Bahamas News

It’s the latest strand in the growing web of litigation entangling the Grand Bahama Port Authority and its related entities.

While Sir Jack has not appealed the recent ruling of Justice Allen declaring that he is not a 75 percent owner of the Grand Bahama Port Authority and affiliated companies, last month he caused an old writ to be served on Lady Henrietta St. George in London, which points to his alleged controlling interest in the companies.

Lady Henrietta is the widow of Edward St. George, Sir Jack’s longtime business partner. Last year, the longstanding relationship between Sir Jack and the St. Georges imploded after he made his 75 percent ownership claim.

During the recent action heard before Justice Allen, Sir Jack alleged that his shareholding was increased by 25 percent by the transfer by Don De La Rue (a director of the Port’s parent company) in November 2006 of one share in Fiduciary Management Services Limited (FMS).

But Justice Allen rejected that allegation and accepted that Mr. De La Rue did not have the authority to transfer the share.

The writ served on Lady Henrietta last month says Sir Jack is the beneficial owner of the one share in FMS registered in the name of Campbell Securities Limited and seeks a declaration in that regard.

Alternatively, Sir Jack is seeking a declaration as to who is/are the beneficial owner(s) of the said one share.

FMS is a private trust company that was created by Sir Jack, Mr. St. George and Mr. De La Rue to administer the families’ investment.

On Tuesday, Fred Smith, attorney for the St. George Estate, called the Cayman Islands action “perverse”.

“It is perverse because it was initiated after Justice Allen’s judgment declaring 50 percent ownership and in that judgment she also found that Don De La Rue did not have any share to transfer to Sir Jack in Fiduciary Management Services, which is the company that Sir Jack used to gain control of the board of Intercontinental Diversified Corporation, the company that holds the Haywards and St. Georges shares in the Port Group,” Mr. Smith said.

He asserted that Sir Jack is basically saying, “I don’t care if the judge in The Bahamas says you own 50 percent. I still have control of IDC.”

The injunction was obtained by Harvey Tynes, QC, and Damian Gomez on behalf of the estate.

Mr. Smith said, “The estate has been forced to apply and Justice Allen granted an injunction to restrain Sir Jack from continuing to sue the estate in the Cayman Islands. The estate continues to try to force Sir Jack to accept that in accordance with Justice Allen’s judgment that the estate is a 50 percent shareholder. Sir Jack appears to be snubbing his nose at the Bahamian judicial system by pretending as if no judgment has been made against him in the Bahamas.”

He said the estate also wants to put to rest the persistent rumors that it has sold its interest to the Fleming Group.

“The estate has not sold the shares and has not even received an offer,” Mr. Smith told the Bahama Journal.

The parties return to court on October 19. At that time, Justice Allen is expected to decide whether to strike out the estate’s action on Sir Jack’s trust company’s application.

Seashell (the trust company) contends that the estate has no case and the court does not have to decide if there was any oppression against the estate by Sir Jack because Seashell has offered to buy out the estate’s interest in the Port Group of Companies.

However, the St. Georges maintain that in this divorce Sir Jack is the one who needs to leave the matrimonial home, not the estate.

The St. George estate is accusing Sir Jack of “fraudulently” gaining or purporting to gain control of companies, which hold shares in the Grand Bahama Port Authority and Port Group Limited.

The plaintiffs in this particular matter include Lady Henrietta St. George, Mr. St. George’s widow; James Fitzroy, her brother and Christopher Cafferata, an attorney based in Freeport. They are all executors of the estate.

In their statement of claim, the plaintiffs allege that Hannes Babak, chairman of the Port Authority, induced Sir Jack or alternatively assisted him in breaching a partnership agreement entered into by Sir Jack and Mr. St. George in 1982.

The statement of claim says that at all material times, Sir Jack was fully aware of the agreement and Mr. St. George’s entitlement to beneficial ownership of 50 percent of the shares.

When she ruled recently that Sir Jack is a 50 percent owner, Justice Allen said she is convinced that the plan to take over control of the Grand Bahama Port Authority and Port Group Limited was hatched in someone’s fertile imagination in late 2006.

Source: Bahama Journal