By Barbara Gayle, Staff Reporter
THE SUPREME Court has given the go ahead for Dr. Paul Chen Young, former chairman and chief executive officer of the Eagle financial network, to testify by way of video link in the $1 billion suit which the Government has brought against him and his companies.
Chen Young's lawyers had sought permission for him to testify by video link as the lawyers said Chen Young had expressed fear that if he returned to Jamaica to testify he would be arrested.
A government representative will be present in the room in Florida where Chen Young will be testifying.
After Mr. Justice Roy Anderson granted Chen Young's request, Michael Hylton, Q.C., Solicitor General, applied to the court for a Government representative to be present during the businessman's testimony.
Under the new Supreme Court Rules which came into effect in 2002, a witness in a foreign country can testify by way of video link.
Chen Young sold the failed bank and insurance company to the government-owned Financial Sector Adjustment Company (FINSAC) in March 1997 for $1.
The government sued Chen Young and his companies Ajax Investments Ltd. and Domville Limited in 1998 to recover $1 billion. Chen Young was also sued for breach of fiduciary duty, breach of contract and negligence.
Chen Young's assets have been frozen pending the outcome of the suit against him. He had applied to the Supreme Court and Court of Appeal to strike out the statement of claim and the injunction freezing his assets but was unsuccessful.
DEFENCE
In his defence, Chen Young is contending that he was not liable for the Government's claims against him. He said the decisions were made by the relevant board of directors and not by him, therefore he should not be held liable.
Eagle Merchant Bank Ltd. and Crown Eagle Life Insurance Company Ltd. are the claimants in the suit which the Government has brought against the defendants. The Government is seeking to recover $65 million which the bank spent to refurbish a building at 24 to 26 Grenada Crescent between 1995 and 1997.
The leases for the premises expired in November 1997 and the court is being asked to determine if that transaction constituted a breach of fiduciary duty on Dr. Chen Young's part. Other claims include more than US$5 million lost as a result of the purchase and operation of First Equity Corporation (FEC) in Florida and the loss of more that US$4 million which EMB traded in shares in IBM Corporation.
Mr. Hylton, in opening the government's case, said yesterday that investigations revealed that about US$580,000 of the bank's money ended up in Dr. Chen Young's personal trading account at FEC.
Dr. Chen Young is contending that the US$580,000 was legitimately due to him.
Witnesses for the Government will begin to testify today when the hearing resumes in the Supreme Court.
