... - Privy Council upholds conspiracy ruling against widow, businessman
November 16, 2007
Endorsing a ruling by Jamaican courts, the Privy Council has held that entrepreneur Paul Geddes' widow, Margie, conspired with Caymanian businessman Albun Whittaker to fraudulently frustrate attempts by Geddes' offsprings to get their hands on assets valued at over US$4 million at his death in June 1999.
The November 8 ruling by the UK law lords is not only likely to halt the purported sale of 11 million Desnoes & Geddes (Red Stripe) shares to Bastion Holdings Limited, a company ostensibly owned by Whittaker, but Geddes daughters and their children are also entitled to payouts of over US$4.4, plus interest at 12 per cent a year, dating back to August 1999.
Apparently, too, the Geddes siblings and their offsprings are also entitled to share splits made by Desnoes & Geddes over the past eight years, as well as any dividends on all share issues by the inconic Jamaican firm over the period.
Geddes family members were not immediately available for comment on the court's ruling, but rejecting a claim by Bastion that it had been unfairly treated in the local courts. The U.K. judges said the allegation against Whittaker and Mrs. Geddes was a grave one.
Falsely dated document
"It was an allegation that they had conspired to put forward a falsely dated document in endeavour to frustrate the purpose of the Mareva injunction (prohibiting transfer of assets) that had been granted on 8 November 1999," said the UK panel.
"Mr. Whittaker may have been well advised not to present himself to be cross-examined but, whether that is so or not, his refusal to do so unquestionably made it more difficult for the judge to decide whether or not the allegation was made out. She was obliged to relay on inferences from documents instead of hearing the oral evidence of the parties to the alleged conspiracy.
"In their Lordships' judgment (Justice Marva) McIntosh's decision to decline to hear submissions (from Whittaker's lawyer after Whittaker had been cited for contempt of court) was a decision that, in her discretion, she was entitled to take. Their Lordships agree with the Court of Appeal's rejection of Bastion's appeal on this point."
The Geddes case was classic theatre of family distrust, and of a younger woman who marries an old man, who then dies, triggering a dispute over his fortune.
By the time he married Margie, a Caymanian, in 1991, Geddes was well into his eighties. She was 36. Geddes had two adult daughters, who in turn had their own children.
Paul Geddes was a master blender and scion of the Geddes family who helped found D&G, the company that brewed Red Stripe beer and soft drinks. Desnoes & Geddes was sold to British food and drinks company, Diageo in late 1993 and Paul Geddes was reported to have netted over US$10 million for his personal stake in the company.
But according to court documents, Geddes had a company called Bardi Limited, in which he and Margie held one share each. Bardi held 11 million D&G shares as its primary asset.
Promissory notes
Between June and August 1994 Bardi issued to Geddes the promissory notes, for US$4,474,326, at the 12 per cent interest and payable on demand. Geddes in turn endorsed the notes to Securities Trust and Management Services, which later changed its name to Coverale Trust Services Limited.
"It seems clear, therefore, and the contrary has been suggested, that Mr. Geddes intended his daughters and grandchildren to have the benefit of the assets held by Bardi, subject to any future appreciation in the value of those assets over and above the amount outstanding under the promissory notes," the Privy Council judges said.
"The benefit of any such appreciation would, of course, accrue to Bardi and, thus, to Bardi's shareholders."
When Geddes died in June 1999 his will named Margie, his young wife, the sole beneficiary of his estate. She, therefore, had control of Bardi.
Payout
Two months after Geddes' death, JFI, the trust holding assets for his children and grandchildren, wrote to Bardi demanding a payout of US$7,280,987 under the terms of the promissory notes - that amount representing the principal and accrued interest.
Bardi was given 14 days to pay, a timetable which was not met.
On November 8, 1999 JFI went to court for a writ to have Bardi pay and at the same time gained a Mareva injunction restraining Bardi from disposing or dealing in any of assets, wherever they were held and whatever the kind. ...
Author: Gleaner Reporter
Source: Jamaica Gleaner
