Barbara Gayle, Staff ReporterTWO FORMER customers of the City of Kingston Co-operative Credit Union have filed an application for a warrant of levy to recover a total of $5.8 million .
The warrant, which was filed in the Corporate Area Resident Magistrate's Court at Sutton Street, last week, stemmed from an arbitration award which was handed down by arbitrator Roy Stewart in September last year.
The customers, Yvette Reid and Mavis Henry, who are being represented by attorney-at-law Marvalyn Taylor-Wright, claimed that because of the failure of the credit union to return a registered land title to them, Mrs. Henry had lost a contract which she had with the Ministry of Education to supply goods to several schools.
REFERRED TO ARBITRATION
The dispute was referred to arbitration and the arbitrator found that the "tardiness of City of Kingston in finding and returning the title to them had resulted in one of the claimants losing a lucrative contract with the Ministry of Education as the title was needed to obtain funding elsewhere". The arbitrator said the credit union knew of the contract between Mrs. Henry and the Ministry of Education .
The cancellation of the contract resulted in a loss of $4,0666,994.22 to Mrs. Henry. When the contract was secured, rigorous attempts were made to get the title to obtain funding elsewhere.
The contract was cancelled on March 16, 2004, and on March 17, 2004, the credit union sent the title to attorney-at-law Bert Samuels whose services the claimants had engaged to try to get the title for them.
Reid had used the title to obtain loans from the credit union in the 1990s, but the loans were repaid in 1995. The arbitrator found that between 1995 to 1998 Reid had made repeated requests to get her parents' land title but was unsuccessful.
AWARD
The arbitrator considered the evidence and submissions from lawyers representing the parties and awarded Mavis Henry $4 million for loss of profit on the contract. The credit union was ordered to pay the claimants' legal fees.
The credit union appealed to Mr. Norman Gordon, Registrar of the Department of Co-operatives and Friendly Societies, against the award and a hearing was held in February this year.
Mr. Gordon handed down his ruling on March 31, and held that the claimants were entitled to an award for loss of profits in the sum of $4.3 million as previously awarded. He awarded interest at 12 per cent per annum on the sum until settlement is made in full.
He also ordered that costs of $340,000 plus GCT to be paid by the credit union to the claimants before April 18, failing which interest of 10 per cent per annum would become effective.
