Receivers for the formerly bankrupt Anguilla golf course and resort Temenos did not act in bad faith when they sold the property to the Anguilla Development Corporation five years ago, the Eastern Caribbean Supreme Court ruled in a judgment released last week.

 

The property was in the works since at least 2002, when United States billionaire Leandro Rizzuto started discussions with Anguillan government officials about constructing the island’s first golf course, as well as a luxury villa project, according to The Wall Street Journal.

Construction on the project reportedly began in 2005, and the golf course — designed by Australian golf pro Greg Norman — and clubhouse opened in 2007.

But after the 2008 financial crisis hit, the property fell on hard times and had to be put in receivership in 2010, according to the ECSC judgement.

A public auction for the property was held in June 2011, the judgment states, and the Anguilla Development Corporation made a successful bid and acquired the development in August of that year.

However, after acquiring the property, the corporation found that it owed some $67,000 in lease payments to local landowners; that four generators valued at $350,000 each had been removed from the land; and that it had to pay thousands more in unexpected expenses on the development, the judgment states.

Lawsuit

As such, the Anguilla Development Corporation sued the property’s receiver, the Cayman Islands branch of Credit Suisse, arguing that the company should have disclosed the issues with the property before the public auction.

Credit Suisse disputed all of ADC’s claims, stating that the development corporation was responsible for conducting its own due diligence before buying the property, according to the judgment.

“Credit Suisse states that it owed no duty of care to the claimant when there were several clauses in the sales brochure requiring that any buyer do their own investigation,” the judgment states.

High Court Justice Cheryl Mathurin sided with the defendant, slapping down all of ADC’s claims.

“Without repeating the clauses in the sales brochure, the potential buyer was required to do his own inspections of Temenos,” the justice ruled. “It is also significant that there is no mention of generators in the sales brochure or other documents.”

The golf course is now up and running again under the name CuisinArt Golf Club, recently hosting the fifth annual Anguilla Open in June.

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