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The Endless Saga: Ashcroft Alliance Vs. GOB In Court
posted (October 22, 2014)

4 weeks ago, we told you how the Ashcroft Allied Belize International Services Limited won the first court battle against the Government of Belize. They were able to convince Justice Shona Griffith that the Commissioner of Income Tax arbitrarily assessed BISL for 30 million dollars in back taxes that they didn't owe. Justice Shona Griffith agreed and struck down that assessment.

Well, today, the Government of Belize went on a pre-emptive strike to get BSIL's full claim thrown out. The real fight, which is pending, is whether or not Government acted lawfully when they assumed control of the registries.

That case is before Justice Michelle Arana, and a preliminary hearing came up because Government attorney Denys Barrow wants it struck out.

As we've told you, BISL is claiming 60 million US dollars as an award of damages because according to them if the court rules that the government acquisition is unlawful – that's what they are entitled to. The company's position is that they had a registry management services agreement which gave them control over the registries up until 2020, but the Government broke that contract and violated their constitutional rights.

Government, on the other hand, says that the agreement for the registries expired last year, and that gave it all rights to terminate BISL's management.

Today's hearing was based mostly in legal technicalities, but nevertheless, Barrow pressed forward on his application. After the hearing, both sides explained the importance of their arguments, given that 60 million US dollars is on the line:

Denys Barrow, Attorney for GOB

"We maintained that the claim they brought should have been a claim for damages, for breech of contract and should not have been brought as a claim for violation of the constitution. And it is on that basis we sat with the court, it is an abuse of the process. Force them to come the proper way and tell them they can't come with a false constitutional law claim."

Eamon Courtenay, Attorney for BISL

"Essentially what has happened is, you will recall the government took over forcefully the registry for the international business company, which was managed by our clients Belize International Services Limited. They claimant has brought this claim saying that the constitutional right of their property has been breeched. That the government used for and took over the registry and took away the balance of the management contract, there was 7 more years, so we have brought that claim for substantial damages. The government says it's not a breech of the constitutional right, that it is a breech of a contractual right and therefore the procedure we adopted is wrong. In response to the arguments made by my friend, Barrow senior council, we contended very forcefully that in fact, the government did breech our client's constitutional rights and we are entitled to continue by way of a constitutional motions to seek damages and appropriate relief. We also point out to the court that if she finds that this is a case that ought to continue as an ordinary claim for breech of damages. That is available and rules provide for that and she should reject the submission of the government and the claim should be struct out."

Reporter

"How is the 60 million dollar figure arrived at?"

Eamon Courtenay

"Well we have experts who have looked at the performance of the registry, the income of the registry, the revenue of the registry, with expenses of both registries and the projection for what was likely to be earned for the balance of the term. Based on that the experts has advised what they see is the profits that our clients have lost."

Denys Barrow

"That figure in a Belizean context for the people of Belize, to be made or even have a claim against them for 60 million US is a huge cloud to be under. It is something that you do not take lightly, it is something that you fight against."

Daniel Ortiz

"Sir I notice also you make mention that there is no evidence to support this quantum, describe to us why you made that assertion important."

Denys Barrow

"As I mentioned in court, the reference to the 60 million, does not come from anybody saying that this is what we have lost. It comes from somebody saying that we issue a press release in which we told the Belizean people, that is what will catch you."

Daniel Ortiz

"Will your side be presenting this to court as to how you arrived at this figure?"

Eamon Courtenay

"Absolutely. There is very comprehensive and very clear experts reports that have been prepared substantiating the amount that we will claim."

Justice Arana has reserve judgement on this application to be handed down at a later date. It is important to note that if the Government wins, it is not the end of the registries ownership challenge.

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