THE Deposit Insurance Corporation (DIC) has agreed to settle with its former general manager Arjoon Harripaul, bringing an end to his wrongful termination lawsuit.

On Wednesday, Justice Betsy Ann Lambert-Peterson signed off on the consent order entered into by both parties.

The matter was expected to go to trial in March but was adjourned to Wednesday when the judge was told of the latest development.

While terms of the order were not made public, DIC’s attorneys in February 2022 and March this year, reportedly offered Harripaul $2 million to settle, contingent on terms being kept confidential.

Newsday understands the parties agreed to a final settlement of $2.75 million and the payment of $500,000, plus VAT, in costs to Freedom Law Chambers.

The parties also mutually agreed to bring his contract of employment to an end with the DIC accepting his letter of resignation, dated April 7, 2016. Harripaul sued the DIC in September 2016, seeking $3.6 million.

The case made its way to the Appeal Court where DIC attorneys, previously led by Reginald Armour, SC, sought extensions several times in order to file witness statements.

The last challenge by the DIC, at the appellate court, was in September 19, when Justices of Appeal Mira Dean-Armorer and Malcolm Holdip upheld Lambert-Peterson’s ruling that failure by DIC attorneys to meet deadlines to file witness statements was “inexcusable.”

DIC attorneys said failure to file the statements in time was due to Armour, at the time, being involved in a criminal trial in the Turks and Caicos and was unable to settle five proposed witness statements for the DIC.

The DIC also claimed “continuing heavy work commitments of counsel during May 2019” as well as recording a wrong date for the filing, as reasons why additional time was required.

Another excuse was that Armour and his junior counsel Vanessa Gopaul were engaged in industrial relations matters between OWTU and Petrotrin which were of “national importance,” in October and November 2018, and that the DIC’s legal team in April 2019, was involved in heavy commercial litigation involving a local public utility company and another in Guyana.

On February 14, 2022, the DIC’s legal team led by Armour, filed submissions in support of the latest application for an extension but one month later, on March 16, he was appointed Attorney General. Ian Benjamin, SC, took over the DIC's defence.

On April 11, Benjamin, Gopaul and instructing attorney Elena Araujo urged the court to grant its application and for relief from sanctions since it was no fault of the DIC for the delays.

In her ruling, Lambert-Peterson said the reasons given by the DIC “did not amount to a good explanation.”

She said to accept them would be to open the floodgates of similar explanations which would “ultimately undermine hard-won gains whereby attorneys generally comply with rules, practice directions and court orders.”

Her ruling meant had the matter gone t