A high-profile legal battle to decide the rights and wrongs of an embarrassing advertising agency fracas has been avoided at the last minute by an out-of-court settlement.
Hugh Salmon, former managing director of CM Lintas, and the chairman who fired him, Chris Munds, settled last week just days before the case was scheduled for hearing on April 8.
Salmon has been suing his previous employers since he was sacked from his 70,000-a-year job in October 1992, on the grounds of his bad relationships with clients.
In November 1993, Salmon issued a writ against Munds claiming malicious falsehood, alleging the sacking was unjustified and that Munds engineered it to cover his own dishonesty over personal expenses.
The writ alleged Munds was involved in an arrangement involving the booking of economy class air tickets for business trips while charging business fares.
The writ claimed the difference was charged to a travel agency account, enabling Munds and his wife to go on holiday. However, lawyers acting for Munds have denied fraud.
The malicious falsehood claims centred on statements which Salmon alleges were made by Munds accusing him of sexual misconduct. Salmon denied the allegations, and said that contrary to Munds’ claims, he had the confidence of agency clients.