High Court judge Devindra Rampersad yesterday ruled that five Clico policyholders, who brought legal action against the State for unpaid premiums in the cash-strapped conglomerate, were not entitled to pre-emptive legal costs. Rampersad is presiding over civil litigation brought by Percy Farrell and four other executive Flexible Premium Annuities (EFPAs) policyholders. They 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. Rampersad rejected the group's application, in which they asked to be paid out of the Statutory Fund to pursue their litigation further.
The Government established the fund after the institution's collapse in 2009.
In his 49-page ruling, Rampersad said the court had no discretion to interfere with the fund without regard to the risk-assessment factor. He said any such order would be subject to justified criticism, as such payment would have been made without considering the overall effect on the entire Statutory Fund.
Rampersad also ruled Section 115 of the Insurance Act was intended to insulate the fund and to ensure it was shielded. The Attorney General and Minister of Finance also were named as party to the costs application which Rampersad dismissed. They were represented by Queen's Counsel Allan Newman and attorney Kelvin Ramkissoon. The Central Bank was represented by Senior Counsel Reginald Armour, while Dr Claude Denbow, SC, and Donna Denbow are representing the group of policyholders. Clico was represented by Neil Bisnath. (DA)