Krygger (Peter), Garrie Don and Bradley Johns v F1 Investments Inc., Steve Palmer, Paul Atkinson, Christopher Kelly and Patrice Palmer

• Jurisdiction: Jamaica
• Court: Supreme Court (Jamaica)
• Judge: SYKES J.
• Judgment Date: 22 January 2010
• Judgment citation (vLex): [2010] 1 JJC 2201
• Date: 22 January 2010
• Docket Number: CLAIM NO. 2009 HCV 3034

IN THE SUPREME COURT OF JUDICATURE OF JAMAICA

CLAIM NO. 2009 HCV 3034

BETWEEN

PETER KRYGGER

FIRST CLAIMANT

AND

GARRIE DON

SECOND CLAIMANT

AND

BRADLEY JOHNS

THIRD CLAIMANT

AND

F1 INVESTMENTS INC.

FIRST DEFENDANT

AND

STEVE PALMER

SECOND DEFENDANT

AND

PAUL ATKINSON

THIRD DEFENDANT

AND

CHRISTOPHER KELLY

FOURTH DEFENDANT

AND

PATRICE PALMER

FIFTH DEFENDANT

IN CHAMBERS

The Honourable Michael Hylton O.J., Q.C., Nicole Foster Pusey, Kevin Powell for the claimants

Franz Jobson and Raymond Clough for all the defendants

WITHOUT NOTICE FREEZING ORDER - WHETHER IT SHOULD CONTINUE UNTIL TRIAL - INTER PARTES HEARING - RISK OF DISSIPATION OF ASSETS - ABSENCE OF EVIDENCE FROM THE DEFENDANT IN THE FACE OF DETAILED ALLEGATIONS

FREEZING ORDERS - Inter partes hearing - "Without notice" Freezing Order - Whether it should continue until trial - Risk of dissipation of assets - Absence of evidence from the defendant in the face of detailed allegations

SYKES J

1 On June 16, 2009, the claimants applied for a without notice freezing order against all the defendants. The order was granted. In addition to restraining them from disposing of assets up to a value of US$8,145,441.20 (the value of the claim), the defendants were required to disclose all their assets. The usual exceptions and permissions in a properly drafted freezing order were included in the order.

2 On September 29, 2009, the matter came before me on an inter partes hearing for a determination of whether the order should continue until trial. I extended the order with a few variations which are reflected in the formal order. These are the reasons for my decision.

The claim

3 F1 Investments, the first defendant, is a company incorporated in Panama and carrying on business in Jamaica, c/o Steve Palmer, 1A Upper Melwood Avenue, Kingston 8. Mr. Steve Palmer, the second defendant, is a businessman. Mr. Paul Atkinson, the third defendant, is a Director of Flight Operations for Air Jamaica. Mr. Christopher Kelly, the fourth defendant, is an airline pilot. Mrs. Patrice Palmer, the fifth defendant, is a financial advisor and wife of Mr. Steve Palmer.

4 The claimants are all pilots who now live and work In the United Arab Emirates. They sue on behalf of themselves and 83 other persons.

5 This is another apparently failed investment scheme that mushroomed in Jamaica within the last half a decade. It was unregistered and therefore unregulated. It was indeed high risk: the prospect of high returns coupled with the very real risk of total loss. It appears, quite literally, that all has been lost. The defendants, according to the claimants, are unable to account for US$8,135,441.20 invested by the claimants with FI Investments Incorporated ("F1 Investments").

6 The particulars of claim allege that the second to the fifth defendants purported to carry on the business of foreign currency trading using money deposited by members of the public, including the claimants. It also alleged that the second to the fifth defendants carried business through F1 Investments and F1 Holdings Company Limited ("F1 Holdings"), the latter being a company incorporated in Jamaica, with offices at 25 Burlington Avenue, Kingston 10, in the parish of St. Andrew.

7 In March of 2009, F1 Holdings was struck off the Register of Companies. This company had Mr. Palmer, Miss Palmer and Mr. Kelly as directors.

8 The claimants say that at all material times F1 Investments was either under the control, management and direction of the second to the fifth defendants or that the F1 Investments was simply a device through which the second to the fifth defendants carried on the...