McClees and Lloyd v Gumbs and Harrigan

• Jurisdiction: Anguilla
• Court: High Court (Saint Christopher, Nevis And Anguilla)
• Judge: F.E. Field
• Judgment Date: 16 June 1976
• Neutral Citation: AI 1976 HC 1
• Docket Number: 1 of 1971
• Date: 16 June 1976

High Court

F.E. Field

1 of 1971

McClees and Lloyd

and

Gumbs and Harrigan

Appearances:

Kr. C. E. Francis with Miss. B. V. Lake for Plaintiffs

Dr. W. V. Herbert for Defendants

Tort - Damages — Libel and slander — Newspaper article.

F.E. Field

1 The plaintiffs are claiming damages for libel contained in a letter written by the first defendant and published in an issue of the Beacon Newspaper of the 28th August 1971 under the caption “Letter to the Editor, by Jeremiah Gumbs.” The defenses pleaded-are that the words are not defamatory, they are true and they are fair comment made in good faith and in the public interest. In their reply the plaintiffs allege express malice on the part of the writer, viz, Jeremiah Gumbs, and give particulars under five heads in support of their allegations of express malice.

2 The first named plaintiff, Peter J. McClees, is an American citizen. He is a retired businessman. He came to Anguilla in 1963. He stayed at the Rendezvous Bay Hotel. Rendezvous Bay Hotel was and is owned by the first named defendant Jeremiah Gumbs. At the time the hotel was being enlarged under the general supervision of Mr. and Mrs. Lloyd, the parents of the second plaintiff, Clayton Lloyd. Mr. McClees remained at the hotel until 1967. He paid as any other guest of the hotel. He became on intimate terms with Jeremiah Gumbs and the Lloyds including Clayton Lloyd, then a youngster, and he assisted in and about the construction of the hotel by driving a pickup bringing sand and transporting the workmen to and from work. McClees used to help out with the electrical and plumbing work. This relationship was on such a firm foundation that at McClees' suggestion a bungalow was built for his use and partly financed by him and partly by Jeremiah Gumbs. McClees also installed an electric generator so as to be able to have lights after the usual hours of the hotel.

3 Jeremiah Gumbs had emigrated from Anguilla to the USA in 1937 and was in business there in New Jersey. He became a US citizen. He first returned to Anguilla in 1956 and thereafter made regular visits once a year with his wife and children.

4 made through a Michigan Bank and a Charter Mortgage; Exhibit 6, showing McClees as mortgager. The certificate from the F.A.A. for an Airline and Charter Service was issued to Peter J. McClees, he being a US citizen. The operating name Anguilla Airways was retained This is the plane which seemed to have started a chain of circumstances leading up to the present action. The 4 seater plane Obtained through Jeremiah Gumbs' financial assistance which was to be traded in was left by Clayton with Aviation Associates. To effect the change in obtaining an air taxi etc. certificate in the name of McClees in respect of Anguilla Airways it was necessary under F.A.A. regulations to surrender the previous certificates held by Jeremiah Gumbs, and Clayton was able to achieve this change because he had a power of attorney from Jeremiah Gumbs to act on his behalf in matters connected with Anguilla Airways. The power of attorney was not produced but it was conceded by both parties that such a power had existed. Clayton had written to Jeremiah Gumbs on 4th November 1966, Exhibit 32, informing him of what had transpired. This action of Clayton in leaving the plane With Aviation Associates and using his powers under..: he power of attorney-to aid in obtaining a new certificate in the name of McClees is one of the bones of contention in this case as well as his propriety in so acting. In consequence of the acquisition of this larger plane operating under the style Anguilla Airways and with McClees as holder of the certificate necessary for that purpose, there occurred a marked change in. the attitudes and relationships between McClees, Clayton and Jeremiah Gumbs, and the whole Lloyd family including the two-Lloyd brothers, both medical doctors practicing in St. Kitts.

5 The plane which Clayton had left with Aviation Associates for which Jeremiah' Gumbs was responsible financially to the Bank and liable under F.A.A. regulations for compliance with the conditions of the certificate is referred to in the last paragraph of the letter in the Beacon and alleged to be abandoned by Clayton and from which he is alleged to have removed certain life saving equipment. Clayton's two doctor brothers Sonnie and Frank, who practice in St. Kitts were brought into this dispute. In a letter 20t November 1966, Exhibit 34, from Jeremiah Gumbs to Sonnie he gives Sonnie instructions to go to lawyers in St. Kitts to get them to file a suit against McClees for willfully and deliberately using his money to divide and destroy a family for his own selfish reasons. The letter goes on to get the writer's complaints and grievances against McClees and refers to the plane being abandoned. Sonnie by a letter of the same date to Jeremiah Gumbs advises him to request McClees to leave Rendezvous Hotel immediately. Accordingly Jeremiah Gumbs wrote McClees as follows, Exhibit 4, “Since you insist in inter-f erring with Anguilla Airways I can no longer tolerate your presence at Rendezvous. I am asking you to leave immediately.” Prior to this on 4th November 1966 &flees and Clayton had jointly signed a document, Exhibit 7, purporting to set out their relationship in connection with the operation of Anguilla Airways. It is typed on paper bearing the heading “Anguilla. Airways, Air Taxi and Charter, The Valley, Anguilla BWI” and was filed at the office of the Registrar of the Court. More about this document later.

