The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

The Democratic National Alliance’s (DNA) former leader yesterday accused Adrian Gibson of “costing the Bahamian people an extra $22,500” after the Water & Sewerage Corporation settled the full amount of his law firm’s claim out-of-court.

Branville McCartney told Tribune Business that the embattled MP, who is currently facing a police probe into contracts awarded during his time as the Water & Sewerage Corporation’s executive chairman, had created an unnecessary expense for consumers by refusing to pay his firm due fees for collecting on delinquent accounts.

Confirming that Halsbury Chambers has received the full $62,500 payment, under the terms of an April 11, 2022, “deed of settlement and release” with the state-owned water supplier, he blasted: “That matter has been resolved. Adrian Gibson, together with his attorney, has cost the Bahamian people an extra $22,500.”

The deed, which has been seen by Tribune Business, shows that apart from the the $40,222 claimed by Halsbury Chambers for collections work on the Water & Sewerage Corporation’s behalf, the law firm has also been paid $10,000 in legal costs ordered by Supreme Court justice, Indra Charles, as well as the additional $12,279 legal costs set out in the initial writ it launched over the utility’s non-payment.

Given the change in government, it is not surprising that the Water & Sewerage Corporation has chosen to settle, especially since it had failed to file a defence to Halsbury Chambers’ claim. “It is a matter that should not have gone to court in the first place,” Mr McCartney said, noting that it stemmed from Mr Gibson’s desire to launch a defamation action against a bidder who lost out on a Water & Sewerage Corporation contract.

“As I indicated before, it really went to court because of Adrian Gibson’s personal agenda in us not agreeing that we use Water & Sewerage Corporation funds to pay for his private legal fees,” the ex-DNA leader added. “He wanted the Water & Sewerage Corporation to pay, and when we told him we cannot operate like that because defamation is private in nature, it doesn’t work like that, he took the files away from us and refused to pay our fees.

“Notwithstanding us trying to settle it, he hired Ferron Bethell at Harry B Sands & Lobosky to put up all sorts of technical legalities to avoid paying.” Mr McCartney said Mr Gibson had previously indicated that Halsbury Chambers collected “millions” in outstanding customer payments owed to the Water & Sewerage Corporation, although the former executive chairman has denied doing so while rejecting the law firm’s claim.

“Many times we were able to negotiate settlement with the customer,” Mr McCartney added. “We were able to do that, some being hotels and other corporations in the country, together with some big name people. We were able to call them up and speak prior to bringing any claim. We were able to get results without going to court. Some we did have to bring to court to get judgment and settlement with the Corporation.”

Justice Charles, in granting the appeal by Mr McCartney and Halsbury Chambers and awarding $10,000 in legal costs, also lifted the “stay” that had prevented their claim from progressing until they provided proof that the law firm was indeed a partnership. “On or about July 2019, Mr Gibson allegedly requested Halsbury to institute defamatory proceedings against one Gregory Miller, president of Apex Underground and Utilities Company,” she said, tracing the dispute’s origins 

“Pursuant to Mr Gibson’s request, a demand letter was issued and served on Mr Miller requesting a public apology and retraction of statements made in the media about Mr Gibson. Mr Miller was given seven days to comply. Mr Miller did not respond to the demand letter. Halsbury alleged that Mr Gibson insisted that a defamation action be instituted against Mr Miller, and that the legal fees relative thereto be paid by Water & Sewerage and not by him personally.”

Justice Charles said that when Halsbury Chambers informed Mr Gibson he would have to foot the legal bill, and not Water & Sewerage, “he stopped all communication and wilfully refused and/or neglected to pay legal fees regarding the collection of delinquent accounts to Halsbury”.

Mr McCartney and his firm alleged that former Water & Sewerage general manager, Elwood Donaldson, agreed that fees were owed to them and would be paid in two installments. One payment was made in February 2020, and another $20,000 that September, which the utility said represented settlement of all sums owed. Halsbury Chambers denied this, but its demand for the remaining $40,221 said to still be outstanding was not met.

The law firm initiated legal action. While Water & Sewerage did not file a defence, it moved to try and strike out the action and also asserted that Halsbury Chambers was not a partnership at the time the lawsuit was filed. It thus argued that Mr McCartney and his company “lacked the capacity to commence the action” and demanded that the matter be halted until this was addressed - something the Supreme Court deputy registrar agreed to.

Overturning that verdict, Justice Charles ruled: “It will be difficult to see how Water & Sewerage could escape liability having engaged Halsbury in the collection of monies from its delinquent customers. Water & Sewerage was a party to the contract and intended to create legal relations with Halsbury....

“To my mind, the issue of whether or not Halsbury was a partnership at the material time is not relevant to the crux of the action since Water & Sewerage contracted with Halsbury.”