Supreme Court order halts closure of sportswear firm
A Supreme Court judge averted the shutdown of sportswear manufacturer, Wynlee Trading Company Limited, when it ordered the return of sewing machines and other seized equipment to the company.
The machines were seized to recover a debt purportedly owed to Versachem International Limited by another company called Wynlee Distributors Limited, according to court documents.
All three companies are based in Kingston.
Hugh Wildman argued on behalf of Wynlee Trading that at no time did Versachem serve the sportswear manufacturer with any documents regarding the debt, that the seizure of the equipment did not result from litigation and, as such, it constituted a trespass on its property.
According to documents obtained by the Financial Gleaner, Versachem filed a claim in the Supreme Court in August 2016 seeking $4.64 million against Wynlee Distributors for principal and interest on invoices outstanding from 2015 to 2016.
Wynlee Distributors is said to be in the business of supplying cleaning, healthcare and personal care products.
On September 6 of this year, Wildman said in court filings that bailiff, Bradley Morris, turned up at Wynlee Trading and seized its equipment.
Wynlee Trading admitted that it was aware that Versachem had brought a claim against Wynlee Distributors, whose principal director Winsome Halliman, that Versachem had obtained a default judgement in the case, and had ordered the seizure of the goods on that basis.
SEPARATE, DISTINCT OPERATIONS
But Wynlee Trading also told the court that its principal director is Leebert Halliman, and that the two companies were separate and distinct operations.
Wynlee Trading said the machines seized were used for the sewing of sports uniform for schools and that their confiscation had halted production, rendering the company incapable of fulfilling its local and international contracts.
It contended that the seizure of the machines also resulted in 26 persons being unemployed.
Wildman said the machines were returned to Wynlee Trading following Justice Bertram Morrison's granting of an order for a mandatory injunction compelling the bailiff to do so.
Attorney Zaieta Skyers, who filed the claim on behalf of Versachem International against Wynlee Distributors, declined to comment on whether they will be challenging Justice Morrison's order.