ERNIE Smatt, an Ocho Rios businessman who operates Watersports Enterprises Ltd., has paid US$1 million in court after the Court of Appeal gave him a stay of execution of a US$2.6 million Supreme Court judgment against his company.
The US$1 million is to be deposited into a joint interest bearing account in the names of Attorney-at-law Raphael Codlin who represents Smatt and Dennis Morrison, Q.C. of Dunn Cox Orrett and Ashenheim who represents Ocho Rios businessman Michael N. Drakulich, who is also an attorney-at-law.
The Supreme Court award was made in July against Watersports for disobeying a Supreme Court order. Watersports and Mr. Drakulich have been engaged in a long-standing feud since 1979 over the use of shore and hotel facilities in Ocho Rios. Watersports is appealing the matter.
Following the judgment, Mr. Drakulich obtained a writ of seizure and sale from the Supreme Court to recover the US$2.6 million.
On Monday, the bailiff for the Supreme Court, Mr. N. Sherriah, went to Ocho Rios and seized luxury yachts and other large boats and aquatic equipment belonging to Watersports, thereby locking down the business.
Watersports then applied to the Court of Appeal on Tuesday for a further stay of execution of the judgment. Mr. Justice Henderson Downer heard the application in chambers and granted the stay of execution. Watersports was ordered to pay US$1 million into the joint account until its appeal has been heard and determined. The money is to be held in an interest bearing account and is to be managed by the lawyers.
The seizure of the boats and equipment would have prevented Watersports from carrying out its lucrative contracts with the major cruise shipping lines.
Mr. Drakulich said he did not want to see Jamaica's relationship with the cruise lines injured by the seizure of the boats nor Watersports' workers deprived of their jobs and income.
He said it was on that basis he agreed late Monday night for the bailiff to allow Watersports and Mr. Smatt to continue using the boats and equipment on condition that on going to court Tuesday, US$1 million would be deposited into a joint interest bearing account.
