by Shawn Cumberbatch
A highly contentious legal battle over an abandoned $65 million deal to purchase the Kings Beach Hotel is set to ensue in spite of the property’s subsequent sale.
Roseal Services Limited, a company with an ownership stake in the once operational St. Peter tourism venture’s mortgagee, is set to battle it out in court with Michael L. Challis, Marcus J F Clarke and Anthony Reid. This, Barbados TODAY learnt, was after Roseal failed to get the Barbados High Court, Court of Appeal and Caribbean Court of Justice to award it a summary judgement against the three individuals.
Having heard that the hotel property was sold the CCJ has order that a “breach of contract suit” now “proceed to a speedy trial” as originally directed by a Barbados High Court judge.
Additionally, last week the regional court issued a number of orders after a four-member panel heard the Roseal appeal. Those orders stated:
“The Notice of Appeal filed on February 20, 2009 is hereby struck out. The orders of the Court of Appeal contained in the written judgment dated June 11, 2010 are hereby set aside save as to the order as to costs contained therein.
“The orders of the Court of Appeal … made on June 11, 2010 and settled on October 22, 2010 as well as the orders of December 1, 2010 are hereby quashed save that the sum of $650,000 already paid into court on account of the respondents costs in the Court of Appeal shall remain deposited into court until further order.
“The order that the Appellant shall pay the costs of the applications … quantified at Bds $7,500 shall stand. The proceedings before the Registrar and the Registrar’s Certificate dated March 18, 2011 are hereby treated as valid provided that the Appellant shall be at liberty to proceed upon the Notice of Appeal filed on March 25, 2011 challenging that certificate. The CCJ also ordered Roseal to “pay the respondents costs in this court, including the costs of the application filed on January 11, 2011 for leave to appeal to this court, certified fit for two attorneys-at-law, to be assessed in default of agreement”.
Having failed to get a summary judgment, Roseal’s lawsuit to recover millions of dollars will now proceed based on the CCJ decisions. It was in August last year that former Kings Beach owner Martin Richards confirmed the lawsuit against Challis, Clarke and Reid would be pursued.
“The three people that didn’t complete the contract we intend to make sure that they will now be held responsible for the difference between what they contracted to buy it for and what it has actually been sold for,” he said then.
“They are being sued for specific performance of their contract and when the bank completes the sale that litigation will continue, only now that damages will be sought rather than specific performance of the contract.” [email protected]