Pay US $1M judgment in TT dollars

A 17-year court battle for royalties ended on Monday when the Judicial Committee of the Privy Council ruled that IMH Investment Limited which won a US $1,060,954 judgment should be paid in Trinidad and Tobago currency and not in United States currency.

After getting the judgment from the late Master Lloyd Gopeesingh, IMH Investment went ahead and registered the judgment to be paid in US currency. But Trinidad Home Developers Limited appealed against the registration. Last Monday, the Privy Council comprising Lords Hoffmann, Hope, Scott, Walker and Sir Kenneth Keith, allowed the appeal of Trinidad Home Developers and ordered IMH Investment to pay costs. Trinidad Home Developers has been in liquidation since 1988 but its affairs have not yet been wound up. In 1978, IMH Investment granted Home Developers a licence to use a process for building houses out of pre-fabricated concrete panels in which it held certain patents. Home Devel-opers agreed to pay a royalty of US 45 cents per square foot of concrete panel. Home Developers paid the royalties until July 1985 and then stopped, leaving US $1,060,954 outstanding.

On June 23, 1986, IMH Investment issued a writ which claimed payment of US $1,060,954, followed by a summons for summary judgment. Home Developers filed affidavits in opposition and the matter came up before Master Gopeesingh. On January 13, 1987, Master Gopeesingh held there was no arguable defence and gave IMH Investment leave to sign final judgment. However, the amount payable, as expressed in the Master’s judgment and the order as drawn up, was not in the same terms as the writ. The writ had simply asked for payment in US currency. Master Gopeesingh gave judgment for “an equivalent in Trinidad and Tobago currency, to the sum of $1,060,954.45 United States currency.”

According to Lord Hoffmann, this could have meant that the unit of account was TT currency and the amount payable was the equivalent in that currency of US $1,060,954.45 at the rate of exchange prevailing at the date of the judgment. He added, “So, the plaintiff would get less than $1,060,954.45 if the TT currency fell against the US dollar between the date of the judgment and the date of actual payment.” On March 13, 1987, IMH Investment registered the judgment in the form in which it had been sought in the writ — simply US $1,060,954 rather than in the form of the Master’s order. Having registered the judgment, IMH Investment did nothing more to enforce it. Master Gopeesingh granted leave to Home Developers to appeal to the Court of Appeal and a stay of the order pending an appeal. IMH Investment cross-appealed against the form of the order, asking that it should be expressed in US dollars in accordance with the writ. The appeal took a long time to be heard. Home Developers went into voluntary liquidation on June 1, 1988.