分类： business

In a landmark legal reversal, the Judicial Committee of the Privy Council has unanimously allowed an appeal by Trinidad and Tobago’s Water and Sewerage Authority (WASA), nullifying a multimillion-dollar award previously granted to contractor Uniform Building Contractors Ltd (UBC). The January 22 judgment reinstates the High Court’s original dismissal of UBC’s claims, marking a significant victory for the state utility.

The dispute originated from a 2007 design-build contract valued at $28 million for pipeline installation between Rio Claro and Mayaro. WASA terminated the agreement in 2009, prompting UBC to seek $13.9 million in compensation for alleged variations beyond the lump-sum contract. The contractor claimed additional costs for roadway pipe-laying, material disposal, backfill importation, and night work.

Delivering the ruling, Sir Peter Coulson declared the Court of Appeal’s 2023 decision “fundamentally flawed” in its legal reasoning. The Privy Council determined that all four contested work items were expressly or implicitly included within the original contract scope and pricing structure. Crucially, the judgment emphasized that contractual interpretation—not an engineer’s on-site opinion—governs variation determinations.

The Board further rejected appellate arguments regarding waiver and estoppel, noting these issues were never properly pleaded or evidenced during trial proceedings. Most damningly, UBC failed to comply with mandatory contractual procedures requiring variation claims to be submitted within 28 days—a condition precedent that barred any entitlement to additional payment.

The ruling clarified that contract termination operates prospectively, unable to resurrect time-barred claims. “The eventual termination could not, in law, resurrect claims that had not been made in time,” the judgment stated, underscoring that contractual rights and obligations accrued before termination remain unaffected.

Legal representation featured Anand Ramlogan, SC, Kate Temple-Mabe, and Ganesh Saroop for WASA, while Irshaad Ali and Adam Razack represented UBC. The decision reinforces strict adherence to contractual notice provisions and affirms that fairness arguments cannot override clear procedural requirements.

PORT OF SPAIN, TRINIDAD AND TOBAGO – The MV Blue Wave Harmony, the newly designated replacement for the Cabo Star on the critical inter-island seabridge, made its inaugural arrival at the Port of Port of Spain on January 22. This strategic introduction marks a significant infrastructure upgrade for the nation’s maritime transport network.

The state-of-the-art roll-on/roll-off (ro-ro) vessel represents a substantial advancement in both cargo and passenger capabilities. It features significantly increased cargo capacity, state-of-the-art refrigerated storage facilities for perishable goods, and markedly improved passenger accommodations. These include private cabins and enhanced onboard amenities, aiming to transform the travel experience between the islands.

From an operational perspective, the Blue Wave Harmony incorporates upgraded mechanical systems and built-in redundancies specifically engineered to minimize mechanical failures and reduce downtime. This addresses a persistent challenge that has long plagued freight operators and travelers reliant on the seabridge’s consistency.

The business community in Tobago has responded with cautious optimism. Curtis Williams, Chairman of the Tobago Division of the TT Chamber of Industry and Commerce, characterized the vessel’s arrival as “a positive and timely development.” He emphasized to Newsday that reliable sea transport is absolutely critical for numerous sectors, including distribution, food and beverage, hardware, construction, and retail, all of which depend on the seabridge to maintain inventory and manage supply chains.

However, the transition has not been without its critics. Martin George, Head of the Tobago Business Chamber, expressed significant concerns regarding a lack of transparency. He highlighted that essential operational details—such as the vessel’s exact capacity, scheduled sailing times, number of weekly sailings, and associated costs—have not been adequately communicated to the public or the business community. George pointed to the prior efficiency of the Cabo Star and stressed the necessity for clarity on the leasing costs and operational framework of its replacement to ensure the new service meets the islands’ economic needs.

In a landmark ruling that marks the end of an era for Trinidad and Tobago’s media landscape, the High Court has officially ordered the liquidation of Daily News Ltd, parent company of the Newsday newspaper, after 32 years of operation. Justice Marissa Robertson granted the winding-up petition on January 23, effectively terminating the publication’s print operations that began in September 1993.

The court appointed Maria Daniel, a chartered financial analyst and partner at Ernst & Young Services Ltd, as liquidator tasked with assuming control of the company’s assets and managing debt repayment to outstanding creditors. The application faced no objections following its official publication in the Gazette on January 15.

Legal representatives for Daily News Ltd, including attorneys Gregory Pantin and Miguel Vasquez of Hamel-Smith and Company, presented arguments highlighting the company’s insolvency and inability to meet financial obligations. Pantin specifically advocated against provisional liquidation, emphasizing the need for immediate commencement of the winding-up process to minimize additional risks.

The petition cited Section 355(a) of the Companies Act as legal grounds for dissolution, stating shareholders deemed court-supervised liquidation “desirable and in the best interests of the company” given its unsustainable financial position.

While Newsday published its final print edition on January 9, its digital operations continue pending the liquidator’s assessment of their viability during the proceedings. The hearing also addressed concerns regarding archival preservation, with interested party Brent Mark Bristol requesting formal safeguards for the newspaper’s historical records.

Managing Director Grant Taylor previously characterized the closure as resulting from “a perfect storm of challenges” affecting print media globally. He cited multiple contributing factors including a 75% decline in print advertising revenue over the past decade, soaring production costs, changing reader preferences, and financial impacts from lengthy legal battles that left the company over $3 million out of pocket despite successful litigation outcomes.

Taylor noted that even a minimal price increase from $2 to $3 prompted 40% of readership to abandon the publication, reflecting broader industry challenges in monetizing content. Despite the closure, Taylor expressed pride in Newsday’s legacy of “unwavering independence” and emphasized the critical role of media in maintaining democratic integrity.

A prominent voice from Princes Town has issued a stern warning regarding the National Gas Company of Trinidad and Tobago’s (NGC) recent decision to impose substantial increases in natural gas prices for local manufacturers. This strategic move, intended to boost NGC’s revenue streams, has raised significant concerns about its broader economic repercussions.

The correspondence draws a direct parallel to a similar policy enacted by the previous PNM administration in 2016, which resulted in the permanent closure of the ArcelorMittal steel plant. That decision led to substantial job losses and a decline in foreign exchange earnings—consequences that now threaten to repeat themselves.

This pricing shift directly contradicts the stated objectives of the Ministry of Trade Investment and Tourism, which has been actively promoting export growth, investment strengthening, and employment expansion. Instead of fostering these goals, the increased production costs will undermine local manufacturers’ competitiveness against subsidized imports in both domestic and international markets.

The author points to global economic strategies for contrast: China has implemented export taxes on raw materials to stimulate domestic downstream production, while the United States employs tariffs to protect its manufacturing sector. Trinidad and Tobago appears to be moving in the opposite direction, inadvertently making foreign goods more competitive than locally produced items.

Manufacturers are already grappling with rising electricity costs and National Insurance Scheme contributions. The natural gas price increase represents an additional burden that could diminish productivity, reduce employment opportunities, and decrease foreign exchange earnings—ultimately harming the nation’s economic stability and growth potential.