The Western Cape High Court has confirmed that celebrated chef Rikku O’Donnchu, who runs Riku Chef’s Counter in Woodstock in Cape Town, has become embroiled in a legal tangle that spans continents, leaving him with a R30-million bill for damages.
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In February 2021, just two and a half months after being appointed executive chef at the family-owned restaurant, Stone Hill Kitchen (SHK) in Montana, US, at an annual salary of $100,000 (R1.8 million), he resigned to take up the same position at Amorette, a fine-dining restaurant in Pennsylvania, US.
Incensed by his actions, SHK summoned the British-born celebrity chef, who works as a consultant for Riku Chef’s Counter in Woodstock, Cape Town, to an arbitration hearing, where the restaurant was awarded $1.6 million (R30.3 million) in damages on 30 May, 2022.
The American Arbitration Association, presided over by W Nels Swandal, awarded damages of $576 983 for breach of contract and $596 813 for ‘tortious interference with business relations, constructive fraud, fraud, and misappropriation of trade documents.’
SHK was awarded an additional $400,000 in punitive damages and $65 200 in legal fees.
Webber Wentzel, acting on behalf of SHK, obtained an order in the Western Cape High Court in May recognising the foreign judgement.
O’Donnchu did not appear at either the arbitration hearing in the United States or the High Court case in Cape Town.
According to the arbitration hearing transcript, O’Donnchu ‘represented to SHK that he intended to remain in its employ.’
On 2 March, 2021, he met with SHK management to discuss his philosophy and proposed direction for the restaurant, and on 3 March, 2021, he presented new menu items for management approval.
‘O’Donnchu knew that he did not intend to remain at SHK. He submitted his résumé for the executive chef opening at Amorette prior to 29 March 2021. He began soliciting employees to join him at Amorette on or before 15 April 2021. Amorette sent confirmation to Rikku of his acceptance of the executive chef post on 20 April 2021,’ the transcript read.
It was alleged that he disclosed confidential information or ‘trade secrets’ to Amorette in order ‘to advance his career opportunities with them.’
His agreement with SHK states that ‘all recipes, menus, item descriptions, and tasting notes’ are considered ‘works made for hire’ under US copyright law.
‘He revealed SHK’s trade secrets by sending Amorette menu ideas created while he was an employee at SHK. He did not seek or obtain SHK’s permission to disclose these trade secrets, which were SHK’s property.’
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O’Donnchu described himself at SHK as ‘a creative and innovative chef who had worked for several Michelin-starred chefs and restaurants such as the French Laundry and The Fat Duck.’
According to the transcript, Stephanie Meyers, SHK’s general manager, asked him why he wanted to move across the world to Bigfork, Montana.
He informed her that his girlfriend was pregnant and that he was excited to become a father, but that ‘life in South Africa was not what he wanted for his child.’
During the interview, Meyers informed him that the majority of SHK’s revenue was generated during the summer tourist season, which ran from May to September.
O’Donnchu informed her that he was a British citizen, and his girlfriend was South African.
He also sent an email stating ‘salary wise … if we can get as close to $100 000 as possible, then it puts me in a position similar to our current lifestyle based on home rentals/car and travel in Montana’.
‘Is this something that is possible? I’ve spoken to Megan [his girlfriend], she’s very happy for me to peruse (sic) this project as it has longevity in a future partnership and prospects for both of our careers moving forward and looks like the perfect place to bring up a wee one.’
On 12 June, 2020, he signed the final written employment agreement with SHK for a period of three years.
Around the time of the Covid-19 pandemic, the US intended to reinstate a travel ban from South Africa, and SHK took immediate action to coordinate his flight arrangements. SHK agreed in writing to advance the entire cost of the airfare of $5 970, as O’Donnchu stated he ‘did not have sufficient available credit or funds to pay for his and his family’s travel.’
SHK had previously agreed to reimburse $2 500 of his airfare, leaving him responsible for the remaining $3 470.
He arrived in the United States with his wife and child on January 29, 2021, and began working as executive chef on 7 February.
However, things did not go according to plan.
‘Within days of commencement of his services, O’Donnchu mentioned to a group of people assembled in the dining room of SHK that a representative from Eleven Madison in New York [one of the world’s best restaurants] had been texting him, asking if he was in the US, and inviting him to come and work in New York.’
SHK informed him that the only way this could happen was if Eleven Madison agreed to pay SHK to buy out O’Donnchu’s contract.
According to the document, SHK made extensive preparations for marketing the restaurant during the upcoming summer season.
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‘These efforts focused on him joining SHK and highlighting his unique menu items.’
He was also intimately involved with the design and concept of the renovated kitchen.
‘Unbeknown to SHK, while he was insisting on a kitchen remodel, he was engaged in active discussions with Amorette to join the Amorette team as executive and/or patron chef.’
On 28 March 2021, he applied for the executive chef position at Amorette, and it was proposed that he would make $120 000.
‘O’Donnchu did not advise SHK that he was intending to resign on 19 April 2021, nor has he paid SHK the monies he acknowledged he owes to SHK.’
According to the document, SHK closed on 25 May 2021 ‘as a direct result of his breach’ and it remained closed until it was able to retain a new executive chef and ‘reconstitute the kitchen’.
‘It took SHK almost nine months to recover its customer base and rebuild local word of mouth that SHK was an available dining option at the quality it was prior to its closure.’
The transcript stated that SHK was forced to turn away 671 dinner guests in July, 829 in August and 485 in September and that the lost revenue from the unseated guests alone was shown to be $188 575.
Meanwhile, O’Donnchu told News24 that he did not breach the contract because he and his family were unable to find housing in Montana.
He stated that when he arrived at the restaurant, it was not in very good condition.
O’Donnchu put out a proposal for some kitchen equipment, which I believe totalled about $120,000.
He said he eventually returned to South Africa after his girlfriend’s parents became ill and died.
O’Donnchu stated that he was unable to attend the High Court case in Cape Town because he was hosting a charity dinner for retired professional golfer Gary Player in Florida, USA.
He denied encouraging other employees at SHK to relocate to Amorette.
He worked at Amorette for approximately six months.
He alleged that the restaurant was ‘in the middle of nowhere’, adding that he does not have R30 million to pay SHK and he does not have any assets in South Africa.
Court documents were served on O’Donnchu’s restaurant by the sheriff of the High Court on 1 March 2024 according to Sikelelwa Fumile, an associate at Webber Wentzel.
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Picture: Chef Rikku/Facebook