Senior Reporter
derek.achong@guardian.co.tt
A Community-based Environmental Protection and Enhancement Programme Company (CEPEP) contractor has failed in its bid to revive its lawsuit challenging a mass termination exercise at the State company.
Delivering a judgment, yesterday morning, Appellate Judges Peter Rajkumar, James Aboud, and Ricky Rahim dismissed Eastman Enterprise Ltd’s appeal over the decision of a judge to stay the case based on its failure to engage in mediation and arbitration before litigation.
Justice Rajkumar, who delivered the panel’s judgment, stated that High Court Judge Margaret Mohammed could not be faulted for staying the case based on Eastman’s conduct after its contract and those of over 300 fellow contractors were terminated based on a Government directive in June.
“No basis has been demonstrated for concluding that the trial judge’s exercise of her discretion to grant a stay was plainly wrong,” Justice Rajkumar said.
“The stipulation that it (alternative dispute resolution) is a condition precedent to approaching the court was clear and express,” he added.
He also noted that the company could not seek an interim injunction stopping the terminations without signalling its intention to pursue arbitration.
“In this case, it is clear that arbitration could not have been contemplated because the appellant disputed the applicability of arbitration and mediation in the first place,” Justice Rajkumar said, as he noted that there was no evidence that the process was initiated while the appeal was still pending.
However, he ruled that Justice Mohammed wrongly referred preliminary contentious allegations over the mass renewal of contractors days before the general election in late April to the Office of the Director of Public Prosecutions (DPP).
“The referral by the court to the DPP on incomplete and untested material in respect of which necessary parties had not had an opportunity to respond was premature and plainly wrong,” Justice Rajkumar said.
“This was especially so when no opportunity to respond had arisen in the proceedings for parties in respect of whom serious allegations had been made,” he added.
Justice Rajkumar also rejected Eastman’s claim that CEPEP was required to make a payment in lieu of notice while simultaneously terminating its contract with immediate effect.
However, he ruled that if Eastman seeks to pursue the case after engaging in mediation and arbitration, it should be heard by a different judge.
Eastman filed the lawsuit after the contracts were terminated by the United National Congress (UNC) Government in late June.
Responding to the lawsuit, CEPEP’s lawyers, led by Senior Counsel Anand Ramlogan of Freedom Law Chambers, raised the issue of the lack of Cabinet approval for the contract extensions.
They put forward an affidavit from ongoing CEPEP chief executive Keith Eddy, who claimed that former chairman Joel Edwards gave assurances to him and the company’s board that Cabinet had approved the renewals before they approved such.
Edwards provided an affidavit in response, on Eastman’s behalf, in which he claimed he never gave such assurances and sought to correct a board note over the renewals that indicated that it was being done with the blessing of the then-Cabinet.
He later claimed that the extensions were done based on a Cabinet minute from 2017, which he claimed gave the State company the autonomy to decide on such without Cabinet input.
CEPEP was also represented by Kent Samlal, Jared Jagroo, and Asha Ramlal. Larry Lalla, SC, St Clair O’Neil and Kareem Marcelle represented Eastman.
Responses to Appeal
Court judgment
In a statement issued yesterday, the People’s National Movement (PNM), which assisted Eastman with the case, said its attorneys would now have to consider alternative dispute mechanisms.
“The PNM supports the steps to bring relief to the over 320 contractors and the over 11,000 workers affected by the callous and uncaring UNC government,” it said.
“Actions in judicial review and in the Industrial Court to protect the livelihoods of the thousands of victims of mass firings are ongoing with no stone being left unturned,” it added.
Guardian Media understands Eastman’s lawyer, Kareem Marcelle, wrote to DPP Roger Gaspard, SC, after the Appeal Court ruling to inform him of the court’s decision in relation to referral of the fraudulent misrepresentation claims related to the renewals.
In a press release, CEPEP said it would consider taking separate legal action over the contract renewals based on the Appeal Court’s reversal of the referral to the DPP’s Office.
“CEPEP, however, remains committed to the pursuit of justice in this matter and has sought legal advice on the fraudulent misrepresentation perpetuated on the company by the former chairman,” it said.
“To this end, it will pursue all legitimate avenues open to it in the interest of justice and public administration,” it added.
Speaking with Guardian Media before attending Parliament yesterday, Public Utilities Minister Barry Padarath, under whose purview CEPEP falls, said that the company would be seeking legal advice on whether to challenge the referral issue before the Privy Council.
“I respect the ruling of the appellate judges, but it is not the final ruling because we do have the opportunity to challenge this at the Privy Council,” Padarath said.
He also revealed that the T&T Police Service (TTPS) is expected to be asked to probe the alleged removal of documents related to the contracts from CEPEP’s offices, which he claimed occurred recently.
“We feel very comfortable in the actions we have taken, but what we are a bit uncomfortable with is why files are being moved out hurriedly from CEPEP as it relates to some of these contractors,” Padarath said.
