Plantation A Legal Thriller

by J M S Macfarlane

  Chapter 52

  By now, it was almost one o’clock and Riordan, Meredith, Wells and Ashby were due to meet Waring at three in Riordan’s chambers.

  The barrister wanted a quick meal – but he insisted on having a hot lunch as he usually worked late into the night and wanted to get onto the appeal documents without delay. There was no time to be lost. As he was a member of the Middle Temple although having chambers in Lincoln’s Inn, he suggested they go to Middle Temple Hall which had a public school-style refectory for members of that Inn of Court.

  Inside the Hall, there were long wooden tables and benches which reminded Ashby of his school days, not to mention the brown Windsor soup and raspberry fool. Around them, everyone was wearing pin-striped suits and white shirts, including the women advocates while some were still wearing their winged collars and v-shaped tabs, having come out of court directly across the road. One or two judges were swapping anecdotes about the frightful advocacy they’d endured that morning and several Masters were taking a breather from the onslaught of summonses in the Bear Garden.

  Around the panelled walls were the coats of arms of former titled members from the Middle Ages. A visitor could well imagine the first performance of Twelfth Night taking place there. At night, bar students ate their dinners in the Hall as part of the eccentric ritual to become advocates and members of the Inn.

  Within half an hour, the four of them had finished lunch and re-located to Riordan’s chambers in Old Square, after going back across the Strand, through the front of the High Court building, across the main hall, down several turnings, stairs and rabbit-warrens, across a corridor known by everyone as ‘the Chicken Run’ (because of its resemblance to the farmyard when everyone was late for court), out through the rear entrance into Carey Street, into New Square and then on into Old Square.

  “George Waring will be with us in around fifteen minutes,” said Riordan. “We need to agree our plan of attack. As I see it, the appeal papers should go in as soon as possible. We could try and drag things out but Plantation’s board has decided to liquidate the company so we need to let everyone know that we’re opposed to that. The danger is that if we delay, Waring could get his Scheme of Arrangement from the Companies Court judge and we’ll be too late to do anything about it.”

  “I’ll send a fax to Ridgefords and the others this afternoon, telling them that our appeal papers will be issued on Monday morning,” said Meredith.

  “Yes, that’s essential. We have the good fortune that it’s now Friday afternoon. We have all the weekend to get the job done so that the papers can be with the court – and Waring, Plantation, Ridgefords – and everyone else – on Monday morning. The appeal shouldn’t be difficult to construct – we’ll say the judge simply got it wrong all the way. He said that the Captain, Christoforou is dead. We say that’s wrong – Christoforou is alive and kicking – somewhere – and is an obvious fraudster along with Hellas Global. Now, it’s your job, Robert to find Christoforou and be quick about it. It’s essential that we have actual proof of fraud within the next fourteen days – or Plantation will be a dead duck. I can try and put something in about ‘lack of seaworthiness’ – that Hellas Global knew that the Captain Stratos was falling to bits but let it go to sea contrary to what it said in the marine policy but that might not be enough to get us to the Court of Appeal. You see, at this stage, we’re only asking for leave to appeal – for the right to appeal – there won’t be any actual appeal hearing itself – not yet. If the court looks at what Hedley has said and also what we’re complaining about, we might not get off first base at all and any actual right of appeal might be denied. Unlike some countries, such as the States, there is no automatic right of appeal – in England, you have to show that there is something important or unusual about your case or that the judge got his facts and evidence wrong. Otherwise the courts would be clogged up with trivial complaints. Anyway, if we have direct evidence of fraud which the judge didn’t consider this week, then that might be enough to secure Plantation a reprieve.”

  A knock was heard at the meeting room door, Waring’s arrival was announced, the man himself stepped through the door before they had time to say anything else and a pot of tea was brought in for everyone.

  “Right,” said Waring, “let’s get straight to it, shall we ? I’ve been appointed by the board of directors....”

  “Without my authority – and in my absence,” said Ashby.

  “Uh, granted – in your absence.....following the judgment today in the High Court against Plantation for twenty two million pounds, of which there is a deficit of eighteen million pounds.”

  Riordan tried to intercede by saying “We intend to appeal....”

  “Please, if I could just explain my own position first,” protested Waring. “On the authority of the board....”

  “The board had no authority – I wasn’t there, I didn’t agree to the liquidation, there was no meeting of shareholders – need I go on ?”

  Waring was undeterred. “As I was saying, I will be in the Companies Court tomorrow morning....”

  “Tomorrow is a Saturday,” said Meredith.

  “Ah yes, you’re quite right – so it is. Well, on Monday morning, I will be in the Companies Court to seek an Order liquidating the company and for a Scheme of Arrangement to be put in place. Obviously, Plantation is unable to settle the debt to Hellas Global so there is no other course open to the company or its directors – it’s now a matter for the creditors including the Inland Revenue. In addition, the company is unable to operate at all because of the injunction obtained by another creditor, Caspian Limited....”

  “Oh, them,” scoffed Ashby. “You needn’t worry about them.”

  “Ah, but I do worry about them, Mr Ashby – very much – and about all of the other unpaid creditors.”

  Riordan held up his hand to call for the right to speak.

  “Mr Waring, part of my practice includes insolvency business and like you, I’ve also been appointed by the board to advise it about the Hellas Global claim. And I can tell you – and we will be advising this to Plantation’s board – that from a legal perspective, at this precise moment, it is still uncertain whether anything at all is owed to Hellas Global, despite the judgment in the Admiralty Court today. As I said earlier, we are appealing against today’s judgment and until that appeal has been decided, any “debt” owed to the shipowners has not been fully proved.”

  “Well, I don’t agree,” said Waring. “Hellas Global can use the judgment they have against Plantation to wind up the company. If we don’t do it, they will.”

  “Let them try but it will amount to the same thing : while there’s a Notice of Appeal pending and where there are very serious allegations of criminal fraud surrounding this claim – until a final decision is given in the Admiralty Court, a judge in the Companies Court will hold fire on a Scheme of Arrangement. To do the contrary would be most unwise. At worst, it would only mean having to wait a few weeks. And imagine if Plantation was wound up and the company’s business was closed down and you were busy gathering in assets – then suddenly, an Admiralty judge agrees out of the blue to set aside today’s judgment after categoric proof of fraud was presented to the court, meaning no debt had existed in the first place. Where would that leave everyone ? Not to mention the possibility of claims by Plantation’s shareholders, perhaps against you personally. It would be an infernal mess – and something to be avoided. Do you see my point ?”

  “Yes.....I do,” said Waring while visibly wincing at the mention of a potential claim against him by Plantation’s shareholders. “But what am I to tell the board in the meantime ? They expect the company to be put into liquidation and a Scheme of Arrangement to be set up.”

  “You needn’t worry about them,” said Ashby. “We can tell them together that they should only have a short period of time to wait until the question of the Stratos claim is fully determined one way or the other. In any event, they are still responsible to me as t
he largest shareholder and they must follow the legal advice given to them – which you’ve heard just now from both Mr Riordan and Mr Meredith – and which the board – or you – can independently confirm.”

  “I may very well do that. And what about the injunction which Caspian took out yesterday ? What do you intend to do about that ?”

  Riordan closed his file of papers and said, “Our Notice of Appeal will go in on Monday and everyone will be told about it today, in case they try to do anything precipitate. Judges don’t like wasting their time and neither do we. It’s also expensive – liquidators can be held personally responsible for wasting costs, can’t they ? At any rate, we will answer the nonsense which Caspian and their lawyers have told the court during the early part of next week – and woe betide Mr Wheeler of Marlowe & Co, if he’s been leading us all a merry dance.”