Judge rejects hearing request in MovieTowne impasse

A High Court Judge has declined to weigh in on a variation of her order in relation to an ongoing legal dispute over control of MovieTowne in Port-of-Spain.

Last Friday, Trinbago Commercial Development Company Ltd (TCDC) sought an injunction after the Port-of-Spain Infrastructure Company Limited (POSINCO), which manages land held by the Port Authority of T&T (PATT) on which the entertainment and shopping complex sits, sought to take control of the property over $10,904,121.23 in rental arrears.

POSINCO was initially barred from issuing communications to its tenants, who were previously told by the authority that they had to make new arrangements with it over their continued occupation.

When the case came up for hearing before Justice Eleanor Donaldson-Honeywell on Monday, TCDC agreed to pay $3 million to the court and POSINCO agreed to not interfere with its operations and its tenants operations while its case is being determined.

Guardian Media understands that after the hearing, TCDC approached Justice Donaldson-Honeywell for a variation of her order, which was based on the parties’ undertakings.

In an email sent yesterday, however, Justice Donaldson-Honeywell refused to host a hearing today (August 31) to consider the proposed change.

“On reflection, I am not convinced of the need for a hearing on Saturday,” Donaldson-Honeywell said.

Noting that TCDC did not file an official application to vary her order, Justice Donaldson-Honeywell questioned whether a variation was, in fact, being sought.

“The variation sought is not substantive, as it seems to serve the purpose of clarifying what is meant by the ‘operations’ that the Defendant must not interfere with,” she said.

She also noted that even if she agreed to vary it after hearing legal submissions, the order could be changed when it is considered by a colleague who will be assigned to hear the substantive case.

“Thus, this order, if I vary it on Saturday, may only be relevant for a few days until the inter partes hearing is set,” she said.

Justice Donaldson-Honeywell gave the parties until 2 pm yesterday to report back if they had agreed to a variation.

However, Guardian Media was unable to confirm if an agreement was reached by the deadline.

The dispute between the parties relates to a lease for the 9.9 acres (4.0236 hectares) of land off the Audrey Jeffers Highway at Invader’s Bay occupied by MovieTowne.

Before construction began on the complex in 2001, the monthly rent was reportedly $6,500 per month based on a rate of 1.5 cents per square foot. The lease allowed for a rate review every five years. In 2006, the rent was increased to $72,000 per month. By 2021, the rental rate was set at $283,000 per month based on a rate of 65 cents per square foot.

POSINCO claimed it exercised its right to “re-entry” under the lease after TCDC failed to make any payments over the past three years.

“This re-entry exercise was undertaken as a consequence of breaches of the terms and conditions of the existing Deed of Lease between POSINCO and TCDC,” it said in a press release last week.

In a response, TCDC accused the authority and its subsidiary of “high-handed, illegal and bullying” action. Stating that it attempted to pay $1 million towards the debt last Monday, it said, “TCDC has offered to settle all outstanding rental sums which are not in dispute and attempted to pay such sums by cheque.”

“The cheque was returned notwithstanding current discussions to settle all matters, including disputed amounts,” it added.

In its substantive lawsuit, TCDC is challenging the latest rental increase, which was based on a report prepared by registered valuation surveyor GA Farrell & Associates.

In an affidavit, attached to its claim and obtained by Guardian Media, TCDC director Hadyn John Gadsby claimed the increase was invalid and under challenge.

“The Claimant’s position is that the rent review carried out by the Farrell Report is irrationally high and is therefore invalid and void as it could not have been carried out in accordance with the or special assumption agreed by the parties,” Gadsby said.

Stating that the premises should have been valued on the basis that it was a swamp before being developed by TCDC, Gadsby said the company received a report from another surveyor, who estimated the monthly rental value to be $82,980.17 based on a comparison with other similar properties.

He claimed the company paid $5,327,970.74 in additional rent based on the report and is requesting a rebate if it is successful in its case.

Through the lawsuit, TCDC is also seeking compensation for loss of profits it sustained as a result of POSINCO’s actions.

TCDC was represented by Deborah Peake, SC, Ravi Heffes-Doon and Andre Rudder. POSINCO was represented by Justin Phelps, SC.

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