Following more than a year of legal wrangling, the bankruptcy judgement slapped on Holy Cross MP, Sidney Stubbs last March was ordered annulled in court on Tuesday evening by Chief Justice Sir Burton Hall. With the annulment, he will no longer be considered a bankrupt, The Guardian was told.
Following the ruling, Mr Stubbs’ attorney, Thomas A. Evans, told the press that as soon as officers from Imperial Life (now Colina Insurance) sign the deed of compromise, Mr Stubbs’ bankruptcy order would be annulled.
In a former meeting with Mr Stubbs on April 6, the Registrar, Estelle Grey-Evans, who also acted as the Trustee in Bankruptcy, determined that the only parties with rightful claims against Mr Stubbs were Imperial Life Assurance Company and businessman Felix “Mailman” Bowe. At the time, both Imperial Life and Mr Bowe agreed that they were satisfied with the process by which Mr Stubbs would meet the debts owed to them, and there was no reason to keep the Holy Cross MP in a state of bankruptcy.
Although Mr Stubbs’ bankruptcy judgement has been ordered annulled, he will still have to pay $30,000 in legal fees to Attorney Wayne Munroe. Mr Munroe represented applicant Gina Gonzales who commenced bankruptcy proceedings against Mr Stubbs last March to collect $55,0000 advanced to him on Sept. 15, 1995. However, Ms Gonzales has since been repaid, but Mr Munroe still appeared in court on Tuesday and fiercely objected to the arguments put forth by Stubbs’ lead Attorney, Thomas Evans.
The annulment in the “landmark case,” will also pave the way for Mr Stubbs to return to the House of Assembly when sessions resume on May 4, if he wishes. However, his bankruptcy case will still be heard before the Privy Council on May 3. During this time, the Privy Council will determine whether or not the Court of Appeal had jurisdiction to entertain the bankruptcy appeal of the Holy Cross MP. Mr Stubbs will be represented at the Privy Council by Attorney, Philip “Brave” Davis
During the hearing, Mr Evans continuously pointed out that his client had appeared before the court on numerous occasions, and submitted that an annulment should be granted. However, a drawn out back-and-forth discussion ensued with Attorney Wayne Munroe, about what constituted an “annulled” order of bankruptcy as distinguished from a person being “discharged” from bankruptcy.
The Guardian was told by Attorney Keod Smith that in oder to be discharged, the person declared bankrupt admits that he/she is a bankrupt and accepts this fact. He or she will go through the process of paying up to a certain acceptable percentage of what is outstanding against his/her estate, and then he is considered to be discharged. When a matter is annulled, he said a person is not simply considered to be discharged, but the entire stigma of being declared a bankrupt is removed.
Attorney Wayne Munroe also argued that he objected to an annulment because Mr Stubbs’ case would be appealed at the Privy Council level. However, Chief Justice Hall said he could not bring a measure of “understanding” to Mr Munroe’s argument, and after examining the report of the Trustee in Bankruptcy, he eventually ruled that the order be annulled.
Attorney Keod Smith outlined that whenever the House of Assembly reconvenes, if Mr Stubbs determines that he wants to return to Parliament, there is nothing that can prohibit him from doing so. He outlined that Article 49 sub-section four of the Constitution allows Mr Stubbs to go back to Parliament if he is no longer a bankrupt while an appeal is open to him.
“There is no question that there is an appeal open to him. In fact, an appeal is scheduled to be heard before the Privy Council on May 3 and there is nothing that prohibits him from going forward, nor is there any problem with the Privy Council adjudicating on the appeal,” he said.
Meanwhile, Mr Munroe said he is giving Mr Stubbs a period of 21 days to pay the $30,000, as it was the period outlined in application for receivership. He had initially requested $50,000 in court, but Stubbs’ lawyer said this amount was too hefty.
By TAMARA McKENZIE, Nassau Guardian Staff Reporter
