Bauxite Company pays US$250,000 to dredging company

Mining dispute

The Caribbean Court of Justice (CCJ) on Monday issued an order settling a matter valued at nearly US$1 million between Bauxite Company of Guyana Inc and Haresh Narine Sugrim.
On 19th April 2018, the CCJ heard the case, during which the judges urged the parties to make every effort to come to an agreement. A mere four weeks later, the Court was informed that both parties had reached an agreement, wherein the Bauxite Company would pay the sum of US$250,000 to Sugrim. A consent order, which sets down formally what each side has agreed to, was issued by the CCJ on Monday.
The appellant, the Bauxite Company of Guyana, had entered into an agreement with Sugrim to perform dredging works at Aroiama and Kwakwani, in the Berbice River, to clear approximately 15,000 cubic yards of sediment from the river. However, while the agreement prescribed a specific method, known as “barge displacement calibration”, to measure the amount of material that was dredged and removed from the river, it did not state whose responsibility it was to calibrate the barges. Sugrim subsequently submitted invoices which totalled US$992,123 based on 105,545 cubic yards of sediment being dredged and removed from the river. Both the sum claimed in the invoices and the amount of sediment dredged were rejected by the Bauxite Company.
The High Court of Guyana ruled in favour of Sugrim, who was granted the amount claimed in the invoices. However, the Court of Appeal, while agreeing with the general approach employed by the High Court in assessing the amount due to Sugrim, reduced this amount by 20%. Both parties appealed to the CCJ, as they were dissatisfied with the ruling of the Court of Appeal.
During the CCJ hearing of the matter, members of the Bench repeatedly expressed the view that the nature of the dispute readily lent itself to mediation. The Court observed that it was virtually impossible to arrive at a sum with any degree of mathematical certainty. It advised the parties that should a formal judgment be issued in the case, it would more than likely be met with great disfavour by one side. The Court gave an undertaking to reserve delivery of its judgment for six weeks from the date of the hearing, to provide the parties with sufficient opportunity to explore mediation. It was also agreed that each party would pay its own costs in the proceedings before the CCJ, as well as in the proceedings in the courts below.
The Court has expressed deep appreciation to the parties for what it deems a mature and sensible approach to the resolution of this matter.
The Bauxite Company of Guyana was represented by Edward A. Luckhoo, SC, and Andrew MF Pollard, SC. Sugrim was represented by Chandrapratesh V Satram.