by Linda Straker
- Government’s legal team failed to provide convincing evidence on several of its defence
- Court ruled in favour of claimant
- Defendant shall pay the claimant damages and prescribed costs
A High Court Judge has ordered that the Government of Grenada pay thousands in compensation to CJ’s Managerial Services Limited for breach of contract. The matter came on for trial on 3 June 2025 before Justice Agnes Actie. The court, having heard the evidence and legal submissions, ruled in favour of the claimant.
“The court further directed the claimant 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 judgment, which is published on the Eastern Caribbean Supreme Court (ECSC) website.
CJ’s Managerial Services Limited is a limited liability company carrying on the business of providing services in the administration, management and implementation of projects. It entered into an agreement with the Government of Grenada from 1 January 2021 to 31 December 2022 to provide services in respect of the administration of the Constituency Offices of the Government, with an option to terminate by either party giving one month’s prior written notice.
By letter dated 6 July 2022, or about 2 weeks after the 23 June 2022 General Elections, which resulted in a change in administration, the company was given one month’s notice to terminate the agreement on the ground that its services were no longer required.
In her ruling, Judge Actie said that the court finds that the Government’s legal team which comprised Camille Gooding DeSouza and Aleya Williams, failed to provide convincing evidence on several of its defence including the claim that the 6-month limitation period as guided by the Public Authorities Protection Act applied to the matter and as a result the matter was statute barred.
“The defendant contends firstly that the claim filed on 21st June 2023, in excess of six months of the cause of action which accrued on 5th August 2022, is statute barred pursuant to Section 2(a) of the Public Authorities Protection Act,” the judge wrote. “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 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,” said the judgment.
The court said the Government failed to provide any authorities to support its argument that upon the dissolution of Parliament, all members’ offices are terminated and all business ceases until the new Government is in place.
“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,” the judge wrote.
In her judgment, Justice Actie ordered:
- The claimant’s claim is allowed
- The defendant’s counterclaim is dismissed
- The defendant shall pay the claimant damages in the sum of $70,730.87 with interest at the rate of 3% per annum from August 2022 until judgment and at the rate of 6% per annum from judgment until payment in full
- The defendant shall pay the claimant’s prescribed costs in the sum of $10,609.63 pursuant to part 65 of the CPR (Court Procedures and Rules) (Revised 2023) Edition
