Tomlinson sues former UGI liquidator
Published:Friday | March 9, 2012 | 12:00 AM
Sabrina Gordon, Business Reporter
Ken Tomlinson, liquidator for the Neville Blythe- owned subsidiary UGI Finance and Investment Limited, has filed a lawsuit against Dalma James for failing to hand over documents which he said have stalled efforts to wind up the company since last August.
James is the former liquidator of UGI. He was replaced by Tomlinson after 18 months.
According to the information set out in the particulars of the claim filed with the Supreme Court, James is demanding payment of fees totalling approximately J$30.4 million "to proceed with the handing over".
In the invoice provided by James, the final bill for liquidation services for the period amounted to J$39 million. Of that amount, it stated that J$13 million has been paid.
More than $25m difference
The difference of more than $25 million, along with the addition of tax at a rate of 17.5 per cent brought the outstanding balance to J$30 million, which James now said must be paid before the documents are handed over.
James, a chartered accountant, served as liquidator for UGI Finance and Investment from January 2010 to August 2011.
In 2009, after 13 years in operation, UGI Finance and Investment opted for voluntary liquidation, saying it was running short of cash.
The decision came shortly after the Financial Services Commission served notice of its intention to suspend the company's securities dealer's licence.
UGI Finance and Investment has been a securities dealer since 1995. Its book assets were valued at J$900 million at the time it was placed in liquidation.
It was not clear why James was removed as liquidator, but the resolution was passed at a creditors' meeting on August 3, 2011.
Tomlinson was then appointed.
James said he would not discuss the matter when contacted.
"I cannot comment on it," he said.
The particulars of the claim filed by Tomlinson states that on October 3, 2011 Greg Dennis, the agent appointed by Tomlinson, went to retrieve the UGI files but James refused to hand them over, Dennis was asked to return the following morning, but was subsequently told by James that he would not return the files until his fees were paid, the legal documents allege.
The following morning, Dennis attempted to collect the files but was unsuccessful.
As a result, Tomlinson claims that James wrongfully detained the files and so is preventing him from fully carrying out his duties under the Companies Act.
The date for the hearing of the case is still to be set.