A Supreme Court justice will have to decide whether Grand Bahama Port Authority owners the late Edward St. George and Sir Jack Hayward “unlawfully” caused assets of Mr. St. George’s daughter, Caroline, to come under the control of the company which manages Freeport, or affiliate companies.
Ms. St. Georgeﾒs attorneys on Tuesday filed a second writ making the claim a day after another lawsuit was made public.
She alleges that in October 1999, Mr. St. George and Sir Jack “unlawfully” caused the entirety of the issued share capital of Leedej Limited, which is owned by Ms. St. George, to be purportedly transferred to the Grand Bahama Development Company without paying any consideration to her.
On Monday, the attorneys filed a writ in the Supreme Court Registry in Freeport alleging that on October 19, 2000, Mr. St. George and Sir Jack “unlawfully caused the entirety of the issued share capital of Carrick Limited”, to be transferred to the Port Group Limited.
Ms. St. George, according to the lawsuit, was a 50 percent owner of the Bahamas-incorporated company, Carrick Limited, but the sole owner of Leedej Limited.
Both companies own land in The Bahamas.
The lawsuits say Mr. St. George was his daughterﾒs attorney-at-law when he approved the transactions.
As they claimed in the earlier writ, Ms. St. Georgeﾒs attorneys said in the writ filed Tuesday that the transfer of the shares of Leedej took place without her knowledge, and was effected to her detriment and disadvantage, but to the benefit and advantage of her attorney, agent and father the late Edward St. George.
It further alleges that the transfer of Ms. St. Georgeﾒs shares was effected in breach of the fiduciary duties Mr. St. George owed his daughter.
Again, the lawsuit said the transfer of the shares was effected by “undue influence”.
In both lawsuits, Ms. St. George, a resident of Freeport, is seeking an account and enquiry of her assets allegedly being held by the Port companies.
She is seeking to receive monies she believes would be due to her following such a probe, and also wants equitable interest and interest pursuant to the Civil Procedure (Award of Interest) Act, 1992.
Along those lines, Ms. St. George is asking the court for a declaration that the Grand Bahama Development Company holds 100 percent of the issued share capital of Leedej Limited.
As an alternative, she is asking the court to order the Grand Bahama Development Company to return to Leedej Limited properties that have been conveyed to it since October 1999.
The Grand Bahama Development Group and Port Group Limited have two weeks to answer the writs filed.
If they refuse to do so, judgments may be delivered in their absence.
Last night, the Port Authority issued a brief press statement confirming that it has been served with two writs, which were filed by Ms. St. George in respect of affiliated companies which were wholly or partially controlled by her father.
“The claims are essentially in the nature of claims by Caroline St. George against the estate of her late father Edward St. George who was a 50 percent shareholder of The Bahama Port Authority,” the press release said.
“These claims do not affect the day-to-day operations of The Grand Bahama Port Authority. The Port Authority has referred the mattes to its attorneys and has instructed them to respond accordingly.”
Many Grand Bahamians and other observers continue to watch with interest developments relating to the Grand Bahama Port Authority and its group of companies.
Some licensees have expressed concerns that the Portﾒs financial strength may be under threat from such lawsuits, including a claim being made by Mr. St. Georgeﾒs ex-wife, Mary St. George, who says sheﾒs a 25 percent shareholder of the company.
Since earlier this year, the Grand Bahama Port Authority has been embroiled in controversy. Apart from the lawsuits, several senior Bahamian executives have parted ways with the company, including Julian Francis, the former Central Bank governor, who served as Port CEO and Co-chairman for exactly a year.
His resignation in June paved the way for the appointment of Hannes Babak, an Austrian with business interests in Grand Bahama, as chairman of the Port.
As it faces the lawsuits from Caroline St. George, the Port Authority is also facing legal pressures from former deputy chairman, Willie Moss, whose position was made redundant over the summer.
Her case against the Port Authority is expected to be heard before the Industrial Tribunal, as reported by The Bahama Journal last week.
The Journal reported two weeks ago that Ms. St. George had complained to Freeport police that Sir Jack, the partner of her late father, had threatened her, but itﾒs not clear whether police made any progress in investigating that claim.
By: Candia Dames, The Bahama Journal
