Home » Liberia: Colony Incorporated Challenges Legal Basis of Debt Court Enforcement on Its Property Despite Supreme Court Clearance

Liberia: Colony Incorporated Challenges Legal Basis of Debt Court Enforcement on Its Property Despite Supreme Court Clearance

Colony Incorporated argues that the enforcement is not only unlawful but could cause irreparable harm to its operations, staff, and reputation.

Monrovia – Colony Incorporated a business owned by a Liberian, the current leaseholder and operator of the former Palm Spring Hotel property in Congo Town, is raising serious legal concerns following a recent communication from the Debt Court for Montserrado County, instructing it to comply with enforcement measures related to a Supreme Court ruling in favor of Chinese businesswoman, Ms. Ding Shu Jun.

By Willie N. Tokpah 

The Debt Court, acting on an order from the Supreme Court of Liberia, claims it is enforcing a final judgment in the sum of US$1,355,886.00 against Mr. Najib Kamand, the Judgment Debtor.

However, Colony Incorporated insists that it is not, and has never been, a party to the case, and that its property is being wrongfully targeted.

“We Are Not Part of This Case,” Colony Incorporated noted. 

In response to the Debt Court’s move, Colony Incorporated have issued a strong rebuttal, stating that the property now being earmarked for closure was legally leased to Colony Incorporated as far back as September 2, 2020, and is no longer owned or controlled by Mr. Najib Kamand or any business associated with him.

“The Supreme Court’s judgment never named Colony Incorporated. Our client is a separate legal entity, with no business or ownership ties to Mr. Kamand or his former companies,” Colony Inc., management said.

“We question the legal basis for this enforcement attempt, especially after the Debt Court itself previously ruled that Colony Incorporated was not liable or connected to this debt.”

Contradictory Enforcement Efforts Raise Questions

The move by the Debt Court comes after the same court issued a July 31 ruling in favor of Colony Incorporated, granting its Bill of Information and ordering the court’s Clerk and Sheriff to unseal the company’s premises and desist from any enforcement action against it.

That judgment was based on a review of Colony Inc.’s Articles of Incorporation and lease agreement with the Intestate Estate of the Late Lawrence A. Morgan, the original owner of the Palm Spring property.

The Debt Court previously acknowledged that Mr. Bou Najm Khaled, not Najib Kamand, is the sole owner of Colony Incorporated, which operates independently from the entities involved in the debt case.

Now, however, Colony Incorporated finds itself once again in the crosshairs of enforcement, this time under the instruction of the Supreme Court’s mandate, a mandate the company says does not name them or their assets.

Legal and Business Implications

The situation has sparked legal confusion and concern among business owners and legal practitioners, who worry about the growing risk of third-party businesses being entangled in enforcement actions to which they are legally unrelated.

“you cannot enforce judgments against properties or entities not included in the court’s final decision,” said a legal observer.

“If this becomes a pattern, it sends the wrong message to investors and business operators about property rights and judicial due process.”

Colony Incorporated argues that the enforcement is not only unlawful but could cause irreparable harm to its operations, staff, and reputation.

Though Colony Incorporated is not officially listed as a party to the case, it remains unclear whether representatives from its legal team will be invited to defend its interests, which the company says are being infringed upon despite prior legal clarity.

Colony Inc. has vowed to pursue all available legal remedies to prevent what it calls an unjust and unlawful enforcement of a judgment to which it is neither a debtor nor party.

The Rule of Law at a Crossroads

As the judiciary seeks to enforce judgments fairly and efficiently, cases like this one raise significant concerns about procedural overreach and property rights protection.

Colony Incorporated’s case may now serve as a test of whether Liberia’s courts can enforce debt rulings without violating the rights of unrelated third parties, a principle essential to maintaining investor confidence and the sanctity of corporate autonomy in the country.