October 20, 2008 1 Comment
A US$500 million law suit brought by Jack Grynberg against former Grenada Minister of Energy Gregory Bowen and others has been dismissed by a New York District Court.
The government of Grenada in 2005 had terminated an agreement with Grynberg’s RSM Production Corporation to explore for oil and gas in Grenadian waters, after he had invoked a state of force majeure only 14 days after he had signed the agreement in July 1996, and used the inactive period to sell rights that he did not have instead of investing in the exploration for oil and gas.
A statement from the opposition New National Party (NNP) said that Grynberg, in an effort to have the agreement re-instated, formulated a lawsuit in which he alleged that the then Energy Minister asked him for a bribe, and threatened the Keith Mitchell administration to file the law suit if his demand was not met.
Grynberg’s original complaint in New York District Court was thrown out by the judge. He thereafter amended his complaint three times in an effort to keep the issue alive, until the general elections in 2008.
In dismissing the case against Bowen, the judge found Grynberg’s allegations to be scandalous, baseless and false.
The judge also indicated that he would entertain an application for Grynberg to reimburse the legal fees of the defendants.
The NNP release stated, “it is instructive to note that Mr Bowen winning the case, not only is his name cleared, but he has also removed potential damages of US$500 million from the government and the people of Grenada, the amount that Grynberg sued for.”
Source: Caribbean Net News