All the time on the news - we tell you about big cases coming out of the Supreme Court, but one that never made the news and slipped completely under the radar is making headlines tonight. It concerns well-known businessman and PUP backer turned candidate Luke Espat. It's what's called a summary judgment - meaning a civil matter in which judgment was entered without a trial. And it's bad news for the man called Lucas Magnus! It finds him personally(!) liable to the Belize Bank for 29.4 million(!) dollars! Now, just a few months ago in August Espat told us very explicitly that he didn't owe the Belize Bank anything. Here's what he said at that time:..
Jules Vasquez
"How can you...you are mentioning IMF reports, you are the reason for non-performing loans at the Belize Bank."
Luke Espat
"Oh yes? And can you always say that I am the reason to that? Why would you say such a thing?"
Jules Vasquez
"Your name is the name on the paper - you have lost the amount of businesses you have lost in the past three years."
Luke Espat
"Why do we try to spin this thing with me and the Belize Bank? I will answer you directly - Mr. Lyndon Giuseppe made a statement on public radio that 'Luke Espat doesn't owe the Belize Bank'. Yes or no?"
Jules Vasquez
"I didn't hear anything..."
Luke Espat
"So please check it - then you come back with that question."
Well, we didn't have to check, apparently the bank was keeping score and they say in their statement of claim that Espat unconditionally and irrevocably guaranteed his companies' debts to the bank, and that he signed a "Guarantee and Postponement of Claim Agreement" in which he personally guaranteed to pay the debts of those companies if they defaulted.
The companies are, Indeco Enterprises for 12.166 million dollars, Belize Crocodile and Reptile Breeders for 11.54 million, Belize Ready Mix concrete for 4.69 million dollars and Indeco enterprises again for 1.02 million dollars.
Espat's attorney was Said Musa and in his submission to the court, he argues that Espat was induced by a misrepresentation of the President of the Bank to sign a guarantee which was a mere formality and did not expose Espat to personal liability. The Bank- represented by Godfrey Smith, says there was no misrepresentation, just a standard bank document to secure loan money advanced.
In the end, Justice Courtney Abel said quote, "every time I tried to follow the events being described by (Espat) in his pleadings, I felt that I was being drawn into an impenetrable labyrinth of circumstances, involving actors and companies which are not joined in these proceedings…and generally matters which can never be pursued in the present proceedings."
Abel found that there was not sufficient defence by Musa and Espat to merit going to trial and that the Bank had a plain and straightforward convincing case. He wasn't so kind about the other side, saying, quote, "(the defendant) mounts a smokescreen...to conceal the fact that he has no real defence." End quote. Abel found that the Belize Bank is free to pursue a claim for payment of the sizeable sum.
Speaking with Said Musa last week, he told us that the judgment will be vigorously appealed, and alluded that some big names in the Bank could be subpoenaed to testify. The 25 page judgment was handed down on October the 18th.
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