Headlines:
| Long awaited NTCS/Gov’t ruling expected Friday |
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| Friday, 09 May 2008 | |
The Appeal
Court is to hand down its judgement Friday morning
in the 10 year legal battle between the Ezroy Millwood-led National Transport
Co-operative Society (NTCS) and the State.The Government could be ordered to pay billions of dollars if the Court rules in favour of the NTCS. The NTSC filed an appeal two years ago against a November 2004 Supreme Court ruling that set aside a $4.5-billion award by an arbitration panel. The panel consisting of Retired Appeal Court Judge Boyd Carey, former president of the Court of Appeal Ira Rowe, and Queen's Counsel Angella Hudson-Phillips, ruled that the Government had breached a 10-year agreement with the NTCS. That agreement made the Co-operative the official transport service provider for the Metropolitan Transport Region. However, the Government launched the Jamaica Urban Transit Company (JUTC) in 2001. The then People's National Party administration had offered a $172 million buy-out package to the NTCS. The offer was rejected and in August 2000, lawyers for the NTCS filed a suit against the Government in the Supreme Court seeking $3.7 billion in losses. In March 2001, both parties agreed that the issue should go to arbitration. The three-member arbitration panel awarded the NTCS billions of dollars in principal, interest and lost earnings. Supreme Court overturns ruling The Government at the time challenged the award in court and after more than five months of considering the arguments, Supreme Court Judge Justice Patrick Brooks in 2006 sided with lawyers representing the Government and overturned the award. In his ruling, Justice Brooks said he agreed that the franchise agreement between the Government and the NTCS was invalid and the arbitrators erred in finding otherwise. Justice Brooks also said the arbitrators were wrong in their view that a 1996 Heads of Agreement between the Government and the NTCS did not vary or amend the 1995 Franchise Agreement. According to Justice Brooks the arbitrators also erred when they dismissed the Government's argument that the franchise agreement with the NTCS was invalid. The most damaging aspect of the ruling from the Supreme Court judge was that the NTCS failed to take reasonable steps to mitigate its losses. Decade long battle 
Mr. Millwood said he is eagerly awaiting Friday morning's
court ruling.Speaking with RJR News Thursday night, the NTCS President lamented that his company had to endure a decade-long legal battle. "Judgment delayed is judgment denied ... when as business people we have been waiting 10 years for a judgment, it is quite a long and difficult road and we look forward to things coming to a close as quickly as is possible." Mr. Millwood said he will be in court when the ruling is handed down. |