Sandals

Independent forensic accounting and expert analysis helped independent directors evaluate high-stakes allegations in a cross-border family trust and corporate governance dispute involving one of the Caribbean’s most significant privately held enterprises.

Following the death of Sandals Resorts founder Gordon “Butch” Stewart, the trusts controlling Sandals Resorts became the subject of litigation challenging the governance of the trust structure and alleging financial misconduct, asset diversion, governance failures, and breaches of fiduciary duty.

Given the size and significance of the enterprise, the proceedings attracted considerable attention across the international trust, fiduciary, private wealth, and family-enterprise communities.

Retained by an ad hoc committee composed exclusively of the independent directors of Cromwell Trust Company, our team conducted an independent forensic accounting investigation and evaluated the allegations raised in the litigation.

Our work included an extensive review of treasury operations, audited financial statements, accounting under International Financial Reporting Standards, contractual arrangements, related-party transactions, corporate governance, and cross-border financial flows. We also interviewed senior executives and prepared two expert reports responding to successive forensic accounting opinions submitted on behalf of the plaintiff.

The Supreme Court rejected the plaintiff’s principal forensic accounting evidence, concluding that its opinions were “unproven, speculative and inherently flawed,” and that the report was in material breach of the procedural requirements governing expert evidence. The Court also recognized that the allegations had already been subjected to an independent forensic investigation commissioned by the Trustee’s independent directors.

The engagement contributed to a highly favorable resolution for the client, including Sandals Resorts, helping preserve the governance, stability, and continued operation of one of the Caribbean’s largest and most economically significant privately held enterprises.