Judge gives reasons for dismissing Permell’s claim

Justice Devindra Rampersad yesterday released the judgment outlining the reasons for appointing Percy Farrell as representative of all of Clico’s Executive Flexible Premium Annuities (EFPAs) policyholders, who have not accepted the Government’s bail-out proposals. The decision was delivered orally by Justice Rampersad in the Port-of-Spain High Court on July 29, last year. Rampersad  is currently presiding over civil litigation brought by Farrell and four other EFPA policyholders who are seeking to recover investments in Clico, which is being propped up by the Government and the Central Bank. The group consists of Farrell, Marina Inalsingh, retired UWI professor Gordon Rohlehr, David Dayal and Michael Alexander. In the 25-page ruling Rampersad noted that there were approximately 14,000 policyholders in Clico and that it would be “more expedient and efficient use of the court’s resources to appoint a representative.”

Rampersad described the matter as important and ‘a public interest claim”. In appointing Farrell, Rampersad dismissed an application from the 400-member strong, EFPA Policyholders’ Group led by its president Peter Permell, to be added as a party to the proceedings. “In the court’s view, while indeed it is established that the group is a not-for-profit company, it has not been likewise established that the company is a proper party to represent the interests of its purported 422 registered members. “This is a highly sensitive matter, and should therefore not be lightly treated...This court cannot take the group’s assertion that it represents a body of 422 EFPA policyholders, without more, at face value,” Rampersad said. However, in dismissing the group’s application to join the proceedings, Rampersad said “this does not suggest that the application was unwarranted, frivolous or unreasonable”.

Rampersad said that it was Farrell’s group that had initiated the proceedings and he was well suited to represent the policyholders. Farrell and his group are being represented by Senior Counsel Dr Claude Denbow and attorneys Dharmendra Punwasee and Donna Denbow. Clico’s legal team for the matter includes Reginald Armour, SC and Simon de la Bastide. At a case management conference last Wednesday, Rampersad adjourned the matter to April 26 to 27 when the trial in the matter is expected to commence.