PORT OF SPAIN, Trinidad (CMC) — A High Court judge has ordered the Trinidad and Tobago government to pay TT$70,000 in compensation to North American Trading Company Limited, an international tobacco distributor with a free zone designation, after the company was wrongly shut down for a month by the Ministry of Health in 2023. The court also mandated the government to cover the company’s legal costs. Justice Frank Seepersad upheld the lawsuit filed by the company against the Ministry of Health and the Office of the Attorney General.
In his ruling, Justice Seepersad emphasized the need for statutory bodies to act with caution when exercising their powers. He expressed concern over increasing instances of overreach by authorities, asserting that the court would not tolerate the improper or unreasonable exercise of power that infringes on citizens’ rights.
North American Trading Company initially claimed it lost almost US$1 million due to the shutdown, but Seepersad rejected this claim, citing a lack of sufficient evidence. The company, based at the Intercontinental Business Park in D’Abadie, has been operating in Trinidad and Tobago for nearly 20 years under the Free Zone Act, which grants tax exemptions to registered businesses. The company imports tobacco products from international manufacturers, stores them locally, and exports them to retailers in the Caribbean and Latin America.
In January 2022, the company was informed about the operationalization of a new special economic zone regime under recently enacted legislation. However, in November 2022, customs and police officers raided the company without a warrant. In February 2023, the Ministry’s Tobacco Control Unit (TCU) informed the company that it could not continue its operations without licenses under the Tobacco Control Act. The Ministry reversed its decision nearly a month later, following advice from the Attorney General’s Office. The company claimed it lost approximately US$979,714 due to the disruption of its imports and exports.
Justice Seepersad ruled that the Ministry’s initial decision was illegal and unreasonable, as the Tobacco Control Act did not apply to free zone companies. He stated that the TCU had overstepped its authority and imposed unjustified constraints on the company. While the judge declined to compensate the company for its claimed losses, he awarded TT$40,000 in damages for the breach of its constitutional right to equality before the law and protection of the law. Additionally, he granted TT$30,000 in vindicatory damages for the Ministry’s actions based on incorrect legal advice and the warrantless police search.
This ruling highlights the importance of proper legal procedures and safeguards to protect the rights of businesses and individuals in Trinidad and Tobago.
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