Carney et Al v Shoal Bay Vallas Ltd

• Jurisdiction: Anguilla
• Judge: Saunders, J.
• Judgment Date: 26 June 1997
• Neutral Citation: AI 1997 HC 2
• Docket Number: No. 42 of 1995
• Court: High Court (Saint Christopher, Nevis And Anguilla)
• Date: 26 June 1997

High Court

Saunders, J.

No. 42 of 1995

Carney et al

and

Shoal Bay Vallas Ltd.

Appearances:

Ms. J. Kentish for the Plaintiff.

Mr. K. Porter for the Defendant

Practice and procedure - Plaintiff claimed damages for breach of contract — Defendant company had gone into receivership since the filing of the writ — Court allowed leave to plaintiff to amend that statement of writ to include the Anguilla National Development Co. Ltd.

Saunders, J.

1 These proceedings are interlocutory in nature. They concern the powers of the court to grant leave to amend and to join new parties.

2 The Plaintiffs are home owners of villas located at Shoal Bay. They entered into a Management Agreement with the Defendant company in respect of the villas. The Defendants manage the operations of the villas pursuant to that Management Agreement.

3 The Defendant company is a wholly owned subsidiary of the Anguilla National Development Company Limited (ANDCO). The Plaintiffs allege that the Management Agreement with the Plaintiffs is the only income generating asset of ANDCO and of the Defendants. During the course of these interlocutory proceedings this allegation was not challenged.

4 Differences arose between the Plaintiffs and the Defendants. On April 28th, 1995 the Plaintiffs instituted proceedings. A specially endorsed writ was filed claiming, inter alia, damages for breach of contract. The home owners are not satisfied with the manner in which the Defendants have been managing the villas nor with the returns they are receiving.

5 Since the filing of the suit, the Defendant company has gone into receivership. On the 25th October, 1995 the Hon. Mr. Justice Neville Smith ordered that Malcolm Hope-Ross be appointed to receive the rents and profits of the Defendant company and to manage the same.

6 In the course of fulfilling his responsibilities, Mr. Hope-Ross prepared and filed certain unaudited accounts relating to the operations of the Defendant company. The Plaintiffs, having perused those accounts, assert that they demonstrate that the Defendant company “wrongfully misappropriated to its use and/or to the use of (ANDCO)” certain sums of money aggregating US$171,145.00.

7 Armed with this new information, the Plaintiffs now seek to amend their Writ and Statement of Claim. They have applied by summons for leave so to do. They also wish to join ANDCO as Defendants. For the first time they propose to allege fraud against both ANDCO and the original Defendants. Their application is made pursuant to Order 15 and Order 20 of the Rules of the Supreme Court.

8 The Defendants stoutly resist...