American Barrick Resources (TSE) appears to have lost a round in its legal battle with Utah-based Gold Standard (NASDAQ) because it didn’t file response papers on time with New York Supreme Court last fall. The default by Barrick is the main reason why the judge has decided not to hear the company’s opposition to an earlier ruling over an alleged disinformation campaign relating to the Mercur gold mine lawsuit.
After Barron’s, a business weekly published an article on the fight for Mercur, Barrick launched a $41-million suit accusing Gold Standard President Scott Smith and Vancouver stockbroker Rayaard Saadien of engaging in a disinformation campaign.
When the New York Court dismissed the suit last September for lack of evidence, Barrick filed a motion to be relieved from the judgment on the grounds that it had an excuse for not filing response papers by Nov. 3.
However, judge William Davis said there appears to be a consistent pattern of purposeful neglect. “It was Barrick who sought two lengthy adjournments of the summary judgment motion and after stipulating to an adjournment, did not file papers with the court,” he said.
As a result, Barrick’s motion to vacate the default has been denied and the company has been ordered to pay Gold Standard $1,500.
“The case was brought about to harass us,” said Smith, who claims to have spent $300,000 in legal fees.
Asked to comment, Barrick spokesman Isabelle Mulligan said the company will appeal the decision to preserve its rights. She said, “The publicity suit was very much a side show to the main lawsuit,” set for trial in Tooele, Utah, April 30.
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