Novelo brothers lose bid to derail D.F.C. probe
After two separate adjournments this morning, the case of the Novelo brothers versus the Commission of Inquiry investigating the Development Finance Corporation finally got underway this afternoon. But the drama that followed could hardly have been anticipated. The bottom line tonight is that the Novelos’ application has been dismissed and they have been ordered to pay court costs. But how that decision was reached was a long and interesting journey.
Earlier today, attorney for the Novelos, Hubert Elrington, petitioned Chief Justice Abdulai Conteh for more time to review what he referred to as the “voluminous” affidavit of forensic auditor Mark Hulse, which had been submitted today. Conteh agreed, but when the appointed hour–one-thirty–arrived, Elrington was nowhere to be found even though he was on the veranda just minutes earlier. In the alternate, the C.J. then asked the court’s Marshall to call the names of David and Tony Novelo three times. Again no answer. At this point, Conteh ruled that he felt the claimants were trifling with the court and the very administration of justice. For what he called an “inexcusable” act and in the context that it is the universal duty of lawyers to be at court on time, Conteh said he had no alternative but to strike out the application. He even went on to order a thousand dollar cost of court for each defendant payable by the claimant. You’d think that would be that, but in a stunning turn of events, minutes after the ruling, all parties were back in court. Turns out that Elrington had been sitting in Conteh’s chambers the entire time waiting for the matter to be called.
Hubert Elrington, Attorney for the Novelos
“I was in the Chief Justice’santechamber waiting, so he reconsidered.”
During the confusion, David and Tony Novelo showed up at the court to hurriedly file their own affidavit in response to the one submitted by Mark Hulse, but never made an appearance in the courtroom. When the case resumed, Elrington formally apologized to the court for causing any inconvenience. To that the Chief Justice reminded Elrington that counsel’s duty is to be in court, nowhere else and that he was particularly offended by the incident. Conteh then set aside his earlier judgement to strike out the order and allowed the case to proceed. Lois Young appeared on behalf of Herbert Lord, Merlene Bailey Martinez, and the D.F.C. Commission, while Magali Marin Young appeared for Mark Hulse. After bickering over legal technicalities such as the format of the claim and who was to be named in the action, all parties agreed to include the Attorney General as a part of the action. That agreed to, the lawyers got down to the real business at hand.
Elrington argued two main grounds, the first an urgent application to have the court remove Hulse as the forensic auditor or in the alternate order that he stop investigating and reporting anything concerning the Novelo’s to the D.F.C. Commission. The attorney contended that Hulse “is riding roughshod over my clients rights to confidentiality … we need protection of an interim injunction. Tell him not to do it until the substantive matter comes to court.” To that the Chief Justice asserted that because Hulse hasn’t completed his report, to make such orders would be premature. Elrington agreed and decided to abandon that ground. He then moved on to the issue of conflict of interest, going so far as to say that Hulse had “dirty hands” because of his company’s involvement in the Novelo receivership and through the sale of fuel products by his gas station to the bus company. At this the C.J. put the brakes on Elrington, pointing out that he had not presented any evidence regarding the sale of petrol and he should not use the court to cast aspersions on anyone. The C.J. stated, “I try to keep a level playing field … what is the relevance to the application?” Elrington responded, “My clients simply want a fair investigation.” In her address to the court, Marin Young, appearing for Hulse, maintained that Hulse was hired as a consultant by the receivership and had no involvement with D.F.C. at that time. She went on to contend that he was asked by the Commission to investigate the D.F.C., not the Novelo family. When Lois Young spoke, she argued that by right the claim should have been brought to the court by Novelos Limited, not David and Tony Novelo as they are not suffering as shareholders.
In making his ruling late this evening, the C.J. said that the application was misconceived and mischievous because even though the claimants have the same last name, they are not Novelos Limited. That company is in receivership and the application should have been brought by the company with the consent of the receiver. Regarding Mark Hulse, the C.J. ruled that no bias claim could have been made because nothing the claimants offered showed any support that the appointment of the auditor was unlawful. Overall, the C.J. found that the entire application was simply a strategy to delay the D.F.C. Commission’s work on grounds without any merit. In dismissing the application, the judge awarded a cost of two thousand dollars for each respondent payable by the Novelo brothers. While the injunction issue has been settled, there is still the substantive matter, that is whether or not the Commission is still operating legally. That case will be heard at a later date.
old news, but interesting events. I never read this one before, interesting indeed.