ST. GEORGE‘S, Grenada: The Grenada government plans to seek an agreement with Dipcon Engineering Services Ltd who recently won a major court battle in the Privy Council requiring Grenada to pay over $17 million plus interest and costs. The British Law Lords, overturning the January 2002 decision of the Court of Appeal of the OECS, have in effect ordered that the government to pay to Dipcon the sum ordered by Justice Brian Alleyne. A statement from the Ministry of Legal Affairs says the judgment of the Judicial Committee is final and cannot be questioned or disregarded and the government will seek to alleviate the effect of this judgment on the economy of the nation by seeking agreement with Dipcon or, if that fails, by a further Court Order establishing a schedule of payment over a period of several years. The statement added that upon coming into office in 1995, the New National Party government met a contract signed by the previous administration on September 30, 1994, which gave Dipcon, the right to use government's quarry and equipment in return for the payment of a royalty based on sales and an annual rent. By November 1995, Dipcon was in arrears of royalties and rent in excess of EC$ 286,000. The Grenada government is also saying that Dipcon had failed to produce the crushed stone of the quality and quantity required for the paving of the Eastern Main Road Rehabilitation Project. As a result, Grenada was in danger of losing millions of dollars in grant funds allocated for the project by the European Union (EU). After receiving technical and legal advice, the government of Grenada terminated Dipcon's contract, and was then able to complete the project to the satisfaction of the EU. Dipcon filed a claim against government in January 1996 and in December of that year judgment was entered in default of any defence having been filed. The merits of Government's defence have never been tried by any court. It is worthy of note that Mr. Justice Singh, giving judgment in the Court of Appeal, stated that Government had an arguable defence, and this statement was not questioned by the Judicial Committee. The question remains, however, as to why that defence was never filed. Cabinet has instructed the Ministry of Legal Affairs to make an urgent report on the circumstances which led to the judgment in default in 1996. However, the Law Lords indicated in their ruling that "the government was playing fast and loose with the court and its procedures". It continued "time and time again the government sought to frustrate the progress of the proceedings". The government's release confirms that cabinet has also instructed the Ministry of Legal Affairs to set up a Review Panel comprising senior law officers and other public officers, to make regular reports for submission to Cabinet on the status of all legal matters, both potential and actual, which have been or might be brought by or against government or any public officers. In November, 2001, government filed a suit against Dipcon, claiming damages for Dipcon's breach of contract. By order of the Court no further action was taken, pending determination of Dipcon's claim against government. With the appeal to the Judicial Committee now disposed of, the way is open to government to proceed with its lawsuit against Dipcon. Cabinet has instructed the Ministry of Legal Affairs to pursue this matter with all possible vigour. Reprinted from Caribbean Net News caribbeannetnews.com