By Lavern Clarke, Staff ReporterONCE HAILED as a stately complex that would epitomise modern city living, the near nine-year-old Dorchester has become the subject of a court battle between its developer John Cooke and creditors.
Sections of the New Kingston property are now under the control of Finsac's bad debt collection agent Dennis Joslin, but Cooke is intent on regaining control, sources say.
Ken Tomlinson of Business Recovery Services Limited began serving notices on 34 affected tenants in late July stating that all rent was now to be paid over to him, under power of mortgage No. 767191 three weeks after his appointment as receiver by Joslin Jamaica Limited/Jamaica Re-development Foundation Inc.
Four days later, on July 29, Cooke's firm, General Management Company Limited, issued its own letter advising tenants to ignore "any other company" and pay over the rent to GMC "as per your lease agreement."
INJUNCTION
Joslin's lawyers, Myers Fletcher and Gordon, shot back a month later on August 26 that the bad debt collector was free to appoint a receiver and have him collect the rent, citing a June 12 decision by the high court not to extend an injunction against such an appointment, originally granted in April.
In a gentle nudge for co-operation, the law firm advised tenants that any failure to comply means they "may be liable for damages for interference with contractual relations."
General Management had originally filed suit in February, which was accompanied by an affidavit from John Cooke, seeking to bar Joslin and his agents from selling the lands, identified as Norwood Lodge, No. 9 Oxford Road, and no. 8, 6, 4 and 2 at Norwood Avenue.
Joslin Jamaica came into possession of the apartments as part of the bad debt portfolio sold to Dennis Joslin by Finsac. The bail out agency had acquired the debts on the Dorchester as part of the debts it assumed on behalf of National Commercial Bank, whose Trust & Merchant Bank arm had been holding a $34 million mortgage taken out on the 60 apartment building in August 1993.
UP-STAMPED
That debt was "up-stamped to cover further indebtedness of $75 million", which official records indicate was done on June 30, 1994.
But not all of the property has been affected. Some of the apartments are owned by individuals, and the ground floor which is occupied by National Investment Bank of Jamaica is the property of the state investment agency.
Developed in 1994, the Dorchester was a joint venture project between GMC and National Housing Corporation, with the Housing Ministry putting up the land.
Prices quoted for the apartments originally ranged between $2.25 million and $4.5 million for units that were to be equipped with all the modern conveniences.
The building, viewed from Oxford Road, is partially obscured by a green zinc fence.
Tomlinson refused official comment on his new appointment. However, sources say that the initial plan is to sell the 34 affected apartments, "unless a deal is brokered" between Joslin and the developer in the interim. How much of the $75 million the Texan seeks to recover is a decision he will make, and not Tomlinson, Wednesday Business was told.
Called for comment on the developments, Cooke's office said he could not be reached. A statement faxed later by GMC corporate advisor, Elaine Myers, said the issue forms part of the suit filed in the Supreme Court and therefore was not up for discussion.
"Until those matters are determined in accordance with the judicial process, GMC has no comments," said Myers. "Suffice it to say we absolutely deny there is an outstanding balance owed to the claimant."
Meantime, Wednesday Business understands that the property is among several islandwide in which a group of British developers have indicated interest.
