KINGSTOWN, St. Vincent, CMC – The British American Insurance Co. Ltd and Colonial Life Insurance Co. Ltd. Policy Holders Group (BACOL) has thanked policyholders for “their patience and their support ”as it disagreed with the ruling by the Caribbean Court of Justice (CCJ) to dismiss its lawsuit brought against the Trinidad and Tobago government.
“We deeply, but respectfully, disagree with the result,” said BACOL in a statement signed by the chairman of its board of directors, Dr. Patrick Antoine.
“While the judgment represents a significant setback, we shall not relent in the quest for economic justice for BAICO and CLICO policyholders. In the coming weeks and months, the judgment will be subjected to keen analysis to assess whether it leaves any further avenue open for judicial redress.,” he added.
On Tuesday, the Trinidad-based Caribbean CCJ dismissed the lawsuit brought against the Trinidad and Tobago government over the 2009 collapse of the British American Insurance Co. Ltd and Colonial Life Insurance Co. Ltd insurance giants.
“The claim is dismissed, and the parties were ordered to bear their costs,” CCJ President Justice Adrian Saunders said in the judgment summary.
BACOL brought the lawsuit, claiming that after 15 years of perseverance, it has “significantly advanced the pursuit of financial justice” for policyholders in Antigua and Barbuda, Dominica, Grenada, Montserrat, St. Kitts and Nevis, St. Lucia, and St. Vincent and the Grenadines who have “suffered extreme financial loss and hardship” after the collapse of the British American Insurance Co. Ltd. (BAICO).
BACOL said the collapse resulted in losses of over EC$800,000,000 (One EC dollar=US$0.37 cents) to businesses and individuals.
In April, the matter of Ellis Richards and others versus Trinidad and Tobago was heard by the CCJ, with the lawyers for the policyholders arguing that the Trinidad and Tobago government breached the Revised Treaty of Chaguaramas (RTC), which established the Caribbean Single Market and Economy (CSME), by bailing out certain local CL Financial (CLF) subsidiaries such as CLICO and British American Trinidad (BAT) and not regional subsidiaries such as BAICO.
The lawyers, including former St. Lucia prime minister Dr. Kenny Anthony, said that while local policyholders were protected and essentially guaranteed their full investments, Eastern Caribbean policyholders were only able to recoup approximately 14 percentpercent of their assets through the liquidation of the regional subsidiary.
“It is with profound disappointment that we inform the policyholders of British American Insurance Company (BAICO), who lost hundreds of millions of dollars when the CL Financial Group (CLF) collapsed, that the Caribbean Court of Justice (CCJ) has dismissed the claims brought on their behalf against Trinidad & Tobago,” Antoine wrote in the statement.
He said these claims were based on the premise that the BAICO policyholders were similarly circumstanced and thus should have been treated in like manner to Trinbagonian policyholders of the Trinidadian company, British American Insurance Company (Trinidad) Limited (BAT), who were compensated for their loss by Port of Spain.
“The CCJ’s Judgment highlights the failure of CARICOM (Caribbean Community)to put in place a framework to protect and provide equal treatment for all consumers across the Common Market,” Antoine said.
He said that the CCJ, which serves as an international tribunal interpreting the Revised Treaty of Chaguaramas (RTC) that governs the regional integration grouping, had observed that despite the provision contained in the RTC) for member states to promote the interests of consumers in the Community by appropriate measures, “no specific measures existed which were enforceable against Trinidad and Tobago.
“Consequently, the Court ruled that, although it was “sensitive to the tremendous losses sustained by the [BAICO Policyholders] and all those who were affected by the CLF implosion,” there was no legal basis presently under the RTC that provides for redress for the massive losses,” Antoine said.
He said regrettably, the Trinidad and Tobago government could rely on an exception to rights contained in the RTC and thereby restrict its implementation of a rescue plan for CLF and consequent compensation to Trinbagonians only.
“This is against the background of the Court having determined that the collapse of CLF, which was based on and operated out of Trinidad & Tobago, stemmed from significant regulatory deficiencies.”
Antoine said that he wanted to thank “policyholders for their patience and their support of our pursuit of this matter, as well as the team of lawyers, including the late Gerald Thompson and . Karl Markham, “both of whom were called home to glory, during this quest for ‘economic justice’ for BAICO and CLICO Policyholders.
“We extend our gratitude to all others who provided support and assistance in this struggle, which has been ongoing for the past 15 years,” Antoine added.
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