Barbara Gayle, Staff Reporter
FORMER HEAD of the Eagle financial network, Dr. Paul Chen Young, and two companies he controlled have been ordered by Revenue Court Judge Roy Anderson to pay approximately $1.2 billion to the Government-owned FINSAC Ltd.
The judge found that two business transactions by Dr. Chen Young constituted breaches of fiduciary duty, breaches of contract and negligence.
A four-week stay of execution of the judgment was granted following an application made by attorney-at-law Abe Dabdoub who represents Dr. Chen Young.
Dr. Chen Young created legal history in Jamaica by being the first person to testify by way of video link from overseas.
The suit was brought by the claimants, Eagle Merchant Bank and Crown Eagle Life Insurance Company, which were among the Eagle group of companies which the Government took control of in March 1996 for $1.
Defendants were Dr. Chen Young, Ajax Investments Ltd. and Domville Ltd.
LIABLE TO THE BANK
In handing down his decision yesterday, the judge held that the breaches were in relation to the refurbishing of premises at 24-26 Grenada Crescent, New Kingston, and therefore Dr. Chen Young and Ajax were liable to the bank in the sum of $242 million.
Solicitor-General Michael Hylton, Q.C., had argued on behalf of the claimants that although the bank paid large sums of monies for the refurbishing of the premises owned by Ajax, the bank did not benefit from it.
The judge ordered Dr. Chen Young to pay US$9.9 million (J$650 million) to the bank for the purchase of IBM shares in 1995 because there were breaches.
Dr. Chen Young and Domville have been ordered to pay US$11.5 million (J$747 million) to Crown Eagle.
Two of the claims which the claimants sought, for US$11.7 million for the acquisition of First Equity Corporation (FEC) and US$1 million for sums allegedly intermixed with monies in Dr. Chen Young's trading account at FEC, were denied. Judgment was awarded to Dr. Chen Young in respect of those sums.
