ECCB 2016/2017 Annual Report

152

ECCB ANNUAL REPORT 2016/2017

Eastern Caribbean Central Bank Notes to the Financial Statements March 31, 2017 (expressed in Eastern Caribbean dollars)

EASTERN CARIBBEAN CENTRAL BANK NOTES TO THE FINANCIAL STATEMENTS

(expressed in Eastern Caribbean dollars)

March 31, 2017

23. Contingencies and commitments ...continued Pending litigation ...continued

The Applicant appealed the decision of the High Court. On the hearing before the Court of Appeal on 8 December 2016, the Court ordered that the matter be remitted to the High Court with directions that the Attorney General be joined as a party and that a timetable be fixed by the High Court for the expeditious hearing of the matter. (4) Claim No. AXAHCV2016/0051 between: Satay Limited et al (Claimants) v Martin Dinning, Hudson Carr, Shawn Williams, Robert Miller and Eastern Caribbean Central Bank (Defendants). By claim filed on 28 June 2016 the Claimants claim against the Defendants for breach of fiduciary duty the sum of US$13,028,906.17. By Notice of Application dated 12 August 2016, the 1 st , 2 nd , 3 rd and 5 th Defendants applied to the Court for a declaration that the Court has no jurisdiction to try the claim as filed. The Defendants’ application contestin g the court’s jurisdiction was heard on 13 October 2016 and the Court gave directions for the filing of written submissions by both sides. Written submissions have been filed by both sides. On 22 February 2017, the Court delivered its decision on the preliminary issue in favour of the Claimants. The Defendants filed application for leave to appeal that decision which was granted on 11 April 2017. (5) Case No. 16-01279-MG Between: National Bank of Anguilla (Private Banking & Trust) Ltd (the Plaintiff) v. National Bank of Anguilla Ltd (NBA), National Commercial Bank of Anguilla Ltd (NCBA) And Eastern Caribbean Central Bank (ECCB) (hereinafter collectively ‘the Defendants’). The Plaintiff filed complaint on 16 December 2016 before the United States Bankruptcy Court Southern District of New York against the Defendants alleging breach of fiduciary duty and gross negligence and seeking judgment to, inter alia: (a) avoid transfers of net new money in the amount of US$9.15m to NBA and other transfers to the NCBA and ECCB as actual or constructively fraudulent transfers; (c) avoid and recover NBA’s transfers of its funds and assets to NCBA and net payment of US$13,837,233.30 to ECCB; and (d) damages for breach of fiduciary duty and gross negligence by the ECCB. On 27 February 2017, the Eastern Caribbean Central Bank filed a motion to dismiss on the basis of lack of subject matter jurisdiction, personal jurisdiction and forum non conveniens. On 20 March 2017, the Plaintiff filed an amended complaint. (b) recover the value of avoidable transfers from the Defendants;