Ex-AA chief seeking £225m in damages for dismissal following fight with another executive

AA is facing a £225m claim for damages by its former boss, who was dismissed for gross misconduct after fighting with another executive.

Ex-executive chairman, Bob Mackenzie is seeking the sum, as well as a claim to retain shares in the company which he lost as a result of the dismissal.

The AA confirmed the lawsuit in its yearly results this morning.

It said: “On 7 March 2018, the Group received notification that former executive chairman, Bob Mackenzie, who was dismissed for gross misconduct on 1 August 2017, had on 6 March 2018 issued a Claim Form in the High Court, Chancery Division against AA plc, its subsidiary Automobile Association Developments Limited and personally against a number of their directors and the Company Secretary. The Claim Form seeks a permanent injunction to retain his MVP shares and up to £225m in damages.”

The company also stated that it had not made provisions for the claims as it expects to be successful in “rigorously defending” the claims.

Mackenzie’s attack, which was aimed at colleague, Mike Lloyd, was caught on camera.

Mackenzie blamed the outburst on a cocktail of alcohol and drugs as the pressures of leading the company took its toll on him.

In its full-year report, the AA reported that its insurance trading grew 11% to £145m for the year to January, with the division’s trading earnings before interest, tax, depreciation and amortisation (EBITDA)up 8% to £71m.