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Minister Simmons Remarks - Expenditure RE: Lahey Clinic litigation

Friday, March 16, 2018
Sen. The Hon. Kathy Lightbourne-Simmons

'At the press conference on 9 March 2018, I informed the public that I would provide confirmation of the expenditure for the Lahey Clinic litigation.

The civil action brought against Lahey Clinic commenced as a result of the former Government authorising the former Attorney-General, Trevor Moniz, to engage the services of law firm Cooley (UK) LLP (Cooley). Any funds recovered as part of this program were to be earmarked for other civil recovery related matters. Civil recovery is currently undertaken by the Ministry of Legal Affairs and is a process whereby property which is, or represents, property obtained through unlawful conduct is seized.

In relation to the Lahey Clinic litigation, Cooley advised that the estimated cost of proceeding with the full hearing of the matter until completion would be approximately $3,000,000 - $4,500,000. However, the matter did not proceed to full hearing as the case was dismissed by District Judge Indira Talwani on the 8 March 2018. Notwithstanding the dismissal, the cost to date of the litigation was still substantial at $998,883.33. It should be noted that this is not the final cost as there are still several outstanding invoices to be settled, with an approximate value of $100,000, which will result in the total expenditure exceeding $1,000,000.

Therefore, although the Lahey Clinic litigation formed part of the proposed asset recovery program, it is important to note that the Government is yet to recover any assets from this scheme.'