The Caribbean Court of Justice (CCJ) Thursday ordered the CLICO International Life Insurance Limited (CLICO) to pay more than EC$1.4 million to two Dominican brothers within 10 days.
Justice David Hayton, who delivered the judgment on behalf of the Court, said that the CLICO Judicial manager had to pay the debt of EC$1.423 million to Octavius John and Laurent John within 10 days of the Court’s judgment.
The CCJ noted that the circumstances of the appellants were unique, given the circumstances of the case.
It said that CLICO is a Barbadian company, in the business of general and life insurance, investment annuities and other investment products, which ran into financial difficulties.
The appellants, who live in Dominica, had invested in several “Executive Premium Annuity” policies from CLICO to fund their retirement, but at the expiration of these policies, CLICO did not pay the brothers their entitlements.
The Court heard that after much stalling by CLICO, the brothers were forced to resort to the High Court of Dominica to recover the funds due on surrendering the policies. In September 2010, the brothers obtained default judgment against CLICO in the sum of EC$1,423,329.46 plus interest.
But after further delay by CLICO, the John brothers obtained a consent order in February 2011 by which CLICO undertook to pay EC$75,000 monthly, though beginning at the end of April in that year and continuing until the judgment was paid. CLICO also undertook to pay costs and interest to them.
However, from 14 April 2011, CLICO was placed under judicial management in accordance with the Insurance Act of Barbados and no payment was made to the John brothers.
The CCJ heard that the Insurance Act stated that all court orders must be placed on hold and further action could not proceed without the leave of the court being obtained or unless the court otherwise directed.