Preliminary arguments in the $208.8 million suit filed by the Kissoon Group of Companies against four major insurers got underway yesterday, with Kissoon's lawyer, Senior Counsel Rex McKay, claiming that the four defendants had conspired to defraud the plaintiff.

The suit is in relation to the insurance that was payable after the Park Hotel was destroyed by fire in 2000.

The insurance companies named in the suit are the Colonial Fire and Life Insurance Company (Clico), the North American Fire Insurance Company (NAFICO), Hand in Hand Mutual Fire and Life (HHMFL) and the Guyana Cooperative Insurance Service (GCIS). They are represented by attorneys-at-law Storm Westmaas and Rajendra Poonai and Senior Counsel Robin Stoby.

Seven insurers, the abovementioned four and the Guyana and Trinidad Mutual Fire and Life Insurance Company (GTM), the Caribbean Home Insurance Company (CHIC) and Demerara Fire and General (DFGI) had jointly held the fire policy for the Park Hotel. At that time, the seven insurers had drafted in international claim adjusters from the Axis Eastern Caribbean Ltd firm which had recommended that Kissoon's be paid a settlement of $379.6 million.

Under that settlement, Clico, NAFICO and HHMFL were to pay $56.9 million (15 per cent) each, while GCIS, CHIC and DMGI were to pay $37.9 million (ten per cent) each. GTM had to pay the largest sum totalling $94.9 million (25 per cent).

GTM, CHIC and DFGI each settled their respective claims but the four current defendants refused to pay up.

The original policy had been in the sum of $422.5 million and was said to cover damage to three buildings in the Park Hotel complex, specific features of the structure, the contents of the hotel including fittings, stock, guests' personal belongings, and so on. All of which were devoured in the May 6, 2000 fire that razed the Park Hotel building.

The defendants' argument was that the plaintiff did not have an insurable interest in the property at the time of the fire as it had been leased to the proprietors of the New Thriving Restaurant. Other grounds were also raised.

Certain preliminary points were argued at an in-chamber session on Tuesday, on which the judge ruled. An appeal against that ruling will come up for hearing before the Full Court.

Yesterday, McKay informed the court that there were two related matters before the High Court, one of which was in bail court.

Stoby raised a legal objection that such a claim should not have been before the bail court. He further objected to the present case ongoing before Justice Moore, claiming an abuse of the process of the court.

Justice Moore is expected to rule on Stoby's objection before evidence is taken. The matter has been adjourned until March 4.

On May 6, 2000, a midday fire razed the stately Park Hotel -- owned by the Kissoon family -- located on Main Street, Georgetown and the adjoining New Thriving Restaurant.