CWC pushing for full settlement of fees from Digicel
Published:Sunday | May 9, 2010 | 12:00 AM
Cable and Wireless Communications Plc (CWC) is going after full settlement of legal fees, "which could run to US$24 million", spent over three years fighting the lawsuit brought against its Caribbean subsidiaries by Digicel Group.
LIME Caribbean, the corporate parent for CWC's 13 regional country operations, on Friday said reports that Digicel would seek a negotiated settlement was not surprising, given that its rival, too, would have incurred huge costs to bring the lawsuit.
"Any negotiated settlement with Digicel can only be in the context of our company being fully compensated and reimbursed for the enormous expense ... ," said LIME Caribbean executive vice-president for legal and regulatory affairs, Donald Austin, in a company-issued statement.
Austin's tough words, notwithstanding, the company said that its final position was still being thought through.
"We estimate that they have spent about £10 million in legal costs already, so it doesn't surprise us that they want to negotiate," he said.
"We are considering our position, but as we have been awarded costs by the court, we are very well positioned."
The suit had accused Cable and Wireless Plc and four subsidiaries, as well as TSTT - in which CWC has a minor interest - of deliberately trying to block Digicel's market entry to five markets during 2002 and 2006.
Digicel made a plea for US$102 million in compensation against all six defendants.
The London High Court threw out the lawsuit in April, saying much of the evidence was weak and overstated, but did find at least two instances where Digicel was discriminated against, by TSTT in Trinidad and Tobago, and in the Turks and Caicos market.
Digicel has said it will be pursuing action against TSTT on its home ground in Trinidad through regulatory channels.
The company also has not ruled out an appeal against the fees it was ordered to pay by Justice Morgan.