Antigua and Barbuda’s PM not surprised by latest CCJ BAICO ruling

SOURCE: DominicaNewsOnline: Antigua and Barbuda’s Prime Minister Gaston Browne said that he is not at all surprised by the Caribbean Court of Justice’s recent decision to dismiss an $800 million lawsuit against the government of Trinidad and Tobago, brought by former policyholders of the defunct British American Insurance Company (BAICO).

This case involved policyholders in Antigua and Barbuda and Grenada. It was filed under the court’s original jurisdiction, which allows it to address disputes among member states under the Revised Treaty of Chaguaramas. The case revolved around claims that Trinidad and Tobago’s financial support to certain subsidiaries of CL Financial Limited (the parent company of BAICO) was discriminatory.

Policyholders argued that this bailout, aimed at stabilizing the local financial system, unfairly overlooked BAICO policyholders outside Trinidad and Tobago. Following the collapse of CL Financial in 2009, the Trinidad and Tobago government took decisive action to support its locally registered subsidiaries, including CLICO and BAICO’s operations in Trinidad. However, this assistance did not extend to policyholders in other CARICOM member states, resulting in considerable dissatisfaction.

Chief Justice Adrian Saunders provided a comprehensive judgment addressing the government’s actions, affirming that the financial assistance given to CL Financial and its subsidiaries was consistent with the exceptions outlined in Article 32 of the Revised Treaty of Chaguaramas.

The court recognized these actions as a legitimate exercise of authority aimed at mitigating the economic hardships caused by the collapse, on the local population. In contrast, the policyholders alleged that the Trinidad and Tobago government violated several articles of the Revised Treaty, particularly Articles 36, 37, 38, and 184, which deal with discrimination and consumer protection.

Nevertheless, the court deemed these claims unsubstantiated, concluding that the government’s actions did not breach the treaty’s competition policy and consumer protection provisions.

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