Appeal Court rejects Chinese contractor's plea for Las Alturas repayment plan

THE COURT of Appeal has dismissed an application by Chinese contractor China Jiangsu International Corporation (TT) for a variation of a court order for it to pay $30.1 million to the Housing Development Corporation (HDC) for wasted expenditure on two blocks at the Las Alturas Housing project in Morvant.

On Friday, Justices of Appeal Mira Dean-Armorer, Vasheist Kokaran and Malcolm Holdip dismissed China Jiangsu’s application for a lack of cogent evidence that it ran the risk of financial ruin if forced to pay the judgment debt in full.

In April, Justice David Harris ordered the contractor to compensate the HDC specific sums related to the two apartment blocks, which suffered structural damage and had to be demolished.

China Jiangsu has appealed Harris’s ruling and orders.

In July, the contractor sought a stay of the order and a variation. A conditional stay was granted, with the stipulation that the contractor make a $15 million payment by August 15.

A temporary suspension of the stay was then granted in August, giving the company until September 28 to make the $15 million payment.

Unable to pay, China Jiangsu again sought the court’s intervention.

However, in an oral ruling, the three appellate judges said the contractor’s application was not supported by cogent evidence to justify the court's “holding its hand against the successful litigant benefitting from a judgment in its favour.

In its application, China Jiangu, in part, said it, too, was owed for work done and was expecting payment in order to satisfy the debt.

In submissions on Friday, one of its attorneys, Keith Scotland, suggested a staggering of the payment and in default imposing a sanction.

“We will be able to pay if given time.”

However, the HDC’s lead attorney, Russell Martineau, SC, resisted the application, describing it as “scandalous.”

“We (the HDC) are being treated as if we have no rights...The country needs the money. We have houses to build.”

Before dismissing the application, Justice Kokaram, a former chairman of the Mediation Board, suggested the parties engage in mediation.

In a statement in May, China Jiangsu admitted there were a “number of difficulties with areas of the Las Alturas site.”

It added, “An independent commission of enquiry has published a report on the project.”

An 18-month public inquiry set up to investigate the process which led to the construction of the Ltowers at Lady Young Gardens, Morvant, and all other acts, was laid in Parliament in September 2016.

The two multi-storey units began falling apart after construction, and the $26 million towers were earmarked for demolition. They were part of a larger project, which was originally budgeted at $67 million but later rose to $90 million.

The commission’s report said while there were no grounds for criminal proceedings against anyone, civil action could be taken against former Udecott and HDC executives.

Former Udecott chairman Calder Hart and former HDC managing director Noel Garcia subsequently challenged the commission’s findings against them. Hart and Garcia weresuccessful in their challenges at the High Court and the Appeal Court.

Also appearing for the HDC is Kerwyn Garcia. John Jeremie, SC, leads the team for the contractor.