MILLWOOD
THE COURT of Appeal on Thursday reserved its decision in the appeal brought by the Ezroy Millwood-led National Transport Co-operative Society (NTCS), which is seeking to get an order restoring a multibillion-dollar award against the Government.
In 2004, the Judicial Review Court set aside the arbitration award of $4.5 billion. The award, with interest, amounted to $8 billion.
The NTCS sued the Government to recover damages for losses after the Government took control of the public transportation system in the Kingston Metropolitan Transport Region five years before the 10-year contract it had established with three franchise holders had expired.
ARBITRATION
Both the Government and the NTCS agreed to an arbitration and, in October 2003, the arbitrators ruled that the Govern-ment had breached the contract and should pay the NTCS $4.5 billion for the years 1995 to 2001 with interest.
The interest was to be calculated from the end of each accounting year at the treasury bill and commercial bank rates.
In June 2004, however, Mr. Justice Patrick Brooks overturned the arbitration award and ordered the NTCS to pay the Government's legal costs in the Supreme Court, as well as for the arbitration proceedings.
The judge, in handing down his decision in favour of the Government, contended that the arbitrators had erred in holding that the 1996 heads of agreement did not vary or amend the 1995 franchise agreement.
Furthermore, Justice Brooks said the arbitrators erred again when they dismissed the preliminary application, by the Govern-ment, that the 1995 franchise agreement be declared invalid.
Lord Anthony Gifford, Q.C., and attorney-at-law Patrick Bailey, who are representing the NTCS, argued before the Court of Appeal comprising Mr. Justice Seymour Panton, Mr. Justice Karl Harrison and Mrs. Justice Hazel Harris that the judge erred in his ruling.
Richard Mahfood, Q.C., and Solicitor-General Michael Hylton, Q.C., have argued that the judge was correct in his decision.
