The Caribbean Court of Justice (CCJ) last Monday upheld the local High Court decision in favour of the Guyana Bank of Trade and Industry (GBTI), ruling that Desiree Alleyne, a director of a defaulting company, repay the Bank $10 million with interest.
Alleyne, a sitting Magistrate in Jamaica, was a director of Wilzon Enterprises Inc. which had defaulted in its payments to the Bank on a loan taken out in August 1996. Alleyne, along with the two other directors, were listed as personal guarantors. The director, however, contended that she knew nothing of this guarantee and that she did not sign or initial it.
When the matter was heard in the High Court, Justice BS Roy ruled in favour of the Bank. The matter was then taken to the Court of Appeal, and by majority, it reversed the decision of the High Court and ordered a retrial. When ruling in the case, Justices of Appeal Yonette Cummings-Edwards and James Bovell-Drakes ruled in favour of Alleyne, while acting Chancellor Carl Singh gave a dissenting judgment.
However, GBTI took the matter to the CCJ, which upheld all of the arguments advanced on behalf of the Bank. “All the issues raised on this appeal having been determined in favour of the Bank, the appeal against the order of the Court of Appeal is allowed. The judgement of Roy J is restored and so is his order than the Defendant do pay the Bank the sum of $10 million with interest thereon at the rate of 22.75% per annum from 26 November 2001 until payment, with costs fixed in the sum of $150,000. The Defendant must also pay the Bank’s costs in the Court of Appeal and the costs of this appeal, to be taxed if not agreed,” the CCJ concluded.
The ruling was made by Rt Honourable Mr. Justice Michael de la Bastide and the Honourable Justices Saunders, Bernard, Hayton and Anderson.
Alleyne was represented by attorneys Lyndon Amsterdam and Carlton Amsterdam. The Bank was represented by Nikhil Ramkarran and Kamal Ramkarran, both of the Cameron & Shepherd law firm.
