GraceKennedy

In respect of a recent report appearing in the Daily Observer on July 10, 2009 of legal action before the Court between Paymaster (Jamaica) Limited and GraceKennedy Remittance Services Limited (“GKRS”) and Paul Lowe, attached is a copy of a response which was issued by GKRS to the Jamaica Observer and printed in the Sunday Observer of July 12, 2009. [click here to view]

The Company has also advised the Jamaica Stock Exchange of the following in keeping with the Disclosure requirements of the Jamaica Stock Exchange Rules:

1. Suit was filed by Paymaster (Jamaica) Limited (“Paymaster”) against GKRS and software developer, Paul Lowe, on August 25, 2000 claiming damages arising out of certain causes of action primarily (1) alleged use by GKRS of certain software which Paymaster claims it held under exclusive license from the software developer and (2) GKRS’ alleged use of confidential information which Paymaster claims was shared with GKRS concerning a possible partnership in the bill payments business.
   
    
2. An Interim Injunction was granted to Paymaster on August 25, 2000, restraining GKRS from using the software pending the trial of the action. The application for injunction was heard ex-parte, that is, without GKRS being present. The injunction remains in place and GKRS has not used the disputed software since.
   
    
3. GKRS has denied all claims made by Paymaster.
   
    
4. The matter was dormant from 2001 until a Case Management Conference was held in May 2006 when orders were made concerning the timetable for the case through to the trial date originally set for July 7-18, 2008. The trial has since been rescheduled to October 12-23, 2009.
   
    
5. Various applications have been made before the Court, preliminary to the trial of the action. By way of Supplemental Witness Statement dated 14 April 2008 Paymaster for the first time set out alleged losses suffered by Paymaster of J$652,658,519.00 and US$12,000,000.00. GKRS applied to the Court to strike out this Supplemental Witness Statement on the basis that the Witness Statement raises new claims not pleaded by Paymaster in its statement of case. The Court of Appeal recently ruled that the Supplemental Witness Statement should not be struck out and accordingly can be considered by the trial judge at the trial in October of 2009.
   
    
6. Based on the opinion received from the Company’s Counsel and in accordance with Accounting Standards, no provision has been made in the Company’s accounts in respect of this action.
   
    
7. GKRS continues to vigorously defend this action which it considers to be completely unfounded.
   
    

Posted: July 16, 2009