Former IFA boss to get €1.9m as actions settled
Organisation accepts it defamed Pat Smith
THE Irish Farmers’ Association (IFA) accepted that it defamed its former general secretary Pat Smith after legal actions were settled outside the High Court.
The IFA confirmed that Mr Smith is to receive €1.55m in relation to his severance claim and €350,000 in relation to his defamation claim.
Mr Smith resigned from his post as IFA general secretary in November 2015, amid speculation around his salary and pressure for it to be disclosed.
A statement read out in the High Court by lawyers for the IFA said that both sets of legal proceedings taken by Mr Smith have been settled – namely, the action for breach of contract in relation to the terms of his departure from the IFA, and a separate defamation action relating to statements and comments made subsequent to his departure.
It also said: “IFA accepts that Mr Smith was a highly effective, hard-working and dedicated executive of the association, who provided solid and professional leadership for farmers and the association.
“IFA accepts that it made certain statements in the media at the time which were defamatory of Mr Smith and regrets the damage caused to his reputation. IFA wishes Pat Smith and his family the very best for the future.”
Mr Smith said his agreement with the IFA on his exit centred around a €1m exit package and a further €1m in yearly €100,000 instalments.
He said the €2m exit package was agreed with the former IFA president Eddie Downey.
Mr Downey later resigned from his position and the IFA executive council voted against the package, with the association saying at the time that it would explore all legal avenues to challenge any severance package for Mr Smith.
Mr Smith then brought two legal actions against the organisation, including one seeking orders requiring it to pay him
€2m via payments of €1m now and a further €1m over the next
10 years.
In his second case, Mr Smith alleged that he was defamed by the IFA and issued a claim for damages, including aggravated damages.
However, despite the IFA saying it would challenge Mr Smith’s legal claims, they were yesterday settled.
Later, Mr Smith said that as far as he was concerned, the matters in dispute were now closed and he looked forward to developing a successful future with his new business in the renewable energy sector.
He said it had been a great honour to work for Irish farmers and the agri-industry and he wished farm families and the sector every success for the future.
IFA president Joe Healy, who was on his way to Brussels to chair a key meeting on the issues surrounding the common agricultural policy (CAP), yesterday said: “I am pleased and relieved it is over.
“It allows us to focus on the issues that are key to our members, such as commodity prices, farm incomes, CAP, climate change, Mercosur and Brexit.
“The reaction was good at the IFA council meeting to the settlement.
“Members felt it was good for the organisation to have it settled.
“We brought in legal advice to council so members could ask questions.
“The strong advice to us for the last while was that this would be better off settled for a number of reasons.”
He said the reasons included the ongoing legal costs of the two cases, plus the negative publicity of it going to court.
Mr Healy said that the IFA had pledged to be transparent to its members and had been open with them on the settlement.
The €1.9m settlement does not include costs for either side.