(Trinidad Guardian) The Government is challenging a lawsuit from a group of regional British American Insurance (BAICO) and Clico policyholders alleging that it (the Government) discriminated against them when it only bailed out the CL Financial (CLF)’s local subsidiaries. Lawyers representing the State indicated their challenge to the group’s lawsuit as the case came up for virtual hearing before the Caribbean Court of Justice (CCJ), yesterday.
In the lawsuit, the group is contending that the Government breached the Revised Treaty of Chaguaramas, which seeks to prevent discrimination of Caricom citizens based on nationality, by bailing out certain local subsidiaries of CL Financial such as Clico and British American (Trinidad) Limited and not regional subsidiaries such as BAICO.
They are claiming that while local policyholders were protected and essentially guaranteed their full investments, they were only able to recoup approximately 14 per cent through the liquidation of the regional subsidiary.
They are also contending that the Government actively harmed BAICO by requiring that the assets of CLF, which is currently in liquidation to clear the remaining debt to the Government from the 2009 bailout, were used to help only local subsidiaries.
During the hearing before CCJ President Adrian Saunders and Judges Jacob Wit and Winston Anderson, Senior Counsel Deborah Peake requested time for her client to put in evidence to buttress its move to challenge the group being granted special leave to pursue the case.
“The case possibly exposes T&T to hundreds of millions of dollars in claims,” Peake said.
The appeal panel gave the parties time to file their evidence and submissions and reserved January 18 for oral submissions.
The group, which filed the lawsuit in the names of Ellis Richards, Spencer Thomas and the Medical Benefit Board, is being represented by a legal team led by Simon Davenport, QC.
