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Business
May 8, 2010

Show me the money, LIME tells Digicel

TELECOMMUNICATION providers Cable & Wireless (C&W) said on Friday that it expects to be “fully compensated” and “reimbursed” by Digicel in relation to a ruling by the UK High Court.

The firm made the remarks in a press release in response to reports that Digicel would be seeking to reduce costs awarded against them in a suit it brought against Cable & Wireless.

“We’d expect Digicel to say they want to negotiate on the costs. They lost the case comprehensively, and the judge has awarded costs against them. We estimate that they have spent about £10m in legal costs already, so it doesn’t surprise us that they want to negotiate. We are considering our position, but as we have been awarded costs by the court, we are very well positioned,” said Donald Austin, executive vice- president, legal and regulatory at LIME, the name under which C&W operates in the Caribbean.

The High Court two weeks ago awarded costs against Digicel in its lawsuit against Cable & Wireless Communications and scolded the Irish-owned telecoms provider for its handling of the case. Digicel had brought suit against Cable & Wireless claiming that C&W had deliberately and intentionally delayed Digicel’s entry into several markets in the Caribbean between 2002 and 2006.

Austin added in the release that in considering its position in relation to negotiating costs, C&W will take into consideration “the rebuke of the trial judge” in handing down the decision in the case which C&W contends was “baseless”.

“Any negotiated settlement with Digicel can only be in the context of our company being fully compensated and reimbursed for the enormous expense brought on by a totally unnecessary and time-wasting suit,” said Austin.

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