The hearing of the petition to have Indies Suites Ltd. put into official liquidation continued into its third day Tuesday.
The petition to wind up the company, which had been put into provisional liquidation in June, was made by two Indies Suites time share owners, also known as club members, and supported by 177 other club members.
Queen’s Counsel Ramon Alberga, instructed by Attorney Waide DaCosta on behalf of Brac Construction Ltd., the sole shareholder of Indies Suites Ltd., is vigorously resisting the petition on several grounds.
One basis of Mr. Alberga’s argument was that the club members had no standing to bring the petition to liquidate because they had never received a judgement for their claim, and had even made a statutory demand for their claim.
He also suggested that Indies Suites did not have quantified claims, so their damages remained unliquidated.
Mr. Alberga pointed out that Cayman law differs from English law when it comes to contingent or perspective creditors.
Representing the petitioners, Attorney Alan Turner argued the damages to the creditors became quantifiable, and thus liquidated, from the time Indies Suites was sold.
‘Their contracts were fundamentally frustrated,’ he said.
Mr. Turner said all 177 creditors could go and get judgements and come back to court three weeks later.
‘But there’s no need to obtain a judgement for something that is obvious,’ he said.
Mr. Turner noted that Mr. Alberga’s assertion did have some merit.
‘I don’t argue that my learned friend’s argument is correct,’ he said. ‘But his argument is 150 years old and things have moved on in Cayman.
‘While his argument has a certain attraction from a technical perspective, I would urge the court to take a more practical approach.’
Chief Justice Smellie accepted the argument that Cayman Islands laws do not allow for contingent creditors, however he did not accept the argument that Indies Suites club members were in fact contingent creditors.
He therefore ruled the petitioners did have standing to bring the action.