St. Maarten Private Eye

The Merit Group vs The Telem Group - PDF document

Joe Richardson is probably very happy he found an excuse to walk away from the Telem board. He leaves a troubled company behind. Being sued is a nuisance. Being sued in a New York state court for 2.3 million dollar is more than a nuisance. It is already a costly affair in terms of lawyer’s fees and the risk for Telem to lose this fight and go under is substantial. Elected state court judges have a tendency to be favorable to the American voter. Telem is not an American voter. Their adversary is.

They want Telem to pay $ 2.3 million in damages and lawyer fees because the phone company breached a contract. It concerns a Citi bank financing deal for 78 million that was secured in 2007 by the Merit Group out of New York. All was ready to go but the Telem board members headed by Joe, started dragging their feet and ultimately backed out of the deal that was supposed to be signed, sealed and delivered after 2 years of negotiations. That is what the complaint of the Merit Group reads and that is what Joe conveniently walked away from. Remarkable that he forgot to mention this in his resignation letter.

You can find the PDF of the law suit below.

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A couple of years of litigation over a 2.3 million claim in a New York court is like driving a Ferrari. It is a thrill but quite an expensive one. So it may be a lot cheaper for Telem to pay the Merit guys and get this over with. Can Telem afford that? No they can’t but they probably introduce some rate hike and charge us for this adventure. So ultimately it is you and me that pay for the incompetence of Joe and his gang. What else is new on Saint Maarten? Well, really new would be if Joe will be sued and confronted with the consequences of his actions if there is reason to do so. And if need be, presented with the bill. Being on a board is not only about fancy trips, corporate goodies and meeting once a week over coffee.

We'd love any legal minds out there to share their opinions, also, it seems the may have been some hanky panky going on under Meyers, perhaps that's why he got out? Anyone got any info to share on this?

LH

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