NASSAU, BAHAMAS- A Supreme Court judge has ruled that striking out the defence of former Sky Bahamas chief executive Captain Randy Butler and his wife, Larona Butler, over a brief delay in complying with a court-ordered payment would have been “unduly draconian and disproportionate,” ultimately granting the couple relief from sanctions in a high-stakes commercial dispute with Alpha Aviation Limited.
The decision, delivered by Justice Leif Farquharson, clears the way for the defence to continue in a claim valued at approximately $234,955.79, while also ordering the release of $19,000 previously paid into court in compliance with an earlier costs order.
The case stemmed from a procedural breakdown in which the defendants failed to meet a court-imposed deadline to pay $19,000 in costs under an unless order tied to earlier litigation sanctions. The delay triggered Alpha Aviation’s application for default judgment, arguing that the defence should be struck out and judgment entered in its favour.
However, the court found that although there had been non-compliance with multiple payment deadlines, the breach was short-lived—amounting to a delay of roughly two days—and ultimately did not justify the harsh consequence of terminating the defence.
Justice Farquharson, applying established principles under Civil Procedure Rules 26.8 and the Denton framework, accepted that the breach was serious given repeated failures to meet deadlines. But he also noted the delay did not disrupt proceedings, no trial date had been set, and the payment had ultimately been secured and paid into court shortly after the deadline.
The court was particularly critical of the defendants’ explanation for the delay, describing it as vague and insufficient to establish a “good reason” for non-compliance, with references to banking delays and fund transfers lacking supporting detail.
Nevertheless, in balancing all circumstances, the judge concluded that enforcing the sanction would be excessive. He emphasized the importance of proportionality, noting that while compliance with court orders must be strictly enforced, justice would not be served by shutting out a defence over a brief administrative lapse.
The ruling effectively allows Captain Butler and his wife to continue defending the claim, while the $19,000 costs payment will be released to Alpha Aviation.
The matter will now proceed through the next stages of litigation, with further directions on costs and case management expected from the court.
Captain Butler told Eyewitness News: “The Court has considered the matter and granted relief from sanctions, allowing the case to proceed. We respect the Court’s ruling and will continue to address the substantive issues through the proper legal process. As the matter remains before the Court, it would not be appropriate to comment further at this time.”
