The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

Attorneys for ZNS have slammed the "premature" effort to enforce a $542,000 summary judgment bid against the state-owned broadcaster over a satellite contract dispute.

Dennis Tracey, an attorney with Hogan Lovells, the law firm that traditionally represents the government's US and international interests, argued that Centrex Communications Corporation should not be allowed to proceed given its four-and-a-half month silence over the case.

Centrex is accusing ZNS of walking away two years' early from its agreement to lease satellite capacity, but had not attempted to move its lawsuit forward after the Broadcasting Corporation of The Bahamas (BCB) succeeded in early April 2019 in switching the matter from the New York State Supreme Court to the southern New York federal court.

Then, in a September 12 letter, the US company requested a conference before Judge Nelson Roman prior to filing its motion for a summary judgment - an effort that ZNS and its attorneys are now opposing.

"BCB opposes Centrex's planned motion and the need for a pre-motion conference as premature given the lack of litigation activity in this case since its filing," Mr Tracey told the court on Monday.

Noting that Centrex had done virtually nothing to pursue the matter since its transfer to federal court, Mr Tracey added: "Since then, BCB has received no communications of any kind from Centrex. No counsel even appeared for Centrex until four weeks ago, on August 16, 2019, when Mr Sklarin [its attorney] filed a notice of appearance stating he was appearing on behalf of Centrex.

"Further, while BCB had requested that Centrex' original counsel, Jeremy Havens, provide documents on April 3, 2019, including documents relating the basis for Centrex' claim and to actions taken by Centrex to mitigate any damages, Centrex did not respond or provide any materials.

"Since no disclosures have been made and no discovery has taken place, it is premature for Centrex to file a motion for summary judgment."

Documents obtained by Tribune Business reveal that ZNS' relationship with Centrex began under the last Ingraham administration when it agreed to lease satellite capacity from the US firm for transmission of its television programming.

The deal, signed on ZNS' behalf by then-general manager Edwin Lightbourn, featured a Master Service Agreement (MSA) that was accompanied by a Service Order setting out specifics of the agreement such as monthly rate, satellite and transponder bandwidth, and duration.

The initial deal saw ZNS pay $30,920 per month, or close to $372,000 per annum, for a one-year deal. After the Christie government took office in May 2012, Centrex alleged that the lease agreement was renewed for three years at a lesser rate of $26,400 per month.

ZNS then opted for a longer term five-year deal at a lower monthly rental rate, agreeing that it be retroactive to January 1, 2016, and last until December 31, 2020. The agreement was signed by Mr Lightbourn's successor, Diana Swann.

However, ZNS management, "citing budget cuts", sought to exit the contract on November 30, 2018, but Centrex is refusing to release the loss-making broadcaster from its alleged obligation to pay it $22,600 per month until the deal ends on December 31, 2020.

"On September 3, 2018, the current general manager of the Broadcasting Corporation of The Bahamas, Kayleaser Deveaux-Isaacs, sent an e-mail to Centrex with a letter dated August 31, 2018, advising Centrex that BCB intended to end its contract for satellite services 'effective November 30, 2018', citing budget cuts," Centrex's initial claim alleges.

Centrex's lawsuit makes clear why it may be especially eager to pursue its claim. For it reveals that it is a 'middle man' or broker for ZNS, as it actually leases the latter's satellite capacity on its behalf from another company, New Skies Satellites BV.

Centrex itself is locked into the lease deal with New Skies until December 31, 2020, making it imperative for the New York company to obtain payment from ZNS otherwise it will be forced to cough up itself.