Belize International Services Ltd V The Attorney General of Belize

This matter involves an alleged breach of contract by the Government of Belize. In June 1993, Belize International Services (BISL) entered into a Management Services Agreement with the Government of Belize. The Agreement was for a term of ten years with an option to BISL to renew the Agreement for a further ten years. In May 2003, the Agreement was renewed for a further ten years. In March 2005, in consideration of US$1.5 Million paid by BISL to the Government, the parties amended the Agreement and extended its term to June 2020. This latter extension was the subject of litigation whereby BISL sued the Government for breach of the Agreement seeking damages in the sum of US$45 million. The Government argued that the 2005 extension authorized BISL to continue to collect revenue and deposit it into bank accounts owned and operated by BISL which was in violation of constitutional and public finance law. The High Court Judge dismissed the claim and declared the 2005 extension unconstitutional, illegal and invalid. Prescribed costs were awarded to the Government. This decision was upheld by the Court of Appeal.