QC Fred Smith representing former DRA managing director in court case
NASSAU, BAHAMAS — Former Disaster Reconstruction Authority (DRA) Managing Director Katherine Forbes-Smith is seeking contractual damages to the tune of over $408,000 for an alleged breach of her contract.
According to a writ filed in the Supreme Court against the DRA, Forbes-Smith is seeking contractual damages totaling $408,333.16, which includes $238,333.16 for 26 months’ salary; $65,000 in housing allowance; $32,500 in duty allowance; $6,500 in fuel allowance; and $66,000 in gratuity entitled at the end of her contract.
Forbes-Smith stepped down as Senate president in December 2019 to head the DRA under the Minnis administration.
She was employed on a four-year, fixed-term contract with effect from December 3, 2019, according to the writ.
Her contract would have expired on November 30, 2023.
Under her contract, Forbes-Smith was paid $110,000 per year in monthly installments of $9,166.66.
She was entitled to an annual housing allowance of $30,000, in monthly installments; annual duty allowance of $15,000, in monthly installments; a monthly fuel allowance of $250; and gratuity representing 15 percent of the sum received under the contract upon expiration.
While Forbes-Smith was required to provide six months’ notice of her intention to terminate the contract prior to the expiration date, the contract made no provision for the DRA to terminate before its end.
The writ alleged that the DRA, in breach of the contract, terminated Forbes-Smith effective immediately on September 29, 2021, via a letter from the Office of the Prime Minister — nearly two weeks after the general election that saw the Minnis administration voted out.
“At all material times, Ms Smith properly and competently performed her duties and obligations as required under the contract,” read the writ.
It added: “The DRA has wrongfully terminated the contract 26 months before the expiration date.
“In so doing, it has acted in breach of the contract.”
When contacted, Forbes-Smith said she had no comment, but directed questions to her attorney, Fred Smith, QC, of Callenders & Co.
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