The household feud over the multibillion-dollar property of late resort mogul Gordon ‘Butch’ Stewart has escalated, with executors now searching for Jamaican Supreme Court docket authorisation to hold out an audit of the Adam Stewart-led ATL Group.
However Adam and two of his siblings, Jaime Stewart McConnell and Brian Jardim – all kids of Butch, have punched again by asking the court docket to take away two of the executors – Butch’s private lawyer Trevor Patterson and his common-law widow Cheryl Hamersmith-Stewart.
The event comes amid the efforts by the opposite two executors to be launched from their duties to the property.
Since Butch’s passing in January 2021, disputes over his will and management of the prized Sandals resort empire – held in a Bahamian belief – have raged in courts.
The battle pits the Jamaican household of Adam, Jaime, and Brian in opposition to the US-based Hamersmith-Stewart and her three kids with Butch. Robert ‘Bobby’ Stewart, one other of Butch’s Jamaican kids, has sided with the US household.
Executors Patterson, Hamersmith-Stewart and Elizabeth ‘Betty-Joe’ Desnoes and Martin Veira need an order to conduct an “pressing ‘purple flag’ audit” of Gorstew Restricted and Equipment Merchants Restricted (ATL), and their subsidiaries. A red-flag audit is completed to establish dangers, irregularities, or warning indicators, which themselves point out weaknesses or different critical issues similar to fraud.
Executors or trustees are individuals named in a deceased particular person’s will who’re legally answerable for managing and distributing the deceased’s property based on the directions outlined within the will.
“The instructions and order sought on this declare are needed for the candidates to duly administer the property in accordance with the phrases of the founder’s will,” the executors mentioned of their fixed-date declare kind, which was filed on November 14 by their attorneys on the agency Hylton Powell. King’s Counsel Michael Hylton and Kevin Powell are main the case.
Butch owned Gorstew and ATL and the executors mentioned they’ve “critical issues” in regards to the operations of the businesses since his demise.
‘ASSUMED’ TITLE
The executors alleged that Adam “assumed” the title of govt chairman of Gorstew with out correct authority and fashioned a brand new board of administrators, excluding the appointed members. The doc didn’t identify the appointed members.
They allege that in or about 2022, there was a “marked improve”, by over 50 per cent, in administration and worker prices in ATL, noting that this has occurred the place Butch is now not on the businesses’ payroll.
Moreover, additionally they declare that the businesses’ sources have been used “to fund and/or pay individuals affiliated with [Adam] Stewart’s private enterprise ventures” and that there are “allegations” that Adam has been taking loans from the ATL Group Pension Fund.
Alleged discrepancies in Gorstew’s funds and unexplained mass resignations by staff in that entity’s accounts division had been additionally raised.
“The candidates’ attorneys-at-law have written a number of letters to [Adam] Stewart’s attorneys-at-law to boost these points and to hunt explanations and/or clarifications in relation to their issues. To this point, the candidates haven’t acquired a passable response,” reads one of many filings from the executors.
They are saying they’re “unable” to arrange statements required by regulation on the businesses, noting that the administration and Adam, specifically, “have refused to cooperate” in conducting an audit or getting requested info.
Adam, Jaime, and Brian have rejected these claims, accusing some executors of misconduct and hostility.
“It has been practically 4 years since Butch Stewart handed away, by which time there was little progress and nearly no transparency from the executors of his property relating to its administration,” alleged senior lawyer Conrad George, a accomplice at Hart Muirhead Fatta, the regulation agency representing the trio.
He continued: “Throughout that point, Jaime, Brian and Adam have grow to be more and more involved about aggressive and hostile actions taken by among the executors in opposition to them, in addition to proof of great misconduct, which they’ve now drawn to the eye of the court docket.”
George mentioned the three siblings “are deeply saddened that authorized proceedings have grow to be needed” and that their focus “stays on seeing their father’s needs carried out and on lastly drawing a line below these unlucky issues”.
Among the allegations of misconduct are contained in a separate lawsuit that Adam, Brian and Jaime introduced in opposition to the 4 executors on November 20.
In that lawsuit, nevertheless, their first request is for the Supreme Court docket to rule on whether or not the swimsuit would violate the no-contest clause of their father’s will. This clause permits executors to take away beneficiaries who problem the need in court docket.
The siblings mentioned “if, however provided that” the court docket determines that the no-contest clause will not be engaged, they need an order compelling executors to distribute the property of the property primarily based on the phrases of the need “as quickly as practicable”.
Additionally they need the court docket to take away Patterson and Hamersmith-Stewart as executors and to nominate chartered accountants Elizabeth Ann Jones and R. Tarun Handa as “unbiased private representatives of the property”.
