Weekend Report | The Freeport News | PDF Online Guide

Wednesday, July 8, 2009

Home National Sports Business Lifestyles Religion Arts & Culture Pulse Spice Editorial letters Opinion Foodie Sportscope Real Talks Weekend Report PDF's Classifieds Contact About Us Archive Weather

Letters | Opinion | Editorial | Weekend Report
FOODIE SPORTS SCOPE REAL TALKS
Tenant feud escalates in Freeport, G.B. By CANDIA DAMES ~ Guardian News Editor ~ candia@nasguard.com: As the jobs of approximately 75 people in Freeport hang in the balance, the St. George family, a part owner of Port Group Limited, has hit out at the "draconian measures" the company took against businessman Rick Hayward, who is threatening to take legal action against Port Group for "unlawful interference" in his establishments. Hayward is the son of Sir Jack Hayward, the other major shareholder in Port Group Limited, the Grand Bahama Port Authority (GBPA) and affiliated companies. Last Thursday, Rick Hayward was locked out of three of his restaurants at Port Lucaya — The Pub at Port Lucaya, La Dolce Vita and East Restaurant — and sued for $230,000 he allegedly owes in rent. Hayward told The Nassau Guardian last week that he was unable to pay his employees on what was supposed to be payday due to the lockout. He admitted to owing eight months' rent, but said the landlord — Bourbon Street Limited, a subsidiary of Port Group Limited — was being unfair in its demands. Hayward said yesterday he planned to pay employees today. Yesterday attorney Fred Smith, who represents the St. Georges, wrote to Port Group Limited and affiliated companies saying his clients were dismayed and discouraged by the decision to lock Hayward out. This latest dispute comes as the St. Georges and the Haywards try to mend a relationship that has been scarred by two years of court battles over the ownership of the GBPA and affiliated companies. Smith said in the letter that the St. Georges were not consulted before the lockout and there was no board meeting where this decision was taken. "My clients consider that any action of this nature, which affects the closure of three very long-term businesses in Port Lucaya, which affects the livelihood of over 75 employees, which affects the tourist product and local restaurant amenities, which affects the income of the companies, and which affects one of the children of shareholders of the Port Group of Companies, should have been handled privately, sensitively and a lot more delicately and with prior consultation with my clients, and at minimum through the board levels," Smith said. "My clients are concerned that this unilateral action taken on the part of the Port Group of Companies will enure to the detriment of the calm and sensible administration of the Port Group of Companies' business affairs and result in poor public relations." He said this approach also creates "unnecessary tension in the community, exposes the Port Group of Companies to unnecessary legal fees and possible litigation by Rick Hayward and his companies." Smith made it clear that the St. Georges appreciate that it is important for all licensees to pay any financial obligations under license or lease agreements. "However, given the current economic climate, and having regard to the history of attempting to compromise and work with licensees in order to keep the wheels of commerce spinning smoothly in Freeport, which was (the late Port chairman) Mr. Edward St. George's guiding principle, it is in our clients' view far better to attempt to work things out rather than create adversarial situations." The St. Georges requested that a board of directors meeting of the Port Group of Companies be called immediately so the matter may be resolved "rather than perpetuating warfare." Meanwhile, Rick Hayward's attorney, David Thompson, wrote to Bourbon Street Limited claiming that it was not Bourbon Street (the landlord) that locked him out, but a third party (Port Group Limited) and threatened legal action if the matter is not satisfactorily resolved. According to Thompson's letter, this "interference" in the landlord and tenant relationship started when by letter dated April 29, 2009, Ian Rolle, president of Port Group Limited, which is not the landlord of Port Lucaya, wrongfully made demand of LDV Limited (Rick Hayward's company) for payment of rents and threatened to proceed "without further notice" to "re-enter and finally repossess" the premises rented by LDV Limited from Bourbon Street Limited. "Quite rightly the tenant ignored the letter from the third party," said Thompson, who called on Bourbon Street Limited to remedy the situation or face legal action. The attorney also said that the lockout has caused Hayward financial losses that have been compounded by the embarrassment caused by the "high handed, autocratic attitude of Port Group Limited in this matter." Thompson requested a meeting at which time he intends to propose that Bourbon Street Limited give back possession of the premises pending settlement of its court action against Hayward. He also indicated that Hayward would be willing to pay in escrow an agreed amount of "say $100,000" pending resolution of all outstanding matters between the landlord and the tenant, when arrangements will be made to pay the balance. Thursday, July 2, 2009