IN THE SUPREME COURT OF JUDICATURE OF JAMAICA

CIVIL D I V I S I O N

CLAIM NO. HCV 3381 OF 2006

BETWEEN LEYMON FLLOYD STRACHAN CLAIMANT

AND

IN CHAMBERS

JAMAICAN REDEVELOPMENT

FOU hlDATION I N C . DEFENDANT

Barrington Frankson and Howard Taylor for the claimant

Sandra Minott Phillips and Corrine Henry instructed by Myers Fletcher

and Gordon for the defendant

October 10 and 16, 2007

PENALTY, CONSIDERATION, PERFORMANCE OF EXISTING

OBLIGATION, RULE IN PINNEL'S CASE, RULES 25.1 (b) and (c), 26.1

(2) (k) and 27.2 (7) and (8) of the CIVIL PROCEDURE RULES

SYKES J.

1. Some years ago Mr. Strachan borrowed money from National

Commercial Bank. The debt is now in the hands of Jamaican

Redevelopment Foundation Incorporated ("JRF"). No issue is taken on

the assignment of the debt to JRF. JRF is an efficient debt collector.

JRF has an iron f i s t covered with a velvet glove. It enforces

agreements that it makes with debtors. It may agree to accept a

lower amount in satisfaction of the original debt but the conditions

are stringent. JRF does not accept or tolerate excuses. It is not

afraid to litigate to enforce its rights. Some might even say that JRF

relishes and thrives on a legal challenge. This case is about one of

those agreements. Mr. Strachan has taken up the challenge of trying

to establish that two clauses in the agreement between him and JRF

impose a penalty. JRF contends otherwise.