–claims bias, wants CJ off case
Acting Chief Justice Ian Chang was set to rule yesterday in the Clico (Guyana) case, which has dragged out in the High Court for almost a year, but the company managed to secure an interim order to stay the proceedings.
The Christmas Eve drama unfolded for several hours in the High Court before Justice Franklin Holder when Senior Counsel Ashton Chase entered an appearance before the judge to have the interim order discharged. Clico’s attorney Roysdale Forde had made an immediate application for a stay of the proceedings on Wednesday afternoon shortly after he received notice of the pending decision and was successful.
And in another twist, Clico filed a motion yesterday calling on Justice Chang to recuse himself from sitting in the case citing what it called his predisposition against the company. Clico also claimed that the Chief Justice abdicated his duties in the hearing by failing to convene a sitting of the Full Court to hear a previous application it had made for a stay of the proceedings.
Chase again referred to the steps taken by Clico as delay tactics, but he was subsequently informed by Justice Chang that the ruling could not be handed down “at this time”.
Justice Chang took to the bench three hours after the scheduled time for his ruling to say he had no choice but to hold his hand. He said his decision was ready to be handed down, and he hoped it would be at the earliest opportunity.
The Chief Justice could not proceed as planned with his ruling because of Justice Holder’s interim order. Justice Chang told the court that Justice Holder has to be given time to make a decision on the application before him, adding, “I am going to give him that time.”
In the ex-parte application to Justice Holder, Clico said its constitutional rights had been breached because Justice Chang failed to grant it a fair hearing. Clico argued that both the application for winding-up and the order placing Clico under judicial management were made without notice to the company.
Clico is arguing that the matter before Justice Chang has not yet been heard and determined and that the proceedings are ongoing. This, the company said, means the Chief Justice cannot proceed with a ruling when matters are still before him. “…that should the proceedings continue and the matter be heard and determined against the Plantiff, the Plantiff would suffer substantial harm, hardship and prejudice by an Order of winding-up,” Clico said in its court documents.
The company said also that it fears an order for winding-up will result in the likely disposal of its assets. Further, Clico said that it has no remedy and cannot be compensated in damages against the judicial manager given that the office carries with it immunity from any action.
In February this year Clico’s Judicial Manager Maria van Beek had secured an order from the court to place Clico (Guyana) under judicial management prior to the possible winding up of the company. Chief Justice Chang ordered, after reading the petition by van Beek and the affidavit in support, that leave be granted to van Beek to present a petition under Section 67 (1) of the Insurance Act 1998 and that upon the filing of the petition that Clico Life and General Insurance Company (South America) Limited be placed immediately under judicial management until further orders by the court.
Van Beek was later shot and wounded by an unknown assailant and has since left the country. Government has passed legislation in Parliament which has paved the way for the Bank of Guyana (BoG) to take over the functions of the Commissioner of Insurance, van Beek’s former post.
The Government of Guyana had assured all policyholders and investors in Clico (Guyana) that they would not lose any money as a result of the difficulties that the company and its Trinidad parent company CL Financial experienced. Clico (Guyana) collapsed after its Bahamian sister company was liquidated. A large proportion of Clico (Guyana)’s assets were held by the Bahamaian company.
The government has been hoping for a wind up of the case here so that Clico’s assets could be sold to meet some of the liabilities to customers and while it covers the deficit. Hundreds of Clico (Guyana) clients have been inconvenienced by the collapse of the company.
