PAGBAM obtained a favorable ruling from the Argentine Supreme Court of Justice in the case "Recursos de hecho deducidos por Andrea Mangoni (CSJ 114/2014 (50-O)/CS1); por Gerardo Werthein (CSJ 123/2014 (50-O)/CS1) y por Enrique Garrido (CSJ 115/2014 (50-O)/CS1) en la causa Oviedo, Javier Darío c/ Telecom Argentina S.A. y otros s/ despido".
The Supreme Court overturned the personal liability imposed on the directors of Telecom Argentina S.A., including our client, without prejudice to the liability attributed to the defendant companies.
In its decision, the Court addressed the delicate issue of personal liability of corporate directors in labor litigation, reaffirming essential principles of corporate law and due process.
The ruling emphasized that the legal separation between the company and its directors is a fundamental and precise rule of corporate law that judges must respect. It also noted that directors cannot personally review every decision made in the normal course of business operations, and that holding them personally liable requires a thorough examination of the evidence and their specific involvement in the events under dispute.
The Court was particularly critical of the appellate court for imposing personal liability based on dogmatic reasoning and without proper analysis of the accounting and testimonial evidence. It also highlighted the failure to assess whether the directors’ actual time in office coincided with the hiring of the plaintiff—an essential element in determining potential liability.
The Supreme Court clearly stated that extending joint and several liability to corporate directors requires "clear and convincing evidence" of their personal involvement and misconduct in the performance of their duties—criteria that, according to the ruling, were not met in this case.
At PAGBAM, we celebrate this important outcome, which goes beyond the individual case and sets a valuable precedent that strengthens legal certainty for those serving on corporate boards. We also congratulate our Labor Law team for their dedication and legal excellence throughout all stages of the proceedings.
