Bonnick v Morris & Ors (Jamaica)

Bonnick v Morris & Ors (Jamaica) [2002] UKPC 31 (17 June 2002)

Privy Council Appeal No. 30 of 2001

Hugh Bonnick Appellant

v.

(1) Margaret Morris

(2) The Gleaner Company Ltd. and

(3) Ken Alen Respondents

FROM

THE COURT OF APPEAL OF JAMAICA

---------------

JUDGMENT OF THE LORDS OF THE JUDICIAL

COMMITTEE OF THE PRIVY COUNCIL,

Delivered the 17th June 2002

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Present at the hearing:-

Lord Nicholls of Birkenhead

Lord Hoffmann

Lord Hope of Craighead

Lord Scott of Foscote

The Rt. Hon. Justice Tipping

[Delivered by Lord Nicholls of Birkenhead]

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Jamaica Commodity Trading Co. Ltd, or JCTC for short, is a government-owned company with a monopoly over the import of basic foods into Jamaica. In 1990 JCTC entered into two contracts with a Belgian company, Prolacto SA, for the supply of milk powder. The first contract was made in September 1990, the other in December 1990. Throughout this period JCTC’s managing director was Mr Hugh Bonnick. He left the company at Christmas 1990, shortly before the formal signing of the second contract.

Some time after the first contract was made a dispute arose regarding the amounts payable by JCTC. In August 1991 JCTC started proceedings against Prolacto, claiming damages for breach of contract. The claim was defended. In April 1992 Prolacto served a defence and counterclaim. On Sunday 19 April 1992 the Sunday Gleaner, a leading newspaper on the island, published on its front page an article spread across three columns under the headline “JCTC sues Belgian milk company”. The article read as follows (the paragraphs have been numbered for ease of reference):

“[1] The Jamaica Commodity Trading Company (JCTC) has confirmed that they have filed suit against a Belgian company in respect of a breached contract to supply milk powder.

[2] The faxed response to the Sunday Gleaner from JCTC’s Legal Officer, Karen Ford-Warner, said: ‘We do not feel ourselves able to answer your questions at this stage as the matter is in the hands of our attorneys who have already filed a court action.’

[3] The newsletter Insight reported that the suit is for US$13 million and that the Belgian company Prolacto SA has filed a counter suit. Eagle Commercial Bank, named as a co-defendant with Prolacto in the Insight report, told the Sunday Gleaner that JCTC has withdrawn the suit against them.

[4] The Sunday Gleaner has learned that Mr Alfred Rattray of Rattray Patterson Rattray is representing Prolacto.

[5] A source close to JCTC confirmed that the dispute centres on two supply contracts – the first for 3,000 tonnes at US$1,264 per tonne awarded in August 1990 and the second for the same amount at US$1,325 per tonne agreed in December 1990.

[6] The attractive feature of both was that payment could be made in Jamaican dollars but the contracts were ‘very unusual’. Both were cash contracts and as such prices were lower than average in a recovering and volatile world market.

[7] In respect of the first contract, JCTC was required…

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