Pakistan Steel Mills (PSM) Board of Directors (BoD) has reportedly disallowed the management to opt for an out-of-court settlement with M/s Fomento as a substantial amount has been spent on M/s McCarthy Tetrault LLP (a Canadian law firm), well informed sources in Ministry of Industries and Production told Business Recorder. The Board was informed that PEO (Production) M/s McCarthy Tetrault LLP in an email dated February 10, 2015 revealed that the Supreme Court of Canada has dismissed PSM's application for leave to appeal.
There is no further avenue of appeal available, and the British Columbia Court of Appeal decision stands. M/s Fomento is now entitled to proceed with its claim for expenses arising from the injunction. Fomento is also entitled to its legal costs. PSM does not know the precise value of their legal costs, but it would be approximately $150,000.
According to sources, M/s Fomento has offered to accept the funds in court as full payment for all remaining claims in order to bring this to closure as per the following terms of his offer: M/s McCarthy Tetrault LLP, PSM Canadian Lawyer has opined that this would be a very good deal for Pakistan Steel and we recommend proceeding that way if possible. PSM maintained that the matter was placed before the BoD to seek permission to refer the case to MOI&P for obtaining approval/consent of Ministry of Law that PSM should accept the offer of M/s. Fomento or otherwise. After detailed discussions in the meeting held on April 30, 2015, the BoD allowed PSM to send the case to MOI&P for obtaining approval from Ministry of Law that PSM should accept the offer of M/s Fomento or otherwise.
The sources further stated that Ministry of Law stated that PSM must examine the proposal from policy perspective and obtain a legal advice of their foreign counsel and upon satisfaction and obtaining appropriate approvals may proceed, accordingly, as in its considered view this is the only viable course of action. Ministry of Law, Justice and Human Right states that the terms of the offer have been examined and keeping in view the facts that no legal remedy is available to PSM they may consider to accept the offer as the legal cost incurred by M/s. Fomento while pursuing this matter before the Supreme Court of Canada can be saved. However the counsel asked for payment of CAN$5,000/- as his professional fee.
The court of appeal for British Columbia allowed the appeal of Sociedade-De-Fomento Industrial Private Limited (SFI) and dismissed PSM's claim for damages through its Judgement on June 2, 2014 which was forwarded to Ministry of Law through MOI&P seeking their expert opinion whether PSM should file an appeal against the said judgement before the Supreme Court of Canada or otherwise.
In response to MOI&P letter Ministry of Lawendered their Opinion as follows:
(i) "That the PSM may file Leave to Appeal in the Supreme Court of Canada, ii) approves the appointment of the same Counsel ie M/s McCarthy Tetrault llp, for the Supreme Court of Canada and iii) approves the payments of counsel's fee as mentioned in the above referred letter. The total fee shall be paid by the PSM".
The fee of the nominated counsel M/s McCarthy Tetrault LLP, Canadian Lawyer, quoted in their email of June 10, 2014 was also approved as follows:- (i) separate retainer will be set up for the application for leave to appeal with a Can $30000 fee in advance; (ii) if leave to appeal is granted, their lawyer's fee for conducting the appeal itself in Can $50,000; and (iii) with respect to the assessment of Fomento's damages claim that will proceed by way of a hearing in BC Supreme Court, likely before a Registrar and the issue for discussion will be whether the various heads of damages were reasonable incurred and to this effect their a lump sum fee estimate for that hearing is CAN $25,000/- After detailed deliberations on the basis of placed material by management, the Board advised PSM management that an out-of-court settlement is neither suitable nor advisable for a Public Sector Organisation. PSM should exhaust legal remedy available.
Comments
Comments are closed.