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Madsen Law P.C.

Allegations Against Haitian Prime Minister and Former Business Partner Proven False

Miami, Florida – The owner of the newspaper Haiti Observateur Group, Leo Joseph, agreed to the dismissal of a lawsuit brought against him by Madsen Law P.A.’s clients Laurent Lamothe, the Prime Minister of Haiti, and Patrice Baker, his former business partner.

In Lamothe v. Joseph, 12 Civ. 23300(MGC)(JJO) (S.D. Fla.), Lamothe and Baker sued Joseph for publishing an article that accused them of using the Haitian government to pressure Haitel, a bankrupt telecommunications company, to sell its assets at below market value to Nord Citadel, a New York investment company seeking investments in Haiti.

In exchange for the dismissal, Joseph agreed to publish in the Observateur – in its entirety – a sworn declaration by Michael Charles, the founder and managing partner of Nord Citadel. The declaration confirmed that the allegations against Mr. Lamothe and Mr. Baker were completely fabricated. In telling passages of the declaration, Charles refutes the Observateur’s claims that the Prime Minister was involved in promoting the sale. “Neither I, nor Nord Citadel was ever pressured in any way by Mr. Lamothe,… or anyone else associated with the Haitian government.”

The sworn declaration also shows that Mr. Joseph misrepresented the sources he used for writing the article. He claimed that he had interviewed Mr. Charles, citing him as the principal source for his allegations against the Prime Minister. According to Charles they held a brief phone call where only the time and place of a possible interview were discussed. The interview never materialized.

In another passage of the declaration, Charles denies Joseph’s claims that he was wined and dined in Haiti by Haitian government officials in their attempt to seal the sale of Haitel. Charles notes, “I have never been to Haiti in my life.” In the same vein, Charles acknowledges that he has never met Prime Minister Lamothe. Citing Charles as the source, the Observateur’s central allegation was that the Prime Minister had pressured Nord Citadel to put down a substantial down payment to purchase Haitel and that they had “agreed to a purchase price of $25 million even though the assets of Haitel were worth around $80 million.” In the sworn statement, Charles denied having ever made those false statements to the Observateur’s Joseph simply because the interview never occurred.

Prime Minister Lamothe long claimed that neither he nor his former partner had brought the lawsuit against the Observateur to obtain monetary compensation. Lamothe stated he felt completely vindicated by the dismissal, because “by agreeing to publish an affidavit that proves beyond a shadow of a doubt that we were truthful from the beginning and that Mr. Joseph was simply not telling the truth, the objective of the lawsuit has been more than met.”

Charles’s declaration supports the U.S. District Court’s early finding in February of 2013 that Joseph had acted with “malice and with a reckless disregard for the truth.”

Bertrand Madsen, one of the attorneys for Messrs. Lamothe and Baker, noted that “this lawsuit was never about money – rather, it was about the truth. The District Court has now ordered Joseph to publish a declaration that totally vindicates our clients’ position. The truth has thus been restored.”

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Madsen Law P.A. Successfully Defends $240 Million Lawsuit

On December 19, 2014, United States District Judge Jack B. Weinstein rejected all the claims brought by Haiti’s first cellular telephone company (Haiti Telecommunications International S.A., a/k/a HAITEL) and its founder Franck Cine, against Madsen Law P.A.’s client, the Haitian national telecom provider Les Télécommunications d’Haiti S.A.M. (a/k/a TELECO).

In Teleco v. Cine, No. 13 Civ. 6462 (JBW) (E.D.N.Y.), Cine and HAITEL alleged that TELECO had used its influence as a government-controlled entity in Haiti and conspired with Haitian authorities to “extort … licensing fees from Haitel” and ultimately drive the cellular telephone giant out of business.  Cine and HAITEL sought an award of more than US$ 240 million, representing the value of Cine and HAITEL’s assets, all of which have been seized in on-going bankruptcy proceedings in Haiti.

Represented by the former U.S. Attorney for the Southern District of Florida, Guy A. Lewis of the law firm LEWIS TEIN PL, Cine and HAITEL sought an order compelling TELECO to arbitrate their claims in Bermuda in accordance with an agreement that was signed by the parties in 1998. TELECO, represented by Madsen Law P.A., countered that the arbitration agreement was null and void because the agreement had been signed without any involvement from TELECO’s board of directors.

Following a two-day bench trial, Judge Weinstein agreed with TELECO and issued a sweeping 19-page decision, ruling that TELECO had no obligation to submit to arbitration because the parties’ agreement was invalid. Applying Haitian law, Judge Weinstein found that TELECO had proven its case “by clear and convincing evidence” and that “Haitel has no right to arbitrate disputes it has with Teleco.”

For more details on the case, you may want to read the following:

Courthouse News Service

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