The Full Court has set aside five preservation orders against the State in a legal dispute involving VAMED Engineering GmbH, clearing the way for the Health Ministry to take possession of two hospital construction sites and associated equipment.
Chief Justice Navindra Singh and Justice Zamilla Ally-Seepaul handed down the decision on September 22, allowing an appeal by the Attorney General against orders made by Justice Renita Singh on August 6.
The Health Ministry is now cleared to take possession of the sites, containers, equipment and construction materials, and to proceed with the projects.
The dispute stems from the Health Ministry's termination of construction contracts for the Georgetown Paediatric and Maternal Hospital and the New Amsterdam Hospital Campus.
The original orders had required the Ministry to preserve both sites, as well as 52 containers and equipment at the Georgetown site, and prohibited interference with contractors' documents, designs, plans and intellectual property.
In allowing the appeal, the Full Court said the preservation orders could not stand.
"This appeal concerns the validity of five Preservation Orders made by the Learned Judge," the Court said, adding that the orders were "inconsistent with the Learned Trial Judge's findings" and that their "legal foundation was inadequately established."
The Court further held that Section 16 of the State Liability and Proceedings Act prohibits injunctions against the State in proceedings of this nature, and that the prohibition could not be avoided by describing the orders as preservation orders.
It also found that the orders lacked the required statutory basis under the Arbitration Act 2024 and conflicted with findings that there was no urgency and that damages would be an adequate remedy.
The High Court's refusal to grant VAMED conservatory and restraining orders remains in effect, as does its decision to refer the underlying contract dispute to arbitration.
The Attorney General was also awarded $500,000 in costs.