Channel Islands Coop wins appeal overturning £600,000 payout ruling

Channel Islands Co-op wins appeal overturning £600,000 payout ruling, court reverses previous decision in a significant legal victory for the cooperative.

Channel Islands Coop wins appeal overturning £600,000 payout ruling
Liberal News
Publish: 07.09.2026
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Coop wins appeal over former CEO’s £600,000 payout

The Channel Islands Co-operative Society successfully appealed a ruling that would have required it to pay its former chief executive, Colin MacLeod, £600,000 after he claimed unfair treatment left him with a psychiatric injury.

Judges accepted that some directors ran an unfair and inappropriate campaign against MacLeod, including secret meetings without records, failure to raise concerns through formal channels and targeted expenses audits. The Royal Court’s earlier finding of liability was overturned when the appeal court concluded it was not reasonably foreseeable that MacLeod would sustain psychiatric harm.

The court acknowledged a “deliberate campaign” to remove MacLeod and found the conduct of three directors amounted to bad faith, but said MacLeod was a strong personality with no known pre-existing vulnerability to psychiatric injury. While his distress, anger and upset were considered foreseeable, the judges ruled the threshold for psychiatric harm was not met, reversing the earlier £600,000 award.

Liberal News Analysis: What Does This Development Mean?

The appellate judges distinguished between misconduct by directors and legal responsibility for psychiatric injury, noting factual findings of secret meetings and targeted audits but concluding those actions did not make psychiatric harm reasonably foreseeable for this individual.

Quick Glance: What You Need to Know

  • The Channel Islands Coop won its appeal against a £600,000 payout to former CEO Colin MacLeod.
  • Court found a deliberate campaign and bad faith conduct by three directors but ruled psychiatric injury was not reasonably foreseeable.
  • The Royal Court’s liability finding was overturned on appeal.
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