How Government Lost Key Plank of U.H.S. Case

Magali Marin-Young

Senior Counsel and constitutional attorney Magali Marin-Young discussed the ins and outs of the Caribbean Court of Justice’s decision in favor of the Belize Bank Limited to enforce payment of the loan note. One week of the three-week period under the Crown Proceedings Act has passed for enforcement of the judgment, with the Government’s members of the House of Representatives showing a united front supporting the Prime Minister’s interpretation, which is that Parliament cannot be forced to pay the money. During her explanation of the case, she made the point that Government conceded a key point in the litigation at the C.C.J., which was originally affirmed by the Privy Council – that then-Prime Minister Said Musa did not need parliamentary authority to proceed with the note.

Magali Marin-Young, Constitutional Lawyer

“The Privy Council found that the loan note did not need legislative approval; that it was a valid note, that it was a valid debt instrument. Because it found – and it’s very technical – but it found that basically government was not borrowing; under the settlement agreement, Government was settling certain liabilities, and in consideration for settling those liabilities, it had promised to pay by the loan note, these funds. So it was not borrowing per se, it was settling certain liabilities that it had. Ultimately, the Privy Council found – and the Privy Council went into the merits of whether this loan note was valid, pursuant to the Laws of Belize, and found that it was.  The Caribbean Court of Justice said, ‘Look; you already have a decision from your final appellate court at the time finding that this was a valid loan note. You cannot bring that argument here to Belize, to us again.’ Furthermore, in the courts below, the attorney at the time for the Government of Belize, Denys Barrow, had in his statement of issues, conceded that the Prime Minister at the time did not need legislative approval for entering into this loan note. So the Caribbean Court of Justice said, you cannot re-litigate this issue before us. There is another decision from your final appellate court saying the Belize Bank has a valid loan note. So ultimately, the Caribbean Court of Justice gave the Belize Bank permission to enforce their note.”