The Full Court of the Supreme Court of Judicature has allowed an appeal filed by the Attorney General and CLICO Life and General Insurance Company (South America) Limited, paving the way for a rehearing of a High Court matter involving CLICO Investment Bank Limited (CIB).
In its decision, delivered on April 8, 2026, the appellate court overturned an earlier ruling that had struck out the claim against CIB. The initial decision, handed down in September 2025, found that aspects of the claim were res judicata, relying on a previous case dating back to 2009.
However, the appellate court found that conclusion to be erroneous, noting that the current claim is based on different legal grounds and raises issues that were not addressed in the earlier proceedings.
The case centres on allegations that several companies within the CL Financial group—including CLICO Life and CIB—operated under common control, with funds allegedly transferred between entities in a manner that may have been improper.
The appellants are seeking equitable remedies, including declarations of a constructive trust and the tracing and restitution of funds allegedly diverted within the corporate structure.
The court noted that such allegations, involving complex corporate arrangements and potential misconduct, require full examination through the legal process, including discovery and witness evidence. It emphasised that striking out the claim at an early stage, based solely on pleadings, was inappropriate.
The ruling also referenced a recent Caribbean Court of Justice decision, which affirms that while courts are generally cautious about piercing the corporate veil, they may intervene where corporate structures are used to improperly divert assets.
As part of its orders, the appellate court directed that the matter be reassigned by the Chief Justice to a new High Court judge for hearing.
