The trial of the Sports Company of T&T Limited (SporTT)’s case against its former board members over a failed $34 million contract related to the controversial Life Sport programme is expected to continue Wednesday with the evidence of an expert witness.
SporTT’s expert witness is expected to take the witness stand before Justice Ricky Rahim at the Waterfront Judicial Complex in Port-of-Spain on the third day of the trial.
Once the cross-examination of the expert is complete, the defendants in the case are expected to begin to testify in their defence and be cross-examined by SporTT’s lawyer, Colin Kangaloo, SC, on Friday.
During yesterday’s hearing, lawyers for former SporTT chief executive officer John Mollenthiel and 13 former board members completed their cross examination of the company’s corporate secretary, Arlene George.
Between Tuesday and yesterday, George was repeatedly quizzed over the contract with eBeam Interact Limited to administer the numeracy and literacy and the interactive technology components of the occupational skills training aspect of the programme.
While being cross-examined by attorney Neil Bisnath referred to correspondence from the Ministry of Sport, which he suggested directed the board to select eBeam based on a sole select tender.
“I do not agree that it was a directive,” George said.
Asked to describe the nature of the correspondence, George said, “It was a recommendation.”
George was then quizzed by Senior Counsel Rishi Dass over the steps taken by her and other SporTT officials to determine whether eBeam had performed its obligations, including procuring equipment.
“You cannot say what was provided,” Dass said.
“I cannot say yes or no,” she admitted.
While being quizzed by Senior Counsel Anthony Vieira, George admitted that the then-government would have been aware of the contract and sought to guarantee it.
In the lawsuit, SporTT is contending that the board members breached their fiduciary duty in entering into the contract.
Opening the case on Tuesday, Kangaloo described the group’s actions as reckless and incompetent.
He said, “It can’t be that they acted reasonably and honestly. They acted recklessly, bordering on incompetence.”
He claimed that none of the directors saw the contract when it was eventually signed in July 2013 and eBeam was paid half of the value.
“Remarkably nobody asked questions about the contract like the deliverables or how they could be exposed,” Kangaloo said.
Kangaloo rejected the group’s claim that they only paid eBeam the balance on the contract after seeking legal advice in December 2013.
“They can’t be protected, as if they exercised proper due diligence, they would have never entered into the contract in the first place,” Kangaloo said.
“We say they are negligent,” he added.
He also contended that the group members could not claim that they were acting on the instructions of the ministry as they entered into the contract on the company’s behalf.
The defendants in the case are Mollenthiel, Sebastian Paddington, Chela Lamsee-Ebanks, Reynold Bala, Norris Blanc, Nisa Dass, Anyl Gopeesingh, Sabrenah Khayyam, Cheemattee Martin, Matthew Quamina, Annan Ramnanansingh, Kent Samlal, Harnarine Seeram Singh, and Milton Siboo.
On August 22, High Court Judge Eleanor Donaldson-Honeywell rejected SporTT’s breach of contract case against eBeam but ordered it to pay $30 million in restitution as she ruled that it was unjustly enriched for services it did not provide.
While SporTT was seeking the entire value of the contract, Justice Donaldson-Honeywell deducted $4 million, which represented the nominal services inclusive of the procurement of equipment provided by eBeam.
“It would be legally unjust for the defendant to retain the benefit of $34 million when only the minimum value, unrelated to any substantial delivery of the bargained-for services, was received by the claimant under the contract,” Justice Donaldson-Honeywell said.
“The minimal services provided by the defendant did not meaningfully meet the benefit that was intended by the parties to be delivered to the claimant,” she added.
eBeam still has the option to appeal the outcome.
SporTT has contended that the case against eBeam has no bearing on the parallel litigation against the group.
John Lee and Stephanie Moe are appearing alongside Kangaloo for SporTT.
The group’s lawyers include Fyard Hosein, SC, Jagdeo Singh, Shiv Sharma, Karina Singh, Keston Lewis, Roger Kawalsingh, Ravi Mungalsingh, Tara Bhariosingh, Anil Maraj, Nicole de Verteuil-Milne, Adrian Ramoutar, Sushma Gopeesingh, Kamini Persaud-Maraj, Lydia Mendonca, Richard Jagai, Andrea Bhagwandeen, and Dharmendra Punwassee.