6 Apparently when Jeremiah Gumbs -became aware of the business relationship between McClees and Clayton he wrote to Aviation Associates: who replied by letter of 8th December 1956, Exhibit 33, setting out the position affecting the purchase of the new plane and the leaving of the other plane at their premises by Clayton. That letter concluded as follows- “Since Mr. Lloyd is not a US citizen, the aircraft is under McClees name.” The expert witness called by the plaintiffs told the Court that by F.A.A. regulation's a certificate' for the operation of an Air Taxi Service out of or into any US Territory, eg., St. Thomas,:Puerto Rico, can only be obtained by a US Citizen or Corporation. This was known to Jeremiah Gumbo. Jeremiah Gumbs thus had further correspondence with Frank Lloyd in which he again expresses his feelings about McClees and tells Frank that McClees is now the owner of the Airljne and adds “don't you worry, I'll fix him.” In another letter Of 17th December 1966, Exhibit 37, from Jeremiah Gumbs to Sonnie, apparently in reply to Sonnie's of 26th November,' he expresses his hostility towards McClees by stating “McClees bought the plane outright to create trouble.” This letter ends rather pathetically on the following, note, “I was wrong to - initiate the whole movement, because I am selfish.”

7 Certain statements appeared in the letter, Exhibit 34, from Jeremiah Gumbs to Sonnie and in Exhibit 36, from Jeremiah Gumbo. to Frank which counsel for the plaintiffs have not referred to and I have no desire to make any reference to those statements in any way except to say that these letters came into the possession of Clayton having been sent by his brothers to him and may well have supplied the reasons why Clayton severed all business relations with his uncle and may also-explain his fixed intention not to be associated with him in any future venture.- Hence his refusal to Consider any 50/50 basis as Jeremiah Gumbs intimated on several occasions.

8 So far we have seen how plaintiffs and Jeremiah Gumbs intimate one descended to one 1966. Let me now turn to the relationship between which had started in 1965 as an inmate one descended to one of avowed hostility in December events of 1967.

9 On 20th January 1967 Jeremiah Gumbs demanded payment from McClees for the use of the name Anguilla Airways and other facilities connected with it. McClees paid him $10,920 US. This sun was arrived at on an hourly basis at $65.00 US per hour for the use of the aircraft. The number of hours was calculated by McClees at 171. McClees gave Jeremiah Gumbs a cheque for the amount. About this payment McClees maintains that he paid as a result of threats by Jeremiah Gumbs to have him arrested and having regard to the then prevailing unsettled political conditions in Anguilla he felt that as a stranger it would be better to pay. Exhibit 12 is the acknowledgement of this payment by Jeremiah Gumbs, who denies any use of-sudia threats. This payment was witnessed by Phillip Lloyd the father of Clayton and brother in law to Jeremiah Gumbs but in his evidence he said he didn't know much about the-discussion or the cheque.

10 On 24th January 1967 Jeremiah Gumbs wrote McClees about reinstating Anguilla Airways in its original form.:This refers to some incident about the, name being painted on the plane and office; He also invites him to-discuss the building of the bungalow- and the alleged removal of certain things by McClees from its McClees replied as per Exhibit 14 stating:his reasons for being unable to cone to discuss the bungal6W etc. He denied the removal of any furniture-or -fittings and told. Jeremiah Gumbs that if he persisted in his harassment he would turn the matter over to his attorney and concluded ominously that “if this' has to be done, I can assure you that it will result in a LONG, NASTY and COSTLY situation to all concerned.” The Underlining is his. Jeremiah Gumbs replied by letter of 12t February 1967 Exhibit 15 repeating his allegation about continuing to use the facilities of Anguilla Airways Without permission and advising McClees to replace the Air Taxi Licence (he probably means Air Taxi Certificate) and repaint the Letters Anguilla Airways on the office building at once. He went on to dare McClees to turn the matters over to his lawyer and threatened he would ask for a police investigation of the...