After two days of arguments, the case of Sagis versus Krem Radio concluded this afternoon in the Court of Appeal and the justices have reserved judgement. Sagis, which is an affiliate of BB Holdings, wants the court to award it 10% ownership in Krem in return for $100,000 which Sagis loaned the station in June of 1994. As part of that loan agreement, Krem’s directors agreed to sign over 50,000 shares in Krem Radio to Sagis.
It never happened and now Sagis wants to be recognized as a shareholder in Krem. The Chief Justice ruled against Sagis last may and instead awarded them the $25,000 plus interest. But Sagis refused and appealed and brought back Queen’s Counsel Vincent Nelson as its lead lawyer. The case began yesterday and arguments wrapped up at three this afternoon. As mentioned the justices have reserved judgement but following this afternoon’s session – the lead lawyer for Krem Michael Young discussed the case with us.
Michael Young, Attorney for Krem Radio
“We did our research, we put forward our arguments, we have confidence in our arguments. Ultimately of course it is for the court, the Court of Appeal to determine what the position will be. So we feel good.”
Keith Swift,
Mr. Nelson mentioned that at the end of it, Krem got the money, they refused to honour the agreement, and they kept the money for 13 years. That to me was the crux of their argument, or at least a summary, what was your response?
Michael Young,
“Our response is that the money was paid in consequence of Evan Hyde signing over his shares to Sagis and then Evan had that money put into the company and in fact as far as Evan Hyde was concerned, it was all that he needed to do. And as I have said before, it was one situation then and it is a different situation now. Evan, once it was actually brought his attention that as a matter of law the transaction was not valid, he offered to pay back the $25,000 in fact plus interest. And if they are saying, which is a part of their case, that this company has always been in financial difficulties then his offer is even more fair than what they could perhaps get from the shares. So all of that shows that this is not about money; there is something else that obviously Sagis wants in relation to Krem.
You’re talking about an investment of $25,000 way back in 1994 and here it is that for instance the legal expenses on the part of Sagis, which is an affiliate of Belize Bank and Belize Holdings, far exceeds that so maybe you need to ask the other side that question about why has things come to this point.”
Keith Swift,
So you don’t think it is about the $25,000?
Michael Young,
“Absolutely, it is simply a case that is clearly not about money.”
Krem is also represented by Senior Counsel Lois Young while Queen’s Counsel Vincent Nelson is assisted by Elson Kaseke. The judgement has been reserved and can be issued at anytime – so we will wait and see.
