Judge to rule on $34m LifeSport lawsuit in 2025

A HIGH COURT judge will give his decision in May 2025 in the negligence claim against 13 ex-directors of the Sports Company (SporTT) and its former CEO over a $34 million contract to eBeam Interact Ltd in the failed LifeSport programme.

Evidence ended on September 26, with ex-CEO John Mollenthiel completing his testimony.

Justice Ricky Rahim is expected to give his ruling on May 19, 2025. Before he does, attorneys are expected to file written submissions.

The trial began on September 10. Testifying for SporTT was its corporate secretary and general counsel, Arlene George. All but one of the former directors testified since one died and was substituted by a representative.

The SporTT’s claim of negligence is against its former CEO John Mollenthiel and ex-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 and Milton Siboo.

In May 2023, the Appeal Court gave SporTT the green light to pursue the negligence claim over the failed LifeSport programme and the relief for the repayment of $34 million to eBeam Interact Ltd for literacy and numeracy services.

This followed a ruling by Rahim in November 2022, which struck out a major portion of SporTT’s lawsuit because “it could not be sustained in the absence of proof of actual loss or damage.”

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

What was left for the trial was the allegation of breach of fiduciary duty. The Appeal Court overturned this.

On August 21, SporTT successfully claimed restitution against eBeam for the failed $34 million contract.

SporTT brought both cases, contending it should be reimbursed the $34 million it paid to eBeam and its now-deceased owner Adolphus Daniel to administer the numeracy and literacy and interactive technology components of the occupational skills training aspect of the programme.

It alleged that eBeam did not provide the services for the programme, which was aimed at transitioning unemployed young men to responsible adulthood by providing sport training, occupational skills training and job placement.

It also claimed that Mollenthiel and the former board members should be held liable for entering into the contract.

As part of the case, SporTT also claimed eBeam was overpaid, as the contract was for providing services at 38 centres, when in fact there were only 33 such locations.

In an opening statement, SporTT’s lead attorney Colin Kangaloo, SC, admitted the case was “one of documents.”

“The documents tell the full story.”

He said the 14 breached their fiduciary duties and were negligent, as there was no justification for approving the eBeam sole-select contract. He also said all 14 had a duty of care which they breached when they did not thoroughly question the contract.

“No one picked up on the errors (in the contract) or asked questions.”

He said none of the directors saw the $34 million contract before it was entered or knew of the terms.

He said when the two tranches of $17 million were paid, they raised no concern and went ahead because of legal advice they had received.

“They were reckless, bordering on incompetence.”

The ex-directors contended in their defence they were following the directives of the government.

In their evidence, they denied they were negligent or were in breach of their duties. They also maintained that SporTT did not suffer a $34 million loss since the LifeSport programme was covered by two loans guaranteed by the government.

The controversial LifeSport programme was shut down by then-prime minister Kamla Persad-Bissessar in July 2014.

John Lee and Stephanie Moe also represent SporTT while the ex-directors are represented by Fyard Hosein, SC, Rishi Dass, SC, Anthony Vieira, SC, Neil Bisnath, Karina Singh, Roger Kawalsingh, Anil Maraj, Nicole de Verteuil-Milne, Kamini Persaud-Maraj, Richard Jagai, Sasha Sukram and Dharmendra Punwasee. One of the directors represented himself.