Contractor's claim against Cepep withdrawn, new lawsuit coming

A Laventille contractor who took the Community-Based Environmental Protection and Enhancement Programme (Cepep) Company to court over an alleged breach of contract has abruptly withdrawn its legal challenge, less than 24 hours after filing it in the High Court.

Stephen Samuel’s Contractors Ltd launched the lawsuit on July 3, seeking to overturn Cepep’s decision to terminate its contract. But by July 4, the company had withdrawn its claim form, statement of case, and request for injunctive relief.

The original claim was withdrawn after it was discovered that Samuel’s company had been struck from the Companies Registry.

However, Newsday understands a new claim is expected to be filed in the coming days.

The contractor’s legal team, led by Senior Counsel Larry Lalla, St Clair O’Neil and Kareem Marcelle, had previously issued a pre-action protocol letter to Cepep CEO Keith Eddy on July 3. The letter demanded the immediate rescission of a June 27 termination notice and threatened legal action if no response was received by 3 pm that day.

Samuel’s company argued the termination was unlawful, contrary to public policy, and violated principles of natural justice. They disputed the validity of Clause 15 of the Cepep contract, which permits termination with 30 days’ notice or payment in lieu, calling it an unfair term under the Unfair Contract Terms Act 1985.

However, Cepep’s response, sent by Jared Jagroo, led by Anand Ramlogan, SC of Freedom Law Chambers, challenged the legality of an April 23, 2025, contract extension, issued just five days before the general election. Cepep questioned the timing, transparency, and approval process behind the extension, raising concerns of political interference, nepotism, and potential backdating.

Just hours after receiving Cepep’s rebuttal, the contractor filed a notice of withdrawal, ending the court matter.

In a follow-up letter dated July 4, Cepep accused the contractor of abusing the court process, claiming the legal action was politically motivated and legally baseless.

“This claim was misconceived, hopeless, frivolous, and vexatious,” Cepep’s attorneys wrote. “It was clearly an abuse of the court’s process for the dubious purpose of providing perceived legal political ammunition.”

“This claim was clearly filed with ulterior political motives,” Cepep stated. “It was promoted by frontline lawyers of the Opposition People’s National Movement (PNM) following their internal elections, despite having no legal merit.”

Cepep's attorneys said a group of PNM-affiliated lawyers had taken on the matter as a so-called “test case,” but the lawsuit turned out to be “misconceived, hopeless, frivolous and vexatious.”

The company has also asked whether any similar claims are planned by other contractors, saying it stands fully prepared to defend itself.

It further claimed the legal challenge was used to publicly attack the government and the Minister of Public Utilities.

“Despite calling the matter urgent, the contractor suddenly dropped the case without explanation,” Cepep noted, adding that the move wasted resources and caused significant legal costs.

As a public body, Cepep said it is committed to accountability and has instructed its legal team to notify the court of its intention to seek reimbursement for those legal expenses.

The company also revealed that Samuel’s company had received over $7 million in payments between 2018 and 2025 and had consistently benefitted from contract renewals, despite Cepep’s stated policy of offering short-term contracts.

With the original claim now withdrawn, Cepep has indicated it will seek legal costs and is considering referring the matter to relevant authorities for further investigation into alleged contractual or legal breaches.