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Drug dealer wins judgment against construction firm

a judgment in Supreme Court against a major construction firm he was formerly in business with.Round the Island powerboat race winner Westmore Stoneham, 34, took Island Construction Services Ltd.

a judgment in Supreme Court against a major construction firm he was formerly in business with.

Round the Island powerboat race winner Westmore Stoneham, 34, took Island Construction Services Ltd. and company president Zane DeSilva to court over alleged failure to pay commission on the sale of motor tyres.

Last November, Stoneham was jailed for seven-and-a-half years after pleading guilty to possession of more than $65,000 worth of cocaine with intent to supply.

Puisne Judge Richard Ground ruled in favour of the inmate against Island Construction but dismissed the charge against Mr. DeSilva, who he said acted on behalf of the firm.

The court heard Stoneham worked with Bermuda Tyre Company Ltd. and dealt with the Public Transportation Board. In December, 1994, Stoneham left Bermuda Tyre and planned to start his own business for which he needed capital.

It was partially for this reason that he approached Island Construction and Mr. DeSilva. An oral agreement was made and Stoneham and the firm entered a business relationship.

The negotiations were handled by Mr. DeSilva but Mr. Justice Ground ruled that he was only acting as an agent of the company. He said the contract was between Stoneham and Island Construction.

Mr. Justice Ground noted there was no dispute over how much Stoneham's commission would be which was ten percent of the landed cost of the tyres.

But in August, 1995, Mr. DeSilva moved to terminate the arrangement with Stoneham after he was arrested for the importation of cocaine. In November, he was convicted and sent to jail.

It was the continuation of Stoneham's commission from this point onward that the dispute was over, said Mr. Ground.

Stoneham argued that commission was due on all sales that resulted from his introduction of Island Construction to PTB and Martino Brothers Tyre Company Ltd., a US tyre supplier.

Island Construction countered that the commission was only due on sales made while in partnership with Stoneham.

Mr. Justice Ground said he found that the commission arrangement was a way of remunerating Stoneham for his part in the joint business venture with Island Construction.

He added that he considered Stoneham's conviction of cocaine possession a blow to the relationship between the two business partners which entitled Island Construction to terminate their arrangement with the criminal.

At the termination of this contract, Stoneham could have taken PTB with him as his customer but PTB refused to deal with him.

However PTB had committed to the whole of its 1995/96 purchase order for tyres before the termination of the agreement and therefore Stoneham was entitled to whatever commission remained unpaid from that deal.