MovieTowne obtains injunction against landlord

News

Just

A High Court judge late last night issued an interim injunction restraining the Port of Spain Infrastructure Development Company (POSINCO) from communicating with tenants of the MovieTowne multiplex, entertainment and shopping centre in Invaders Bay, Port of Spain.

Judge Eleanor Donaldson-Honeywell granted the interim injunction on the evening of August 25, pending the hearing and decision of the Trinbago Commercial Development Co Ltd (TCDC) action.

A hearing is scheduled for August 26 after the suit is served on POSINCO, the property manager of the Port Authority of TT (PATT).

TCDC lawyers approached the court seeking an injunction after POSINCO took control of MovieTowne’s office and banquet hall on August 23.

The TCDC’s claim is that US$5.3 million was paid unlawfully/erroneously under duress/treatment/coercion and the court should find this and order POSINCO to repay the amount as reparation.

Several further declarations are being sought in relation to the Invaders Bay lease. The TCDC is represented by Deborah Peake, SC, Ravi Heffes-Doon and Andre Rudder. The company is also seeking a further injunction to prevent POSINCO from taking possession of the 9.94 acres of land it owns in Invaders Bay.

In support of the motion – which was heard without POSINCO being heard – TCDC Director Hayden John Gadsby said the $10,904,121.23 POSINCO claimed as rent owed was invalid and much lower than PATT’s claim. He said PATT’s lawyers agreed on August 22 to resolve the rent issue in court rather than through arbitration as required by the lease. He said there was an admission of a dispute over the rent owed, yet they took possession of part of the premises on August 23.

Gadsby said the PATT had written to TCDC tenants and asked them to sign an agreement to enter into a sublease arrangement. He cited the contents of a report on the amount of rent, but said it was “irrationally high.”

He said a proper review must be carried out but acknowledged that TCDC was bound by the agreed rent of $4.80 per square foot, a sum agreed in 2013. He also said when the land was first leased, it was covered by bushland and was prone to water retention as it was mangrove land. He said the report had already assessed fully developed land.

Gadsby said the PATT threatened to take over the premises on August 2, based on figures of $7.85 per square foot or $3.4 million per year given in the report. He also said “spurred on by demands and threats” and under the false assumption that the rent report was binding, TCDC made three payments of $2.3 million and $2.8 million in 2020 and $123,906 in 2021. He gave an overview of the discussions with the POSINCO, which included the appointment of a retired appellate judge as mediator in the rent dispute. He also gave an account of the “takeover” on Friday.

“In the current economic climate, consumer spending has declined. The commercial challenges of running a business have increased due to the decline in energy revenues as a result of tightening gas supplies and gas prices.

“This has had a domino effect on the economy. The port’s arrogant and tyrannical behavior has created considerable uncertainty around the facility, which will likely cause many to reconsider whether they want to continue to be tenants…”

In an August 23 press release, the TCDC said it had offered to “settle all outstanding rent amounts that are not in dispute and attempted to pay these amounts by check. The check was returned despite ongoing discussions to resolve all matters, including the disputed amounts.”

“PATT and POSINCO then attempted to illegally and unlawfully enter through their private agents. The actions of POSINCO and PATT have been described by experienced outside legal counsel as unjustified and illegal actions. They will shortly be taking legal action against PATT and POSINCO, including an injunction, to ensure redress for TCDC and protection of its tenants and employees.”

TCDC assured its guests that the MovieTowne complex remains open and its team will spare no effort to ensure their safety and maintain and enhance the first-class level of service that families and customers have come to expect and deserve.

POSINCO stated that it exercised its right of re-entry and took possession of the premises leased to TCDC, also known as MovieTowne.

“This re-entry was carried out due to violations of the terms of the existing lease agreement between POSINCO and TCDC.