Supreme Court orders contract cancelled after legal dispute drags on for four years

A dispute that has been in and out of court since 2016 has returned to the Supreme Court.

This  case concerns  an  agreement  dated  February 27, 2015  for the sale  by Island Management Ltd to Charlet Millen of  a  business,  assets  and undertaking  known  as the Coconet Cafe. 

Island Management was acting on behalf of Shyla and Isileli Kali.

The company has  been  struck  off  the  Register  of  Companies  and is no longer a legal entity capable of being sued.

On June 23, 2016, Lord Chief Justice Paulsen declared that the agreement was a valid contract, that Millen had honoured the terms of the agreement  and was ready, willing and able to complete the deal.

He found that the Kalis were in breach of the agreement because they had refused to deliver up possession of the business or assets as  agreed.

The judge ordered the defendants to  complete the agreement within seven  days.

However, the Kalis had refused to comply with the court order.

In June  2017,  Lord Chief Justice Paulsen made a timetable for the future conduct of the case.

“There followed a series of procedural  skirmishes  between  the parties requiring further  rulings  of  the Court,  changes  of  Counsel,  ill-advised  applications and tardiness of the parties which together led to considerable delays,” the judge said.

The Kali’s lawyer stopped representing them and since August last year neither of the Kalis had not taken any part in the proceedings.

Millen argued that since the defendants had refused to comply with the order and failed to  complete the agreement the agreement should be cancelled.

“I am satisfied that the defendants repudiated the agreement and have no intention, and now  no ability, to complete it,” the judge said.

“Mrs Millen is entitled to a declaration cancelling the agreement with an award of damages to be assessed.”

Lord Chief Justice Paulsen ordered that the agreement be cancelled.

He said Millen was entitled to costs.

The main points

  • A dispute that has been in and out of court since 2016 has returned to the Supreme Court.
  • This  case concerns  the sale  of  a  café.
  • Lord Chief Justice Paulsen ordered that the agreement be cancelled.  

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