In an unprecedented move, a local attorney-at-law in Grenada has filed a lawsuit against another barrister in the fall-out between Levera Resort Development Limited (LRDL) and the Grenada Citizenship Development Limited (GCDL) over the 256 acre property in the north of the island.
Former Attorney General, Jimmy Bristol, acting on behalf of GCDL), has taken legal action against his colleague, Dickon Mitchell along with LRDL in a multi-million dollar lawsuit filed in the Supreme Court Registry in Grenada just over a month ago.
Bristol has accused Mitchell of acting at one time as legal counsel for both parties when they hammered out an agreement in 2016 for the development of Levera under Grenada’s passport selling scheme known as Citizenship By Investment (CBI).
GCDL is suing both LRDL and Mitchell for US$ 19.5 million dollars in compensation after it was kicked out of the property that has now been sold to a Chinese billionaire investor for US$35 million.
American brother Robert and Randall Oveson from Utah are the principal figures in GCDL while the main players in Levera Resort are Lance Aux Epines businessman, Lyden Ramdhanny and British investor Paul Taylor whose wife was a born Grenadian.
Bristol is pointing an accusing finger at Mitchell of wrongfully advising his clients on their ability to legally use the CBI Project Approval granted in 2015 to LRDL to market and sell Grenadian passports.
Mitchell who has written to the Oveson brothers ordering them to remove themselves from Levera, is denying the allegation.
As a public service, THE NEW TODAY reproduces in full the August 1, 2019 letter sent by Bristol to Mitchell on the Levera issue:
PERSONAL PRIVATE & CONFIDENTIAL
Mr. Dickon Mitchell
Mitchell & Co.
RE: Sale and Purchase Agreement dated 18th March 2016 (the “SPA”) between Levera Resort Development Limited (“LRDL) and Grenada Citizenship Development Limited (“GCDL”).
We act on behalf of GCDL and are instructed as set out hereunder.
On the 11 February, 2015, LRDL obtained approval (“the CBI Project Approval”) pursuant to Section 11 of the Grenada Citizenship by Investment Act (“the Act”) for a project (“the Project”) located on the property (“the Property”) the subject matter of the SPA referred to below and in respect of which LRDL received the requisite planning permission and certain tax concessions from the Government of Grenada.
During negotiations, and in order to induce GCDL to enter into the SPA, LRDL fraudulently represented to GCDL that it could legally permit GCDL to use the CBI Project Approval and which representation was embodied in Clause 1.5 of the SPA and amounted to continuing representation and/or warranty.
Induced by and acting in reliance upon the said representation, GCDL entered into the SPA and paid monies contractually due thereunder, was let into possession of the Property by LRDL, and expended sums on the Project and operated the Project under the CBI Project Approval.
Several citizenship applications were approved resulting in successful applicants (“Applicants”) being entitled to proprietary rights in the Property but in breach of the SPA LRDL failed to convey such parts of the Property to give effect to those rights.
GCDL discovered that the said representation was false when it received a letter dated 17th April, 2019 from Citizenship by Investment Committee (“the CBI Committee”) as established under the Act, informing it that the CBI Project Approval was not transferred by LRDL to GCDL under the SPA nor could it be so transferred as GCDL itself had to apply pursuant to Section 11 of the Act for such approval.
In the matters aforementioned, the firm of Grant, Joseph & Co., of which you were a then partner represented both LRDL and GCDL and was therefore severely conflicted in the result that GCDL did not receive any or any proper legal advice in proceeding with the Project.
By letter of 14th June, 2019 , from you, now as Mitchell & Co., and continuing to represent LRDL, LRDL wrongfully repudiated the SPA.
By reason of the aforementioned matters, GCDL has suffered loss and damage and invites you to make a suitable offer of compensation to include, without limitation, the immediate repayment of all monies paid to LRDL, reimbursement of all construction and associated expenses and an indemnity against claims by Applicants in respect of their expected proprietary rights not being realised.
Should such offer not be received by our chambers within 14 days of the date of this letter, we are instructed to proceed to litigation.
Our client reserves its rights to make any claims in addition to the above.
James A. L. Bristol
HENRY, HENRY & BRISTOL
cc: Grenada Citizenship Development Limited