Web shops in limbo

Wed, Apr 10th 2013, 10:50 AM

Sir Michael said, "This is not a proper case for the court to exercise its discretion to restrain the police from discharging their duties as they consider it proper to do."
The Office of the Attorney General had asked the court to discharge the conservatory order granted by Isaacs.
Attorneys representing a group of web shop operators were seeking to have that order extended until the court rules on their substantive case. They argue that what their clients do is legal.
In a letter to Attorney General Allyson Maynard-Gibson on January 29, attorney Wayne Munroe said his clients' operations do not offend the Lotteries and Gaming Act.
Lawyers for the web shop operators contend that the development of technology and business methods took the operations outside the behavior defined in and covered by the Act.
But Sir Michael ruled that "even if this action were to raise issues as the validity of the Lotteries and Gaming Act, it would not be a proper exercise of my judicial discretion to restrain the police from enforcing the law whilst the validity of the challenged law is being tested".
"Laws are presumed to be valid and must be obeyed unless and until they have been adjudicated as being invalid," he said. "The police must be allowed to enforce the law unless and until the law has been declared to be invalid."
The chief justice added, "I accept that if the constitutionality of the relevant provisions of the Act is challenged in any criminal proceedings in the Magistrates Court, those criminal proceedings may be stayed pending the determination of the constitutional issue in the Supreme Court.
"Be that as it may, it is no justification for not enforcing the law in the meantime."
Sir Michael noted that in their affidavits filed on behalf of the operators, the attorneys do not clearly state the business their clients are involved in.
He also said there is nothing exceptional about this case which requires that the issue of whether the operators' conduct would constitute a criminal offense, should be determined in civil proceedings brought for declaratory relief.
"In my judgment the claim in this action for declaratory relief as to whether the conduct amounted to a criminal offense is not an issue that should be tried in these civil proceedings," he said.
"That issue is properly determined in the criminal court after a criminal prosecution has been initiated."
The attorneys for the operators also claimed that issues to be decided in the matter are whether the Lotteries and Gaming Act offends the constitution and whether the government and police by threatening to prosecute them violated their legitimate expectation to have been granted whatever licences were necessary to ensure that their activities were not in contravention of the provisions of the Act.
Sir Michael said it is unclear how the constitutional question is raised in these proceedings.
He said the only action that is being threatened is a criminal prosecution under the Lotteries and Gaming Act.
He also said the claim by the operators that they would become bankrupt if an interim injunction is not granted is based upon the premise that the police can shut down their entire operations whilst the matter is being litigated.
"There is no basis for this fear," the chief justice said.
"...In my judgment, the claim that the [operators] will suffer irreparable harm unless an interlocutory injunction is granted is not supported by any credible evidence."
REACTION
Attorneys Wayne Munroe and Alfred Sears, who represent the web shop bosses, said they plan to launch an appeal and asked for a short conservatory order while they consult with their clients.
Sir Michael denied the request.
Outside court, Crown Counsel Loren Klein said the ruling was a victory for the rule of law.
When asked if the ruling meant police would shut down web shops immediately, Klein said, "I think the authorities would respect the process of the courts.
"I don't see that happening, certainly not until the Court of Appeal has had a chance to consider the matter."
Munroe represents Percy Web Cafe, Island Luck, FML Group of Companies, Asue Draw, Whatfall and Chances.
Sears, a former attorney general, and Jeff Lloyd represent Paradise Games.

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