Barbara Gayle, Staff Reporter
HENRY FULLERTON, former head of the failed Caldon Group of Companies, has been ordered by the Supreme Court to pay loans amounting to over $600 million to the National Commercial Bank (NCB).
Justice Campbell made the order on Friday when he upheld an application by the bank for summary judgment because Mr. Fullerton and his companies did not file a defence to the suit.
Mr. Fullerton, who is also a director of MCS Investments Ltd., had applied for an extension of time to file a defence and counter-claim but the judge turned down that request.
The judge, in ruling in favour of the bank, said "in these proceedings the burden is on the defendant (Mr. Fullerton) to satisfy the court that he has a good defence. Once the court is satisfied that there are triable issues or there is an arguable defence, it must allow the matter to proceed to trial. It is my view that the defendants have not satisfied the court that there is a fair or reasonable probability that they have a real or bona fide defence."
The bank had filed a suit in November 1998 to recover the money from Mr. Fullerton and his companies. Mr. Fullerton did not file a defence to the suit and the bank applied for summary judgment on January 20, 1999.
Mr. Fullerton and his companies will have to pay the bank $501 million with interest at 45 per cent from September 9, 1998 and interest at 12 per cent per annum on the sum of US$216,341 from September 8, 1988. He will have to pay $57 million in addition to US$2.1 million with interest. He is also to pay $2.3 million with interest on the said sum from September 19, 1988 at the rate of $1,706.63 per diem.
Mr. Fullerton's companies Caldon Finance Group and MLS were customers of the bank and had loans and credit facilities with the organisation. The loans and credit facilities were secured by guarantees made by the defendant Fullerton. He is also personally liable to the bank in respect of personal overdraft facilities.
In opposition to the application for summary judgment, Mr. Fullerton had filed an affidavit in which he said "I deny that I am indebted to the plaintiff in the amount of $501,675,741 and US$215,841 or the amount of $57,899,316 and US$2,159,305 or at all."
