Versair files appeal in airport-catering case
March 13, 2009
The ongoing legal battle between Versair In-flight Services Ltd and the defendants, Airports Authority of Jamaica & MBJ Airports Limited, relating to Versair's legal rights under a lease to provide catering at the Donald Sangster International Airport, is now headed for the Court of Appeal.
Shortly after Supreme Court Judge Roy Jones handed down a decision last week in favour of the defendants, Versair's lawyers took the matter to the Court of Appeal and got an injunction.
The injunction bars the defendants from concluding concession agreement with another company until Versair's appeal against the Supreme Court ruling has been heard.
Versair, for many years, had a monopoly in relation to the operation of catering and con-cession services at the Norman Manley International and Donald Sangster International airports. They operated concession stands, restaurants and provided catered kitchen services to various airlines.
Versair was taken over by GraceKennedy and a Barbadian company, Goddard Enterprises. They entered into a new lease agreement with the defendants. The lease agreement, dated August 13, 2002, gave Versair the right to provide concession services at both airports.
First-refusal rights
The central issue in dispute between the parties is the interpretation of the lease agreement and, in particular, whether the claimant,Versair, had a right of first refusal under the lease.
Versair contended that MBJ, which manages the airport, breached the lease by awarding a delicatessen concession to another company, without giving them the right of first refusal....
Author: Barbara Gayle
Source: Jamaica Gleaner
