Jamaica Gleaner– Attorneys representing Adam Stewart have welcomed last week’s Supreme Court ruling striking out an application by executors of the estate of Gordon ‘Butch’ Stewart, arguing that the decision removes a key obstacle to the transfer of shares to the hotelier’s son.
“This judgment is significant. Butch Stewart died over five years ago. In his uncontested will, he left a majority interest in the ATL Group to Adam,” said Conrad George, partner at Hart Muirhead Fatta.
“Despite having obtained probate, the executors have refused to transfer the shares to Adam. Their main excuse has been the alleged need to first use a foreign firm of accountants to carry out a red-flag audit of the ATL Group,” George added.
The executors, Trevor Patterson, Cheryl Hamersmith-Stewart, Elizabeth ‘Betty-Joe’ Desnoes and Hugh Martin Veira, had gone to court seeking an order to facilitate such an audit, citing allegations against Adam Stewart in relation to Gorstew Limited, Appliance Traders Limited and their subsidiaries.
However, Justice Brown Beckford struck out the claim approximately two weeks ago, with the written judgment released yesterday.
George said the decision represents “a step towards compelling them to comply with their duties as executors and transfer the shares in accordance with Mr Stewart’s will”.
CRITICAL DEVELOPMENT
The ruling is being viewed as a critical development in the long-running dispute over the administration of the late tourism pioneer’s estate, particularly as it relates to control of the ATL Group – a central pillar of the Stewart family’s business empire.
In a further development, retired Court of Appeal Judge Justice Hilary Phillips has recently been appointed by the court as an additional executor.
George noted that she was not a party to the proceedings, and expressed hope that her presence would “contribute measure and judgment to the executor body”.
In the meantime, attorneys representing the executors, including Michael Hylton of Hylton Powell, filed an appeal against the judgment yesterday.
The appeal contends that Justice Brown Beckford erred in law by finding the Trusts Act inapplicable and that the executors lacked standing to bring the claim.
The appellants argue that the judge failed to recognise that under Section 4(1) of the act, a trust exists where a person holds property for the benefit of another – and that when Butch Stewart’s shares vested in the executors upon his death, they automatically became trust property.
The appeal further argues that all characteristics of trust property as defined by the act have been satisfied in this case.
The executors are also challenging the judge’s reliance on the case of Heather Montague v GM and Associates, arguing that that decision predated the Trusts Act and therefore did not consider its provisions and applicability.
The case has been closely watched within Jamaica’s corporate and tourism sectors, given its potential implications for governance and succession within one of the country’s most influential business groups.
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