A judgment in Bermuda's Supreme Court on a preliminary issue has paved the way for an aggrieved bank executive to take his former employer to court for dismissal without notice or pay in lieu of notice.

Peter Wignall, the former managing director of Bank of Butterfield's asset management arm - Butterfield Asset Management - is now poised to take the bank to court after Puisne Judge Ian Kawaley found in Supreme Court on November 18 that Mr. Wignall could be entitled to six months salary in lieu of his contract being terminated without notice or pay in lieu of that notice.

Mr. Wignall's lawyer, Alan Dunch of law firm Mello Jones & Martin, yesterday said his client would now take the next step, adding that the matter was expected to come before the courts early in 2004.

In March of this year, Mr. Wignall applied by specially endorsed writ of summons for the salary and benefits that would have normally been paid to him for termination of his employment on January 4, 2002, without notice.

However, the bank's application by summons in August, led the court to try, as a preliminary issue, whether a summary or immediate termination of employment by the bank would entitle Mr. Wignall to damages and/or contractual compensation, and whether that would be calculated to the end of his contract (27 April, 2002) or for the six month notice period.

In handing down his decision, Justice Kawaley found in favour of the plaintiff with his decision that Mr. Wignall would not be entitled to damages and/or contractual compensation through the end of his contract (27 April, 2002), but would be due six months salary calculated from his termination date in January, 2002.

Although the court found that Mr. Wignall could be due six months salary in lieu of notice not given, it said the question of whether or not Mr. Wignall's employment was in fact terminated in January would be "reserved for trial".

Mr. Wignall, who was also senior vice-president, asset management, is believed to have worked at the bank from 1996. Court documents did not reveal why his employment with the bank was suddenly terminated in January of last year. Indeed, Mr. Dunch said that no reason had been given for Mr. Wignall's termination without notice.

A Bank of Butterfield spokesperson declined to comment, saying it was the bank's policy not to comment on matters that are "sub judice", or still awaiting judgment by the court.