The Cayman Islands Government (CIG) and Tom Jones International Ltd. (TJI) announced today (25) that they have settled all claims involving the construction of the John Gray High School and Clifton Hunter High School Projects and entered into a binding agreement on 22 March 2013.

As a result of contract termination in 2009, disputes arose between CIG and TJI and proceedings were issued in the Grand Court of the Cayman Islands.  The Settlement Agreement is not to be construed in any way as an admission of liability or wrongdoing by either CIG or TJI. Instead, CIG and TJI are of the view that, given the anticipated costs associated with arbitration, legal proceedings, third party experts and additional expenses, it is in both Parties’ best economic interests to have reached settlement of all disputes in relation to the school projects.

The main provisions of the agreement are that TJI receives four hundred thousand CI dollars (CI$400,000) for expenses related to the use of equipment left on site, and the return of scaffolding and shoring materials owned by TJI.  CIG retains Retention Monies in the sum of five million five hundred and fifty two thousand CI dollars (CI$5.552m). (Retention Monies refers to monies earned by the contractor (TJI) during a construction project but held by the owner (CIG) for an agreed period following completion of a project). This agreement settles all claims and all pending proceedings before the Court and in arbitration, which relate to the new high schools projects.