Major Legal Victory for Adam Stewart
It has been over five years since the passing of Jamaican hotel mogul Gordon “Butch” Stewart, but the fight over his massive business empire is still playing out in court. In a major recent development, the Supreme Court of Jamaica has handed a significant victory to Butch’s son, Adam Stewart, who currently runs the Sandals hotel chain.
When Butch Stewart died on January 4, 2021, he left behind an uncontested will that gave his son, Adam, the majority interest in the ATL Group, which includes Appliance Traders Limited and Gorstew Limited. However, the people legally placed in charge of carrying out Butch’s will—known as the executors—have so far refused to officially hand over these shares to Adam.
The executors, which include Trevor Patterson, Elizabeth Desnoes, Martin Veira, and Butch’s common-law widow Cheryl Hamersmith-Stewart, claimed they had serious concerns about how the companies were being run. Before officially transferring the shares, they went to court to get permission to hire a foreign accounting firm to conduct a deep-dive investigation, known as a “red flag audit,” into the businesses.
Adam Stewart fought back against this audit, arguing that the executors had no legal right to demand it and calling their case an abuse of process. The Supreme Court agreed with him and completely struck down the executors’ request.
Justice Cresencia Brown Beckford ruled that the executors lacked the legal standing to force the audit. The judge explained that the executors were trying to use a law called the Trusts Act, but they were acting in their role as executors of a will, not as trustees of a trust. Simply put, the court found that managing a will (executorial duties) and managing a trust are two legally different things. Furthermore, the court noted that the shares of the ATL Group were never actually placed into a trust in Butch Stewart’s will to begin with.
As a result, the judge threw out the executors’ request and ordered them to pay Adam Stewart’s legal fees.
For Adam Stewart and his siblings, Brian Jardim and Jaime Stewart, this ruling removes a massive hurdle in a long-running family dispute. Adam’s legal team stated that they hope this decision will finally force the executors to do their jobs and transfer the shares to Adam, just as his father intended.
However, the legal battle isn’t over just yet. The executors have officially filed an appeal. They are arguing that the judge made a mistake and that when they took control of the shares after Butch’s death, those shares automatically became trust property, which would theoretically give them the power to demand the audit under the law.
To help bring some stability to the ongoing tension, the court recently stepped in and appointed a retired judge, Justice Hilary Phillips, to act as an additional executor. Adam’s lawyers hope her presence will bring some “measure and judgment” to the group moving forward.
This case remains highly watched by many in Jamaica’s corporate and tourism sectors because of the massive influence and wealth tied to the Stewart family’s empire.