Barbara Gayle, Staff Reporter
THE BILLION-DOLLAR suit filed four years ago by Financial Institutions Services (FIS) against Kingston businessman Donald Panton and some former directors of the collapsed Blaise Financial entities is pending in the Supreme Court.
Mr. Panton and his wife Janet, along with several former Blaise executives, are facing criminal charges in the St Andrew Resident Magistrate's Court. They are charged with several counts of conspiracy to deceive the Bank of Jamaica and defrauding depositors of over $600 million.
In the meanwhile, Mr. Panton has applied to the Supreme Court for an order to stay the civil proceedings until the criminal charges against him have been heard.
Justice Karl Harrison heard the application and is to make a ruling on the matter.
The latest saga between the parties took place on June 23 when FIS evicted Vehicles and Supplies Ltd., one of Panton's companies from Blaise Industrial Park at 60 to 75 Constant Spring Road, St. Andrew. The eviction took place shortly after Justice Harrison ruled in the Supreme Court on June 23 that Panton and his wife Janet should "forthwith deliver up possession of the said premises to the plaintiff." The defendants were ordered to pay mesne profits (received from the estate between two dates) to FIS.
Justice Harrison granted leave for the Pantons to appeal his ruling but up to Thursday afternoon no appeal was filed in the Court of Appeal Registry.
Michael Hylton, QC, of the law firm Myers Fletcher and Gordon who is representing FIS said last week that the Pantons had 14 days in which to appeal from the date of the order. Justice Harrison had ordered the Pantons to pay compensation for the time Mr. Panton's company had occupied Blaise Industrial Park. Mr. Hylton said that if Mr. Panton decided not to appeal the ruling then FIS would have to go back to the Supreme Court for a determination as to how much should be paid in compensation.
Attorney K. Sanley of the law firm Chancellor & Co. who is one of the lawyers representing the Pantons, declined to comment on the matter.
FIS has sued Mr. and Mrs. Panton and their son Jeffrey along with other former directors of Blaise for $1 billion in damages for breach of their fiduciary duty.
Donald Panton and his wife filed a counter-claim that FIS owed them a duty in the sale of the Blaise assets and therefore they were entitled to any surplus. They accused FIS of failing to develop or dispose of the assets of the Merchant Bank in a manner so as to achieve the greatest yield.
FIS filed an application to strike out the counterclaim and sections of the Panton's defence. Justice Harrison heard legal arguments from both parties and struck out the counterclaim. The judge said the counterclaim was frivolous and vexatious and was only intended to embarrass FIS and delay the fair trial of the matter. He then granted leave to the Pantons to appeal his ruling.
On April 10, 1995 the Minister of Finance assumed temporary management of the Blaise Financial entities which were the merchant bank, the building society and Consolidated Holdings because of unsound practices. A scheme of arrangements was sanctioned by the Supreme Court on October 26,1995 and the assets of the institutions were transferred to FIS.
