The Jamaican Supreme Court has ordered Premium Farms and Trading Limited to pay Guyanese company, Pure Harvest Incorporated, US$90,170 for two shipments of rice delivered in December 2019. The ruling, delivered by Justice Stephanie Jackson-Haisley, addresses a contractual dispute that has lingered for over four years, emphasizing the importance of adhering to commercial agreements and payment obligations.
The conflict arose from a series of transactions initiated in early 2019. Pure Harvest, based in Guyana, began supplying rice to Premium Farms for distribution in the Jamaican market. The initial shipments were paid for promptly, but issues emerged with the final two shipments, for which payments were not made. This led Pure Harvest to seek legal recourse to recover the outstanding amount.
During the court proceedings, Premium Farms, managed by developer and businessman Richard Lake, acknowledged the receipt of the rice shipments and the outstanding debt. However, the company argued that the payments were contingent upon the successful completion of other sales contracts. Additionally, Premium Farms claimed that there was an exclusivity agreement breached by Pure Harvest, which purportedly hindered Premium Farms’ ability to collect receivables from its customers.
Attorney-at-law, Odeanie Kerr, representing Pure Harvest and instructed by Alexander Williams & Co., refuted these claims. Kerr maintained that the terms of payment were clearly defined in the written contract, which did not include any clauses regarding exclusivity or contingent payments based on further sales. Kerr also emphasized the inconsistency in Premium Farms’ defense, noting that they simultaneously alleged poor quality of the rice and claimed that Pure Harvest’s representative, Neil Newell, had diverted key customers.
Justice Jackson-Haisley, in her detailed judgment, dismissed Premium Farms’ defense, finding no credible evidence supporting the claim of an exclusivity agreement. She noted that Premium Farms’ handling of the contract, particularly after the departure of Newell from the company in early 2020, demonstrated inconsistencies and a lack of transparency. Newell, who had moved on to establish a competing business, was cited as a significant factor in Premium Farms’ altered approach towards its obligations to Pure Harvest.
The judge praised the testimony of Pure Harvest’s other representative, Khemraj Jagmohan, deeming it more consistent and credible compared to that of Lake from Premium Farms. This credibility was pivotal in her decision to rule in favor of Pure Harvest.
The court underscored the necessity for businesses to uphold their contractual commitments and the repercussions of failing to do so. Justice Jackson-Haisley ruled that Premium Farms’ failure to pay for the shipments constituted a breach of contract, ordering the company to pay the owed sum of US$90,170.
Additionally, Premium Farms was instructed to cover the legal costs incurred by Pure Harvest in pursuing the claim.
