Defendant named in e-gaming lawsuit files counterclaim

P.E.I. government lawyers move to dismiss e-gaming lawsuit

One of the co-defendants named in the latest iteration of a multi-million dollar lawsuit against the P.E.I. government has filed his statement of defence, and is countersuing the plaintiffs in the suit for $141,614.69, plus interest and costs.

Capital Markets Technologies filed a new $50-million lawsuit with the P.E.I. Supreme Court in March, after a previous suit had been thrown out.

The claim alleges government was in "breach of its good faith performance of contract and [failed] to act honestly in the performance of its contractual obligations" with regards to a memorandum of understanding signed with CMT to set up a financial transaction platform in the province to process online transactions.

Efforts to set up a financial transaction platform in the province came in the wake of the province's failed attempt to establish itself as a regulator for online gambling, according to Auditor General Jane MacAdam's report on the subject.

That suit also named businessperson Paul Jenkins as a defendant for "breach of fiduciary duty." According to the suit, Jenkins was for a time the sole director of the subsidiary of CMT that signed the agreement with government.

In the statement of defence, lawyers for Jenkins state that he initially didn't know he had been named sole director of the company, and when he found out he resigned.

The defence also states that any failure of CMT to move ahead with its business plan "was not caused by any breach of fiduciary duty by Paul Jenkins."

Invoices not paid, says Jenkins

According to the defence, Jenkins understood his role with the business was "to introduce the principals of the Business to local contacts who could be useful in advancing the business opportunity, including representatives of the Province of Prince Edward Island."

The countersuit includes $41,614.69 representing invoices from Jenkins to CMT which the defence says were never paid. Those are listed as having been delivered for "services rendered," "government relations," and "consulting services for government placement."

The countersuit includes a further $100,000 which the defence alleges was provided to CMT to be held in escrow, but was released to the company.

Lawyers representing the P.E.I. government had not yet filed a statement of defence as of Friday.

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