Former chief executive Richard Houghton and ex-international director Ken Edmonds claim that their dismissals were 鈥渨rongful and unlawful鈥� because they were not given 12 months鈥� notice before their contracts were terminated.
Houghton and Edmonds were voted out at a boardroom meeting on 30 March. Both claims, which were filed by their lawyer Simmons & Simmons on 4 May, describe the meeting as being convened 鈥渙stensibly to discuss the defendant鈥檚 [MDA鈥檚] future鈥�.
At the time, MDA had recently been through abortive talks with support services company High-Point Rendel.
The claims continue: 鈥淎t the meeting, [each] claimant was asked to resign as a director but refused to do so. The claimant鈥檚 employment was then terminated with immediate effect by Mr Simon Metcalf, the defendant鈥檚 chairman, and confirmed by a letter dated 30 March 鈥︹��
MDA is now headed by former non-executive directors Metcalf and John Castle.
Houghton, who had been a director of MDA since 1 July 1992, and chief executive since 1 July 1997, is claiming 拢84 882.32. Edmonds is claiming 拢85 080.11.
Edmonds had been an executive director since 14 August 1989. His claim also states that: 鈥淪ince the dismissal the claimant has undergone surgery and to date has not been able to take reasonable steps to mitigate his loss.鈥�
The claims detail both directors鈥� salaries and benefits. Houghton received a fixed salary of 拢85 000 with a possible 拢22 000 bonus from 鈥渆arnings at risk鈥�. Edmonds received 拢71 000, with up to 拢18 000 from the same scheme.
Both also received other benefits, including hotel and travel expenses and company cars.
In their claims, Houghton and Edmonds said they performed their duties under their contracts of employment 鈥渓awfully and faithfully鈥�.
MDA was unavailable for comment on Wednesday. It must now consider its formal response to the claims.
