Taxpayers could be called upon to pay a bill of over $25 million for legal costs racked up by the former PNP administration as it fought a lawful landowner for his property at Coopers Pen in Trelawny.
The PNP administration of 2012 to 2016 engaged in successive court battles in an ultimately failed attempt to have the lawful landowner relinquish control of his property and give ownership to members of a squatter community.
The legal costs accrued after then Housing Minister, Dr. Morais Guy, lost the case at both the Supreme Court and Court of Appeal.
At both courts, costs were awarded to the owners of the property, New Falmouth Resorts Limited.
The costs have yet to be paid.
Nationwide News understands the amount owing to New Falmouth Resorts could be used to offset their debt to Tax Administration Jamaica.
We have more in this report from George Davis.
In 2013, the application by the Minister of Housing under a PNP administration to strike out the claim by the lawful owners of the Coopers Pen land, who were seeking to take control of their land, was heard by Justice Lennox Campbell.
On February 12, 2014, Justice Campbell dismissed the then government’s claim.
Legal costs were awarded to New Falmouth Resorts Limited.
New Falmouth subsequently obtained a Default Cost Certificate dated January 26, 2015, in the sum of $14,627,812.
The then Minister of Housing proceeded to appeal the decision of Justice Campbell.
Notice and Grounds of Appeal were filed on March 27, 2014.
The appeal was heard.
It was dismissed on April 29, 2016, with costs again awarded to New Falmouth Resorts Limited.
Costs were taxed on June 11, 2020, taking the sum to be paid by the then government for its defeat at the Court of Appeal to $10,859,000.
Taken together, the combined bill for costs to New Falmouth Resorts Limited, related to the two court cases it won against the then PNP administration was $25,486,812.
Nationwide News understands the Commissioner-General at Tax Administration Jamaica is seeking to have the Government pay over that sum directly to the TAJ.
It’s understood that this will be used to offset the $26 million tax bill racked up by New Falmouth Resorts in the time it was in court fighting the then government for control of its own land.
But there may be a snag.
We’ve been told the Attorney General’s Department is moving to refer the matter to the Supreme Court for a declaration over whether it’s indeed authorised to pay the debt for legal costs to the Commissioner of Taxes or whether it should instead pay the amount directly to New Falmouth Resorts Limited.
The bill for legal costs to New Falmouth Resorts came at the end of court proceedings in which the court described the actions of the then government as insincere, iniquitous, an abuse of process and an attempt to pervert the course of justice.
The court also found that the squatters were encouraged by politicians to unlawfully occupy the property.
The court noted that the then PNP administration and public officials had persecuted the owner of New Falmouth Resort Limited because he is not a traditional landowner.
The court delivered another cutting remark, noting that the approach of the then government required an emancipation of enslaved minds.
