Lawyers representing U.S oil investor, Jack Grynberg has applied to a judge in New York for a default judgement against Grenada's Deputy Prime Minister and Minister of Energy, Gregory Bowen in connection with a US$500 million bribery lawsuit filed against the senior government minister.
Informed sources told GRENADA TODAY that Minister Bowen did not enter a defense in the U.S court in the case filed against him and three Russians by Grynberg in an oil and gas deal arrangement that went sour.
There are unconfirmed reports that the Deputy Prime Minister has since retained the services of a prestigious law firm in the United States to represent him in the matter.
According to a well-placed source, the law firm has written to the judge asking for time to put in the defense for Minister Bowen.
This newspaper was able to obtain the copy of a document filed in the court hearing the matter by one of the lawyers for Grynberg serving notice of their intention to seek the default judgement against the Number Two Man in the Grenada government.
UNITED STATES DISTRICT COURT
SOUTHERN DISTRICT OF NEW YORK
RSM PRODUCTION CORPORATION,
JACK J. GRYNBERG, and
GRYNBERG PETROLEUM COMPANY,
Plaintiffs, 06 Civ.11512 (DLC)
v.
MIKHAIL FRIDMAN, LEN BLAVATNIK,
LEVKORCHAGIN and GREGORY BOWEN,
Defendants.
DECLARATION OF DANIEL L. ABRAMS
I, Daniel L. Abrams, an attorney in good standing with the Bar of the State of New York, hereby affirms under penalty of perjury:
(1). I represent the Plaintiffs herein, and I respectfully submit this Declaration in support of Plaintiffs application for a Default Judgment against Gregory Bowen.
(2). This case was filed on November 1, 2006. As can be gleaned from the accompanying Declaration of the Server, service of process was effectuated on Gregory Bowen on November 14, 2006.
The service was proper pursuant to Fed. R. Civ. P. 4(f)(2)(C)(I), in as much as there is no internationally-agreed means of service of process for Grenada (such as the Hague Convention), and Mr. Bowen was served personally in a manner that is not prohibited by Grenadian law.
(3). Independently, there is ample evidence that Mr. Bowen has received actual notice of this lawsuit. I attach two articles from January 2007 and an article from November 2006 in which Mr. Bowen is quoted as acknowledging this lawsuit.
(4). In the context of a related arbitration pending in the International Centre for the Settlement of Investment Disputes ("ICSID") between the Government of Grenada and Plaintiff RSM Production Corp. ("RSM"), RSM had previously undertaken not to take any affirmative steps to move this cause forward without giving the ICSID Tribunal and the Government of Grenada 24 hours' notice.
Grenada's counsel in the ICSID arbitration has stated that it does not represent Mr. Bowen, and at no time has RSM provided an extension of time to answer or move with respect to the Complaint, or acted in any other way to excuse Mr. Bowen's default.
(5). On February 15, 2007, RSM gave the Government of Grenada and the ICSID Tribunal 24 hours notice that they would be taking affirmative steps in this case.
On February 19, RSM gave the Government of Grenada and the ICSID Tribunal 24 hours advance notice that they would be, inter alia:
(1) filing affidavit of service proving that Gregory Bowen was served,
(2) obtaining a certificate of default against Gregory Bowen and
(3) seeking a default judgment in accordance with Your Honor's procedures.
(6). On February 20, 2007, I filed the Affidavit of Service, and sent Mr. Bowen the Notice of Pretrial Conference and your Honor's Individual Practices via Federal Express Priority International.
(7). On February 21, 2007, the Clerk entered a Certificate of default against Mr. Bowen. As of a docket check at 8:00 this morning, Mr. Bowen has still not purported to file and answer or serve this office with any papers.
(8). It is respectfully submitted that Mr. Bowen has been in clear default for over two months by failing to respond to the Complaint. Any mitigation that can be attributed to RSM undertaking in the ICSID arbitration is now lost, since RSM advised the Government eight days ago that it would be moving forward with this case, and four days ago that it would be seeking a default judgment against Mr. Bowen.
(9). The damages in this case are very high, at least $500, 000, 000, due to the enormous and well-recognized value of the oil and natural gas resources in Grenadian offshore territories.
Mr. Bowen is Grenada's Agriculture Minister, and as alleged in the complaint, Mr. Bowen interfered with the contractual and business relationship between the Government of Grenada and RSM, most notably the written contract whereby RSM would, inter alia, develop the oil and natural gas resources in the Grenadian offshore territories.
Mr. Bowen's interference was due to RSM's failure to tender Mr. Bowen (an alleged) bribe, and the willingness of the other defendants to facilitate the payment of (an alleged) bribe to Mr. Bowen.
An extensive inquest will be necessary to determine the precise amount of damages. Due to the fact that joint and several liability is appropriate here, RSM believes an inquest can take place at any time, notwithstanding any other developments in the case against the other Defendants.
( 10). Accordingly, Plaintiffs request that Gregory Bowen show cause why a default judgment should not be entered against him, and why an inquest should not be had.
DATED: New York, New York
February 23, 2007
Daniel L. Abrams
