Sports Company Lifesport lawsuit to start in 2024

A HIGH COURT judge has granted an extended adjournment to September 2024 for the start of a lawsuit against the former Sports Company of TT Ltd (SporTT) CEO and 13 former board members arising from the failed LifeSport programme.

The trial was expected to begin on Tuesday, at the Waterfront Judicial Centre (WJC), Port of Spain, before Justice Ricky Rahim.

However, on the eve of its start, he granted the adjournment after SporTT’s attorneys filed an application for a stay or adjournment of the trial, pending their appeal of his ruling last Wednesday, when he struck out the claim of negligence against the 14.

He struck out the claim because it could not be sustained because of “the absence of proof of actual loss or damage,” which he said was an element of the tort of negligence.

He also struck out a claim for equitable compensation of $34 million, which SporTT was seeking, in relation to a contract signed by the former board in June 2013.

The trial on Tuesday was expected to proceed on SporTT’s claim of breach of fiduciary duty under section 99 of the Companies Act.

Named as defendants in claim are former directors Sebastian Paddington, Chlea Lamsee-Ebanks, Reynold Bala, Morris Blanc, Nisa Dass, Anly Gopeesingh, Sabrenah Khayyam, Cheemattee Martin, Matthew Quamina, Annan Ramnansingh, Kent Samlal, Harnarine Seeram Singh, Milton Siboo and former CEO John Mollenthiel.

The company’s procedural appeal was filed last Wednesday, immediately after Rahim delivered his ruling. In it, they are asking for the negligence claim and the relief for the repayment of the $34 million to be reinstated. They also say the judge was wrong in striking out the negligence aspect of the claim and erred in law. The notice of appeal sets out the various reasons why, they say, the judge was wrong in his ruling.

Attorneys for the 14 did not object to the application for the adjournment. In setting new trial dates, Rahim said his open dates were in September 2024, since from now until then, he was booked with trials, and was not prepared to move anyone else’s matter unless he is instructed to do so by the Court of Appeal.

“Other litigants are entitled to have their day in court, but if the Court of Appeal instructs me, I will abide by that order.”

New trial dates were set from September 10-October 1, 2024, to be heard at the WJC. It is also likely some of the 14 will also lodge a procedural appeal challenging the judge’s refusal to strike out the entire claim.

Rahim also said he will not rule on evidential objects, for now, until the Appeal Court rules, since if he did so, it would be based on one category of pleadings for breach of fiduciary duty when the SporTT’s case dealt with that and negligence.

Leading the case for the Sports Company are Colin Kangaloo, John Lee and Stephanie Moe. The former CEO and the 13 former directors are represented by teams of attorneys who include King’s Counsel Anand Beharrylal, Neal Bisnath, Dharmendra Punwasee and Rishi Dass.