Ralph Palm
WILLEMSTAD--The Court of Appeal has rejected the appeal of former Ennia Chief Executive Officer (CEO) Ralph Palm, confirming a previous judgment that requires him to repay a substantial sum of money deemed unduly received. The decision, made public recently, upholds the original ruling from March 2023.
Additionally, the court ordered Palm and his management company, R.A.R. Palm Management Services, to jointly bear the legal costs of the appeal on behalf of Ennia.
Palm was found liable not only for undue payments, but also for unjust enrichment. The total amount he must repay is approximately 3.7 million Caribbean guilders (Cg.), plus statutory interest. This obligation is separate from ongoing liability claims against a broader group of former Ennia executives.
The case involves EC Investments and Ennia Caribe Holding as plaintiffs against Palm and his management firm.
Ennia demanded reimbursement from Palm on grounds of unjust enrichment and unlawful conduct. The claims relate to bonuses, compensation for housing and car expenses, and personal expenditures made with company credit cards while Palm was serving as CEO.
For example, in addition to a fixed compensation of US $300,000 per year, he also received a yearly bonus of at least US $300,000 between 2011 and 2014. Between June 2, 2015, and April 20, 2018, he received bonuses that in total amounted to Naf. 2,387,500.
He was further entitled to a car allowance of Naf. 40.000, a pension plan based on conditions applicable to directors and cost of medical insurance for him and his wife for the medical plan applicable to the other directors. And in April 2016 Ennia paid for his newly acquired Dodge Durango to the tune of Naf. 97,112.
The initial court ruling largely granted Ennia’s claims, and the Court of Appeal reached the same conclusion.
The dispute stems from a management agreement signed on February 9, 2011, between Ennia Holding and Palm Management, under which Palm became the statutory director of Ennia Holding on February 14, 2011, and later of Ennia Investments on January 1, 2012.
The sole shareholder of Ennia, Parman International, formalised Palm’s CEO remuneration in a decision on April 28, 2011, signed by then-owner Hushang Ansary.
The Central Bank of Curaçao and St. Maarten (CBCS) dismissed Palm from his position on July 7, 2018.
This ruling marks a significant moment in Ennia’s efforts to recover funds from former executives and reinforces the legal accountability of corporate leadership in Curaçao’s financial sector. The case remains under close watch as other legal proceedings continue against ex-management members.
