Barbara Gayle, Staff Reporter
THE $2 BILLION lawsuit brought by the Government-owned Financial Institutions Services Ltd. (FIS) against Kingston businessman Donald Panton and other defendants began in the Supreme Court yesterday.
The amount claimed stemmed from the Government's takeover of the Blaise financial entities in 1994.
The entities, which comprised a merchant bank, Consolidated Holdings, and a building society, became insolvent in 1994. The Government had to pay millions of dollars to depositors.
Solicitor-General Michael Hylton, Q.C., in his opening submission said unsecured loans were made by the Blaise companies to three companies allegedly connected to the Pantons. The loans, amounting to $600 million, were never repaid.
OTHER DEFENDANTS
Defendants to the suit, which was filed in 1995, include Mr. Panton and his wife, Janet, and their son Jeffrey Panton, who were directors of the failed Blaise financial entities. Kingston attorney-at-law Raymond Clough, as well as Unijam Ltd., Dojap Investments Ltd. and DJNJ Investments Ltd, is also a defendant,.
Mr. Hylton said FIS was contending that the Pantons and Clough were paid employees or assumed senior managerial positions in one or more of the Blaise financial entities, and in that capacity owed the institutions a duty of care. Mr. Hylton said the defendants have denied the claim.
The Pantons are defending themselves in the civil suit. Mr. Justice Donald McIntosh refused to grant an adjournment yesterday to attorney-at-law Abe Daboub, who is representing the Pantons.
A criminal case against the Pantons, arising from the collapse of the companies has been pending in the Corporate Area Resident Magistrate's Court since 1996. They are charged with conspiracy to defraud the Bank of Jamaica and Blaise depositors of more than $600 million.
