Cons. Trillion ex-manager files termination suit
Consolidated Trillion Resources Ltd TLQ
Shares issued 4,811,510 Mar 30 close $0.80
Tue 30 Mar 99 Street Wire
by Brent Mudry
Consolidated Trillion Resources faces a wrongful dismissal suit from its
former exploration manager for Zimbabwe, terminated a year after moving to
the African country with his family on a three-year contract. In a
statement of claim filed Monday in the Supreme Court of British Columbia,
Patrick Donovan seeks $150,000 (U.S.) in contract salary and assorted
relocation-related expenses. The named defendants are Consolidated Trillion
and Trillion Zimbabwe, its subsidiary, which oversees the company's
exploration interests in Zimbabwe, Mozambique, Botswana, Mali, South Africa
and the Ivory Coast. Mr. Donovan notes he was hired on Oct. 5, 1996, as a
consultant for African operations for Trillion, and he was promoted to the
position of exploration manager for Zimbabwe on Jan. 1, 1997.
The geologist claims the three-year employment contract required him to
move with his wife and children from Quebec and relocate in Harare. Lawyer
Geoffrey Howard of Gowling Strathy & Henderson notes Mr. Donovan sold his
house in Quebec and most of his other personal assets. The contract called
for Mr. Donovan to be paid a $65,000 salary in the first year, increased to
$75,000 (U.S.) in the second year. The salary was to be deposited, tax free
into the geologist's offshore bank account in the Channel Islands, as he
would be a non-resident of Canada for Canadian tax purposes. Trillion also
allegedly committed to pay Mr. Donovan an additional $17,500 (U.S.) salary
in Zimbabwe and provide him with free housing, a gardener, a maid, a
security guard, a company vehicle and a $10,000 (U.S.) annual education
allowance for each of his children. Mr. Donovan claims Trillion also
promised to pay his relocation costs when he returned to Canada.
The suit claims Mr. Donovan was suddenly terminated on Dec. 5, 1997,
without notice or cause. Mr. Donovan also claims that Trillion
"maliciously" told immigration authorities in Zimbabwe on Feb. 12, 1998,
that he and his family were improperly and illegally residing in the
country. The suit claims the geologist and his family were ordered deported
five days later, and he was forced to hire an immigration consultant so his
children could finish their school year. Mr. Howard seeks assorted general,
special and punitive damages. Statements of defence have not yet been
filed. "We had to wind down that department due to market conditions,"
vice-president Michael Halvorson told Stockwatch.
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