Adam Stewart's Lawyers Hail Court Ruling Blocking ATL Group Audit Bid

WESTERN BUREAU: Lawyers acting for Adam Stewart have applauded a recent Supreme Court ruling that threw out an application brought by the executors of Gordon 'Butch' Stewart's estate, describing the outcome as the removal of a major hurdle standing between the hotelier's son and the shares willed to him.

"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, a partner at Hart Muirhead Fatta. He added: "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."

The executors — Trevor Patterson, Cheryl Hamersmith-Stewart, Elizabeth 'Betty-Joe' Desnoes and Hugh Martin Veira — had asked the court to grant an order allowing such an audit to proceed, pointing to allegations levelled at Adam Stewart concerning Gorstew Limited, Appliance Traders Limited and their subsidiaries.

Justice Brown Beckford, however, struck out the claim roughly two weeks ago, and the written judgment was made public yesterday. George said the ruling 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

Legal observers regard the decision as a turning point in the protracted wrangle over the administration of the late tourism pioneer's estate, especially as it concerns who ultimately controls the ATL Group — a cornerstone of the Stewart family's commercial holdings.

Adding another layer to the matter, retired Court of Appeal Judge Justice Hilary Phillips has been named by the court as an additional executor. George noted that Justice Phillips was not involved in the proceedings, and said he hoped her appointment would "contribute measure and judgment to the executor body".

Meanwhile, the executors' legal team, which includes Michael Hylton of Hylton Powell, lodged an appeal against the judgment yesterday. They contend that Justice Brown Beckford was wrong in law to find that the Trusts Act did not apply and to rule that the executors had no standing to bring the claim.

The appellants submit that under Section 4(1) of the Trusts Act, a trust arises whenever one person holds property on behalf of another, and they argue that the moment Butch Stewart's shares vested in the executors at his death, those shares automatically took on the character of trust property. They further maintain that every feature of trust property set out in the act has been satisfied in the present matter.

The executors are additionally taking issue with the judge's reliance on Heather Montague v GM and Associates, asserting that the case was decided before the Trusts Act came into force and therefore could not have addressed its provisions or relevance.

The dispute has drawn close attention from Jamaica's corporate and tourism circles, given the possible ramifications for governance and succession at one of the nation's most influential business empires.