ST. GEORGE’S, Grenada, Aug 8, CMC – A High Court judge has ordered the Grenada government to pay more than EC$70,000 (One EC dollar=US$0.37 cents) to a managerial company, whose services were terminated following the 2022 general elections.
CJ Managerial Services Limited, a limited liability company carrying on the business of providing services in administration, management and implementation of projects, had filed the lawsuit for breach of contract.
In a written statement outlining her ruling, Justice Agnes Actie further directed the company to collate the evidence to substantiate the amount claimed as special damages.
“The court now gives its reasons for the decision in favour of the claimant and its determination on quantum of damages,” said the judgement, published on the Eastern Caribbean Supreme Court (ECSC) website.
CJ Managerial Services Limited had entered into an agreement with the Grenada government effective from January 1, 2021 to December 31, 2022 to provide the services with respect to the administration of the Constituency Offices of the government.
The agreement had an option to terminate by either party giving one month’s prior written notice.
But two weeks after the June 23, 2022 general election, the new government of Prime Minister Dickon Mitchell sent a July 6, 2022 letter to the company giving it a one month notice before terminating the agreement on the grounds that the services were no longer required.
But in her ruling, Justice Actie said that the Court found that the government failed to provide convincing evidence on several of its defence including the claim that the six month limitation period as guided by the Public Authorities Protection Act applied to the matter and as a result the matter was statute barred.
“Secondly, the defendant contends that the contract was frustrated on the dissolution of Parliament on 16th May 2022 since there no longer existed members of Parliament as the Constituency Offices ceased to be operational. Thirdly, the defendant asserts that there was an automatic termination of the Agreement by operation of the force majeure clause,” the Judge said.
She said that the government defendant “further denies that there was a breach of the contract and counterclaimed against the claimant for a refund of all sums paid to the claimant between the period 14th May 2022 to 6th July 2022, after Parliament was dissolved.
“However, the defendant failed to file its witness statements as directed in the case management conference order and was therefore unable to deploy its evidence at the trial on its defence and counterclaim. The claim accordingly proceeded on the claimant’s evidence”.
The High Court said that the government’s argument that upon the dissolution of Parliament all members’ offices are terminated and all business ceases until the new government is in place.
But the judge said that the government failed to provide any authorities to support the arguments.
“The Court is of the view that it would be a stretch of the principles of frustration to state that on the dissolution of Parliament all obligations under a legally enforceable contract with the Government would automatically come to an end.
“To put such a meaning would mean that all administrative processes would be on hold until a new Parliament is elected. As the authorities define, frustration of a contract occurs when unforeseen events, beyond the control of either party, make it impossible or radically different to perform the agreed obligations,” Justice Actie said.
As a result, she dismissed the government’s counterclaim and ordered it to pay damages in the sum of EC$70,730.87 with interest at the rate of three per cent per annum from August 2022 until judgment and at the rate of six per cent per annum from judgment until payment in full.
In addition, the High Court also ruled that the government shall pay the compact’s prescribed costs in the sum of EC$10,609.63
CMC/ls/ir/2025