The government-owned property Prospect Reef Resort has alleged that one of its tenants, Caribbean Sailing BVI, owes it more than $90,000 in overdue rent and utility payments. Caribbean Sailing BVI, for its part, has claimed that Prospect has breached its contract with the company. The case could go to trial before the end of the year, according to Prospect’s managing director. Photo: KEN SILVA

One of the questions Opposition Leader Julian Fraser is scheduled to ask during House of Assembly’s questions-and-answers segment was about the rental income fluctuations experienced by the government-owned Prospect Reef Resort between 2006 and 2012.

The government-owned property Prospect Reef Resort has alleged that one of its tenants, Caribbean Sailing BVI, owes it more than $90,000 in overdue rent and utility payments. Caribbean Sailing BVI, for its part, has claimed that Prospect has breached its contract with the company. The case could go to trial before the end of the year, according to Prospect’s managing director. Photo: KEN SILVA
Mr. Fraser’s question is in reference to information provided by the Ministry of Finance that shows Prospect’s rental income increased $292,904 in 2006 to $909,246 in 2008, and then dropped back down to $286,165 and $491,610 in 2011 and 2012, respectively.

The opposition leader still hasn’t had the chance to ask that question, as government moved the questions-and-answers near the bottom of the HOA order paper when the current sitting opened on Oct. 13, and still hasn’t reached that item of business (HOA is scheduled to reconvene on Monday at 10 a.m.).

However, one of the contributing factors to Prospect’s rental fluctuations could be that one of its tenants allegedly owes the resort more than $90,000 in overdue rent and utility payments.

According to court documents, the Prospect-based charter company Caribbean Sailing BVI and its owner, Chandi Singh, owe Prospect $90,077 for “arrears of rent and utilities,” as well as $7,800 for “a stay at the hotel at Prospect Reef.”

The claim form states that Prospect is also pushing to have Caribbean Sailing BVI “surrender possession” of its commercial premises at Prospect’s restaurant building, and to remove all of its vessels located at Prospect’s marina.

Mr. Singh, in turn, has filed a counterclaim against Prospect “for breach of covenant for quiet enjoyment, trespass, breach of covenant for non-derogation from grant, and breach of contract,” according to an order made by High Court Master Pearletta Lanns.

Further details on Mr. Singh’s claim against Prospect aren’t available, as the High Court Registry has stated that counterclaims aren’t public documents – despite the fact that counterclaims are filed on claim forms, which are public documents, according to the Eastern Caribbean Supreme Court Civil Procedure Rules.

Agreement history

Court documents state that Mr. Singh initially signed an agreement with Prospect in Feb. 2009 to lease eight bulkhead dockage spaces, and another agreement in March 2010 for the rental of 507 square feet of commercial space.

According to Prospect’s claim form, Prospect served Caribbean Sailing BVI a notice to leave its premises and the marina by Jan. 5, 2012 – about two weeks before the claim was filed.

Prospect also filed an application for the High Court to order Mr. Singh and his business to vacate its premises, but a March 2013 ruling by Ms. Lanns struck down that application on the grounds that “Prospect’s notice to quit is defective.”

While the initial claim was filed by Prospect in Jan. 2012, the case has yet to go to trial as the parties involved have filed a plethora of legal applications to amend their claims, introduce expert witnesses, and sort out other technical matters over the last four-plus years.

Prospect Managing Director David Allen O’Neal said he expects the case to finally go to trial later this year.

Mr. O’Neal declined to comment on the matter further. Mr. Singh also declined to comment on the case.

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