Hollinger director sues over 'unfair dismissal'

A director of Hollinger International sacked on the day Lord Black stood down as chief executive over a $32.15m (£18.42m) unauthorised payments scandal is suing for wrongful dismissal.

Jack Boultbee, an executive vice-president of Hollinger, was paid $600,000 in 2000 and 2001 in non-compete fees which were later found by a special internal committee to be unauthorised.

Don Jack, Mr Boultbee's lawyer, told The Independent yesterday that a number of other defendants might join the action as the recriminations over the year's biggest corporate scandal begin.

Mr Boultbee is claiming wrongful dismissal and demanding compensation likely to top $1m. He claims his reputation has been damaged and that the company stopped him exercising share options.

Mr Boultbee does not believe he should have to repay the money. The other three Hollinger directors involved in the scandal, including Lord Black himself, agreed to hand back their share of the cash and leave their jobs.

When the scandal broke in mid-November, a statement from Hollinger said: "The executive committee terminated the employment of Mr JA Boultbee after failing to reach an agreement with him on several matters."

Mr Jack said: "He was told to resign or be dismissed. He didn't resign. He was told to repay the $600,000 and he has refused to do that because he understood they were authorised. He is making a claim for wrongful dismissal and will be seeking substantial damages."

The other directors who agreed to leave their jobs in November were David Radler, the president and chief operating officer of Hollinger International, who received $7.2m, and Peter Atkinson, a board director who received $600,000. Lord Black received $7.2m while Hollinger Inc, a company controlled by Lord Black, received £16.55m.