Court reimposes freeze on Howell, Mitchell
Published:Friday | January 14, 2011 | 12:00 AM
Jamaica's Supreme Court has reimposed limits on Delroy Howell and four of his companies, as well as business partner Kenarthur Mitchell, restraining their transfer or disposal of assets valued up to US$3.4 million that form part of a contested lawsuit over the handling of trust funds while in the care of the First Financial group of companies.
The order was made after hearings lasting 10 days.
The parties have appealed.
The most recent injunction replaces an order last issued October 26 and extended to November 2 that restrained only First Financial Caribbean Jamaica Limited (FFCJL) and First Financial Caribbean Limited.
Justice Hillary Phillips also decided that the October 15 injunction order made by her colleague Justice Patrick Brooks against those same two companies freezing assets of US$1.7 million, would stand.
The monies represent an "admitted debt" to claimant First Financial Caribbean Trust Company Limited by FFCJL, her ruling said.
On Friday, January 7, Justice Phillips reimposed restrictions on the two companies as well as Howell, Mitchell, First Financial International Group Limited and First Financial Caribbean Holdings Limited.
The claimant in the case is trust company First Financial Caribbean Trust Company Limited, represented by Michael Hylton, QC.
On Wednesday, lawyers for the defendants asked Justice Phillips to vary her freezing order to exclude Howell and others, but Justice Phillips denied the request.
The defendants' legal team immediately filed an appeal Thursday morning against Phillips' ruling, attorney Conrad George told the Financial Gleaner. A hearing date is to be set.
George also said that all six defendants would be joining in 'a consolidated appeal' "in respect of the decision of Justice Brooks regarding the US$1.7 million order" as well as "his refusal to discharge a mareva injunction" against the defendants.
George said the consolidated appeal, as well as another filed by Hylton on behalf of the trust company, would be heard in early March.
Hylton said his appeal was against the decision that had reduced the frozen assets from the original US$13.9 million. He wants the higher limit reimposed, he said.
Howell and Mitchell will be allowed living expenses of up to US$1,000 per week each, but the source of the funds must be disclosed to the claimant's attorneys; similarly, the source of funding for theirs and the First Financial companies' legal costs must be disclosed in writing to the lawyers.
The current US$3.4 million freeze, according to George, affects the proceeds of a transaction between First Financial and JN Money Services regarding the sale of Howell's QuikCash business in Cayman.
Howell, who owns the hotel property currently operated under the Wyndham brand in New Kingston, has said previously that the case does not affect that asset.
The first injunction had frozen assets of close to US$14 million, but the defendants' attorneys wrestled the figure down to around a quarter of the original sum in several court appearances since August 2010.
The defendants deny any wrongdoing, and is fighting a related court case in the Turks and Caicos Islands over control of First Financial Trust, with director of the trust company Judith Wilchombe.
The contested US$3.4 million, "the substantial portion of which sums have been paid to Hart Muirhead and Fatta, attorneys-at-law" is to be held in an interest-bearing fixed-deposit account until an appeal is heard or the judge issues a new order, Phillips wrote.
Muirhead Fatta is adviser to the defendants' legal team.