COURT SETTLING PROPOSED
There’s additionally a proposal for the court docket to take over the settling of the property.
In a separate court docket utility, Veira and Desnoes, longtime associates of Butch, have requested the court docket to launch them as executors.
And Adam, in his affidavit, mentioned the siblings are searching for the court docket’s intervention as a result of if Veira and Desnoes get launched, Patterson and Hamersmith-Stewart can be the one executors left.
“The prospect of Patterson and Cheryl being left answerable for the administration of the property, with out clear instructions from the court docket, is a matter of very critical concern to me, Jaime and Brian,” he mentioned.
Adam argued that Patterson and Hamersmith-Stewart face “extraordinarily critical conflicts of curiosity, which disable them from performing pretty and independently”.
He mentioned the battle of curiosity with Hamersmith-Stewart is predicated on the “hostile litigation” she is pursuing in The Bahamas involving two trusts by which he, Jaime and Brian have an curiosity.
Adam mentioned the conflicts of curiosity with Patterson are “much more critical and wide-ranging” and are constructed on quite a few advisory roles Patterson held for various events, together with these with curiosity within the property.
Based on Adam, there may be additionally “overwhelming proof to counsel that Patterson solid a doc for the aim of deceiving” the trustee of a belief (distinct from the Bahamian Trusts) that his father arrange for him and Jaime, based on the court docket paperwork. He mentioned Hamersmith-Stewart was added as a beneficiary of that belief.
Adam mentioned that on August 16, Patterson acknowledged receiving a letter from Adam’s legal professionals with the allegations. Patterson allegedly mentioned he meant to reply by affidavit.
Adam mentioned as much as November 15, he was not conscious of a response.
The Jamaican Supreme Court docket granted probate, a authorized doc authorising the executors to handle and distribute Butch’s will based on his needs, on October 31, 2023.
Butch left primarily two units of directions for his property. One set associated to how two Bahamian trusts, which management most of his wealth and the Sandals resort enterprise, are to be dealt with.
The Bahamian dispute focuses on the distribution of property within the trusts, with Hamersmith-Stewart claiming a stake that might strip Adam of a big say in Sandals, and grant the US-based household, as a unit, the biggest share. That want, which Patterson mentioned was completed based on Butch’s needs, is being contested by Adam, Jaime and Brian.
Butch’s will, dated Might 15, 2020, comprises the opposite set of directions that pertains to numerous property in Jamaica. Among the many largest are Gorstew Restricted and Equipment Merchants Restricted, collectively forming the ATL Group.
The group consists of Equipment Merchants Restricted, the Jamaica Observer newspaper and all the opposite media pursuits, the posh motorized vehicle companies by means of ATL Motors Restricted; ATL Automotive Holdings Restricted; and the ATL Autobahn Restricted; the AC Marriott resort in St Andrew; a warehouse; a property in Montego Bay; and another enterprise falling outdoors the Sandals & Seashores Group, the Distinctive Group, and the HPI Group.
ADAM GETS MAJORITY STAKE IN ATL GROUP
Butch gave management of the ATL Group to Adam (52 per cent), with Bobby getting 24 per cent and Gordon Stewart (24 per cent; member of US household). He mentioned Adam is to be chairman.
“The allocation of the curiosity within the ATL Group recognises Adam’s necessary function in increasing and growing the ATL Motors subgroup,” Butch mentioned within the will, earlier than outlining how the corporate is to be operated.
He mentioned Adam, Bobby and Gordon, in the event that they need, “shall” have seats as board administrators.
Butch additionally mentioned Adam could set up a administration firm or workforce to take care of the group’s enterprise, and pay the related administration charges on a ”strict arm’s size foundation as decided and authorised by his trustees … “.
There’s a particular provision for the Jamaica Observer, which he mentioned shouldn’t be closed or offered though it was a loss-making entity “for the time being”. He mentioned if it turns into a monetary burden, the three sons should be unanimous in agreeing to promote or shut it.
The executors’ push for the audit of the ATL Group comes months after Sandals Resorts Worldwide delayed the payout of over $6 billion to 9 beneficiaries named in Butch’s will.
Sandals invoked a clause in a payout settlement to defer cost, citing financial pressures on the resort group. It mentioned the ultimate instalment can be made by April 2025. The full quantity was US$95 million (J$13.7 billion) however about 50 per cent has already been paid.
The 42-year-old Sandals Resorts Worldwide is the main all-inclusive resort group within the Caribbean and is vital to tourism-dependent economies within the area. In Jamaica, it is without doubt one of the largest personal employers and overseas alternate earners.
editorial@gleanerjm.com
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