Justice Orders M&M Insurance to Compensate Former Managing Director Omar Daniel

Introduction
In a significant ruling, Justice Frank Seepersad has mandated M&M Insurance Broking Services Ltd to pay its former managing director, Omar Daniel, over $2.1 million. This decision, delivered on September 11, 2023, stems from a contentious legal dispute regarding his retirement benefits.

Background of the Case

Omar Daniel served as the managing director of M&M Insurance for nearly 40 years before departing from the company in 2021. The legal proceedings unfolded in the Waterfront Judicial Complex, Port of Spain, with the trial occurring on September 9. The two parties struggled to reach an agreement on a settlement, prompting Justice Seepersad to step in.

Retirement Package Dispute

Daniel’s contract included several key elements proposed by the company’s former chairman, Steve Castagne, in 2013—just one year before Daniel turned 60. These promises included:

• A $1 million continuity bonus, to be disbursed in two installments: one at age 60 and the other after five additional years.
• Commission for managing an overseas plan as per Castagne’s request.
• A townhouse in a residential complex located in Maraval, which Castagne was developing.
• A monthly pension lasting ten years post-retirement.

Evidence and Rulings

During the trial, Justice Seepersad determined that M&M Insurance had a pension plan in place as of April 2004. He noted that Castagne assured Daniel that benefits would be ensured if he continued in his role, even as management practices appeared to deviate from strict board protocols.

Seepersad emphasized that there was “unambiguous evidence” of the company’s commitment to a pension plan set to commence on January 1, 2004. He concluded that M&M Insurance had an obligation to adhere to the terms outlined in the retirement agreement.

Compensation Breakdown

The judge’s ruling confirmed that Daniel is entitled to:

• A portion of the continuity bonus.
• Ownership of the apartment in Saddle Valley development.
• Commissions related to the overseas plan.
• An enhanced benefit lump sum based on his contributions.

Despite these victories, Daniel’s requests for the reimbursement of his National Insurance Scheme (NIS) contributions post-60 years of age and for a different apartment in One Woodbrook Place were denied.

Judge’s Call for Amicable Resolution

Justice Seepersad noted that many of the claims made by Daniel had been acknowledged by M&M Insurance. He urged both parties to engage in discussions to resolve outstanding issues, offering a 28-day stay of execution for the company to comply with the ordered payments.

“I am strongly urging the parties that these issues can be amicably resolved to bring finality to this matter,” Seepersad remarked, advocating for a resolution that benefits all involved.

Final Thoughts

The case highlights the complexities involved in retirement agreements within corporate settings, particularly when changes in leadership may impact previously established commitments. The ruling not only reinforces the importance of honoring contractual obligations in the workplace but also sets a precedent for similar cases in the future.

Conclusion
Omar Daniel’s successful claim against M&M Insurance serves as a critical reminder of the necessity for clear communication and documented agreements in professional environments. As this case progresses, it remains to be seen how M&M Insurance will navigate the final steps in fulfilling its obligations to Daniel.