December 10, 1998
(Finance)

Minister releases settlement amount paid to Atlantic Leasing

Finance Minister Paul Dicks today released the amount of the financial settlement between gGovernment and Atlantic Leasing Limited in relation to the Murray Premises trial and appeal.

"Government has settled all claims by Atlantic Leasing Limited and Mr. Frank Ryan for an amount of $4.2 million," said Mr. Dicks. "The settlement reached with Atlantic Leasing and Mr. Ryan was recommended to government by our counsel and was considerably less than the amount claimed."

In 1994, Atlantic Leasing Limited sued government for damages arising out of government's delay in executing a renewal of a lease of the Murray Premises in St. John's.

The Trial Division of the Supreme Court of Newfoundland and the Newfoundland Court of Appeal both gave judgments in favour of Atlantic Leasing which found government negligent.

Government's intention has always been to publicly disclose the amount of the settlement, when it was legally appropriate to do so, said Mr. Dicks.

"Government had been requested by the claimants not to release the amount of the settlement immediately as part of the terms of the settlement agreement. The legal requirements have been met and we are now in a position to make the details public," said Mr. Dicks.

Media Contact: Paula Dyke, Communications, (709) 729-0329.

1998 12 10                                       1:50 p.m.