Clico policyholders may sue PM—Ramesh

Senior Counsel Ramesh Lawrence Maharaj says the United Policyholders Group will consider suing Prime Minister Kamla Persad-Bissessar and members of Cabinet if they fail to withdraw the June 30 deadline for acceptance of Government’s Clico bailout plan. Maharaj, who represents the group, made the statement in a press release yesterday.

He said if it was not withdrawn, his clients would consider making a claim against the ministers for punitive damages for misfeasance in public office. Maharaj added: “Consideration would be given to seek an order of the High Court to rule that the June 30 deadline does not apply to the relevant Executive Flexible Premium Annuity (EFPA) policyholders and in particular on whose behalf the judicial review claim has been filed.”

On April 19, Justice Joan Charles, who is presiding over the policyholders’ case, granted them leave to apply for judicial review against Persad-Bissessar and members of the Cabinet. In their application, the group’s attorneys contend that promises made by the previous administration in 2009 amounted to a guarantee that policyholders would be paid sums which were held in the cash-strapped conglomerate.

The policyholders claim the current plan is irrational and unreasonable and the Government’s actions were illegal and a violation of their legitimate expectations. The substantive matter will be litigated before Charles on November 21 and 22. Maharaj, in his four-page release, cited Justice Charles’ order as one reason for abandoning the June 30 deadline.

He said it was the Government’s duty to allow policyholders to litigate their rights in the courts without feeling threatened to take up the offer by the deadline. “If the deadline is not withdrawn, policyholders would believe Government is practising a form of blackmail against them to force them to abandon their legal rights and take up the offer,” Maharaj said.

As part of the lawsuit before the courts, the group sought documents, including a valuation of Clico’s assets, assets in Clico’s Statutory Fund and the money received from the sale of Clico’s assets. The group is expected to receive these documents before the next hearing of the case in November.