act irrationally in declining to grant retirement benefits to Beverly Williamson and Richard Roberts.

Williamson retired on June 30, 2016, after 21 years of service to the PAJ under a total of eight consecutive contracts of employment, while Roberts retired on December 31, 2014, after 16 years of service under several consecutive contracts of employment.

Both were denied retirement benefits after they retired.

But, in a judgment handed down today, the Court of Appeal found that the two employees were entitled to retirement benefits as stated in their respective contracts.

As a result, the court ruled that the PAJ is contractually obligated to pay a discretionary retirement benefit in accordance with the contracts of employment.

The appeals court ruled that Williamson should be paid $22.3 million at three per cent interest per annum from June 30, 2016, until the date of payment.

With regard to Roberts, he should be paid just over $16 million with three per cent interest per annum from December 31, 2014, until the date of payment.

The agency was ordered to pay legal costs for the former employees.

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