Plain­tiff in e-gam­ing law­suit ponies up $300,000 se­cu­rity

The Guardian (Charlottetown) - - THE ISLAND - BY STU­ART NEATBY

The Supreme Court of P.E.I. has re­ceived a $300,000 se­cu­rity re­quired for an amended e-gam­ing law­suit, lev­elled against for­mer premier Robert Ghiz and the P.E.I. gov­ern­ment.

The $300,000 se­cu­rity was posted last week by Cap­i­tal Mar­kets Tech­nolo­gies, which is su­ing the pro­vin­cial gov­ern­ment for $50 mil­lion. CMT filed an amended state­ment of claim on Thursday, adding seven new de­fen­dants to the law­suit, bring­ing the to­tal num­ber to 14.

A re­sponse to CMT’s amended state­ment of claim was also filed on Thursday by Ste­wart McKelvey, the le­gal firm rep­re­sent­ing the pro­vin­cial gov­ern­ment, Robert Ghiz and eight other de­fen­dants.

CMT is seek­ing dam­ages related to a scut­tled at­tempt to es­tab­lish a plat­form for pro­cess­ing on­line fi­nan­cial pay­ments. The suit al­leges the gov­ern­ment breached “its good faith per­for­mance of con­tract” and failed to “act hon­estly in the per­for­mance of its con­trac­tual obli­ga­tions.”

The re­sponse from Ste­wart McKelvey says the al­le­ga­tions made in the amended state­ment of claim are “scan­dalous, friv­o­lous, vex­a­tious or an abuse of process” and states that there is “no gen­uine is­sue re­quir­ing a trial.”

CMT was a share­holder in a com­pany that worked with the pro­vin­cial gov­ern­ment in 2011 and 2012 to es­tab­lish P.E.I. as a na­tional in­ter­net gam­bling reg­u­la­tor.

The plan was aban­doned af­ter it was de­ter­mined to be il­le­gal.

An ini­tial law­suit filed by CMT against the pro­vin­cial gov­ern­ment was struck down by the P.E.I. supreme court in Fe­bru­ary of 2016. The law­suit was deemed an abuse of the pro­cesses of the court, but CMT was al­lowed to file a new state­ment of claim.

The new state­ment of claim was filed in March of 2017, but the amend­ments added the new de­fen­dants.

The $300,000 se­cu­rity was re­quired in or­der to al­low three of these new de­fen­dants, Wil­liam Dow, Gary Scales and Tracey Cut­cliffe, to be in­cluded in the law­suit. CMT had al­ready paid an­other $732,098 se­cu­rity to cover po­ten­tial costs for the P.E.I. gov­ern­ment and for Paul Jenk­ins, a busi­ness­man named in the law­suit.

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