Kamla takes State to task for $38M compensation for construction company

Opposition leader Kamla Persad-Bissessar plans to seek Parliament's approval Friday to debate what she calls "gross negligence" by state authorities by their "failure to comply with elementary rules of court" involving Universal Projects Limited, which has led to the award of $38 million against the state.

In a media release, she said the financial burden on the Trinidad and Tobago taxpayers is due to "the utter inefficiency of the government".

The matter relates to a decision in October, 2007 to prematurely end Universal Project Ltd’s contract to expand the Churchill Roosevelt. The company disputed the termination and claimed more than $31 million in compensation.

Universal's lawyers made requests for the compensation in letters to Works Minister Colm Imbert, his permanent secretary and the attorney general but got no response.

In an affidavit, attorney for the State Deborah Jean-Baptiste-Samuel claimed that "inexperienced legal staff" handled the matter and stored the papers in "a vacant office". She said the paperwork was found after the deadline date for response.

The State later got a new deadline to file a defence but missed that as well. A court subsequently granted Universal Projects Ltd almost $32 million, along with 12 per cent interest, starting from October 2008.

The State took the matter to the appeal court, which ruled in favour of the firm.

Appeal Court Judge Peter Jamadar condemned The Ministry of Works and Transport, Solicitor General’s Department and attorneys for the State for their lax response to Universal Projects Limited's lawsuit.

The judge noted that the State "found itself in this position because of a multitude of defaults, omissions and choices made on its behalf."

He added, "The circumstances of this case illustrate exactly the kind of ’laissez-faire’ approach to civil litigation that undermines the good administration of justice and that can no longer be accepted."

In addition to the $38 million, the State will also have to pay the legal costs incurred by Universal Projects Ltd for the appeal. The amount of that compensation has not yet been worked out.