The Court of Appeal is scheduled to hear a matter over the contentious litigation challenging a move by the Government to terminate over 300 Community-Based Environmental Protection and Enhancement Programme Company (CEPEP) contractors on October 2.
The date for the hearing was announced by the Court of Appeal in a notice issued last Friday.
The company was seeking an urgent hearing of the procedural appeal during the judiciary’s ongoing annual vacation period, but its application was refused by Appellate Judge Nolan Bereaux last week.
In the appeal, Laventille-based general contracting company Eastman Enterprise Limited claimed that High Court Judge Margaret Mohammed erred when she stayed its case and referred an aspect of it, dealing with the extension of the contractor’s days before the April 28 General Election, to Director of Public Prosecutions (DPP) Roger Gaspard, SC.
It claimed that Justice Mohammed was wrong to rule that it was required to pursue mediation and arbitration before litigation, based on a clause in its contract.
It also claimed that she should have considered its application for an injunction, staying the terminations and blocking the appointment of replacement contractors.
It stated that the judge also made preliminary findings in relation to whether Cabinet approval was required for the renewals without all the evidence in relation to such being before her and tested through cross-examination.
It also noted that the judge was wrong to refer the case to Gaspard when he (Gaspard) does not have any power of investigation.
Eastman filed the lawsuit after the contracts were terminated by the United National Congress (UNC)-led Government in late June.
Eastman contended that CEPEP acted unlawfully, as it (CEPEP) was required to immediately pay for one month’s service as it sought to terminate, based on Clause 15 of the contract, without giving notice.
The clause allows CEPEP to terminate by giving 30 days’ notice or making a payment in lieu of notice if the company fails to meet its contractual obligations or performance assessments conducted by CEPEP officials.
It is also contended that the clause is unfair and in breach of the Unfair Contract Terms Act 1985, as it gave CEPEP too wide a discretion to terminate.
Responding to the lawsuit, CEPEP raised the issue of the lack of Cabinet approval for the extensions.
It also filed an application for the case to be struck out on the basis that the company had alternative dispute mechanisms available to it.
CEPEP put forward an affidavit from CEPEP Chief Executive Officer 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.
Eddy then filed another affidavit challenging Edwards’ claims, including a transcript of WhatsApp messages between them.
He further contended that before Edwards gave the alleged assurance, he (Eddy) was personally pressured by former rural development and local government minister Faris Al-Rawi into facilitating the renewals of the contracts.
CEPEP has also threatened Edwards with legal action over his role in facilitating the renewals.
CEPEP suggested that, through the proposed lawsuit, it would be seeking an order against him to indemnify it against any losses it may sustain in relation to the extended contracts and their subsequent terminations.
It has also called on the other nine members of the board to clear the air on the authority they were acting under when deciding on the extensions. Thus far, only former board member Camille Hosein has responded and has corroborated Eddy’s claims.
Eddy has also threatened to sue Al-Rawi for defamation over statements he made in relation to his conduct in the case.
CEPEP is represented by Anand Ramlogan, SC, Kent Samlal, Jared Jagroo, and Asha Ramlal of Freedom Law Chambers. Eastman is represented by Larry Lalla, SC, St Clair O’Neil, and Kareem Marcelle.