Aviation Associates, Inc. v. Virgin Islands Port Authority

26 V.I. 24
CourtSupreme Court of The Virgin Islands
DecidedDecember 14, 1990
DocketCivil No. 389/1987
StatusPublished
Cited by5 cases

This text of 26 V.I. 24 (Aviation Associates, Inc. v. Virgin Islands Port Authority) is published on Counsel Stack Legal Research, covering Supreme Court of The Virgin Islands primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Aviation Associates, Inc. v. Virgin Islands Port Authority, 26 V.I. 24 (virginislands 1990).

Opinion

PETERSEN, Judge

MEMORANDUM OPINION AND ORDER

Plaintiff, Aviation Associates, Inc. (hereinafter “Aviation”) brought suit against defendant Virgin Islands Port Authority (hereinafter “VIPA”), claiming damages arising from an alleged breach of a lease of commercial property at Alexander Hamilton Airport, St. Croix. Aviation is a sub-sublessee who is presently in possession of the property in issue. VIPA is owner-lessor and lessee of said property. VIPA became Owner-Lessor when, as an instrumentality of the Virgin Islands Government, it succeeded to the interests of the Virgin Islands Airport and Industrial Resources Authority (hereinafter “VIAIRA”). VIAIRA was created by the V.I. Government to operate the public airports in the U.S. Virgin Islands, and it was VIAIRA as owner of the property in issue who first executed the lease agreement now at the heart of this lawsuit. VIPA became Lessee when it accepted an assignment of the lease from First Pennsylvania Bank, N.A. (hereinafter “First Penn”). First Penn was mortgagee for the original lease and the subsequent subleases. After various foreclosures and purchases at U.S. Marshall sales, First Penn assigned its interests as Lessee to VIPA. Prior to the First Penn assignment, Aviation subleased from the sublessee, John and Caroline StuartJervis.

In its current position of sub-sublessee in possession of the leased premises, Aviation contends that First Penn’s assignment of all its right as Lessee to VIPA transferred all the Lessee’s rights and obligations to VIPA. VIPA, on the other hand, suggests that when it accepted the assignment from First Penn it did not accept all the rights and responsibilities as Lessee under the original lease and the subsequent subleases. Having received motions for summary judgment from both sides, the Court must decide whether First Penn’s Reassignment and Lease Surrender to VIPA was a mere transfer of rights without delegation of the Lessee’s obligations.

It is the Court’s conclusion that, in view of the clear and unambiguous language of First Penn’s Reassignment and Lease Surrender dated May 20,1986, there was a full and complete assignment to VIPA of the rights and obligations of the Lessee under the original lease and subsequent subleases. Accordingly, there being no material issue of fact, summary judgment will be entered in favor of Plaintiff against Defendant as a matter of Law.

[27]*27OPERATIVE FACTS AND PRIOR PROCEEDINGS

In a lease dated February 20,1969 (also “Prime Lease”), VIAIRA leased 4.20 acres of unimproved land designated as Parcel No. 33, Alexander Hamilton Airport, Estate Mannings Bay to the Virgin Islands Airmotive Corporation (hereinafter “VIAC”).1 VIAC was granted a term of twenty-five (25) years with a renewal option.2 The Lessee agreed to use the premises, together with all improvements, for the purpose of conducting a Fixed Base Operation and “Skytel” (motel or hotel and related facilities) and other aeronautical and related activities.3 The Prime Lease further provided for Lessee to make certain improvements of the property: (1) construction of a utility building; (2) construction of a building space for aeronautical purposes; (3) construction of hangar facilities for aircraft storage; (4) pave ramp space for aircraft parking, maintenance and/or storage; (5) fence unenclosed area; and (6) construct a hotel (Skytel).4 Lessee was further authorized to “install at its own cost and expenses such improvements as it may deem necessary subject to the condition that such installations are made in accordance with plans and specification approved in advance by the Agency and other government agencies and departments whose consent are otherwise required. The legal title to all improvements erected by or on the part of, or on behalf of, or for the benefit or use of the Lessee, shall remain in Lessee.”5

In accordance with the provisions of this lease relating to construction by the Lessee, VIAC as lessee was required to “make any and all reasonable structural and non-structural improvements, alterations or repairs of the premises that may be required at any time hereafter by any such present or future rule, regulation, requirements, order or direction.”6 Section 12 of this Prime Lease further provided for Lessee at all times to keep the premises clean, in good order and repair.7

[28]*28Subsequent to the execution of the Prime Lease, VIAC mortgaged its leasehold interest to First Penn Bank. Said interest was later foreclosed by First Penn and subsequently purchased by the bank at a U.S. Marshall sale. First Penn later assigned all its interest acquired by virtue of the U.S. Marshall Sale to Robert T. Stavely and Howard J. Taylor. A written Assignment of Lease was recorded in the Office of Recorder of Deeds, St. Croix. Stavely and Taylor in turn executed and delivered a mortgage covering the leasehold interest to First Penn.

Stavely and Taylor subsequently subleased, with the consent of VIPA, a portion of the leased premises to John Stuart-Jervis and Caroline Stuart-Jervis. The portion of the premises subleased to the Stuart-Jervises included the hangar and a paved ramp area in front of the hangar. Thereafter, the Stuart-Jervises subleased the premises they subleased from Stavely and Taylor to Aviation Associates, Inc. This sublease agreement was also recorded in the St. Croix office of the Recorder of Deeds.

First Penn once again foreclosed on the mortgaged leasehold which was held at the time by Stavely and Taylor. The interests of Stavely and Taylor were subsequently purchased by First Penn at a U.S. Marshall Sale. On May 20, 1986, First Penn assigned all its interest in the leasehold to VIPA. It is important to note at this juncture that, at all times since subleasing from the Stuart-Jervises, Aviation has remained in possession of the subleased premises, and Aviation’s leasehold interest was not foreclosed by First Penn or any other mortgagee.

At the time of First Penn’s assignment to VIPA First Penn held all the leasehold interests of Stavely and Taylor which included two sublease agreements: the Stavely and Taylor sublease to John and Caroline Stuart-Jervis and the John and Caroline Stuart-Jervis sublease to Aviation.

After making several demands on VIPA to repair the premises subleased from the Stuart-Jervises, Aviation repaired the premises and later brought this action in May, 1987 to recover the cost of the repairs. On December 11,1987 Plaintiff filed a Motion for Summary Judgment. A copy of the motion was mailed to Defendant’s counsel and Defendant failed to respond. At a hearing on February 17,1988 this Court granted a Motion for Partial Summary Judgment to Plaintiff in the amount of Twenty-Five Thousand Four Hundred and Eighty-Three Dollars and Eighty-One Cents ($25,483.81) plus pre[29]*29judgment interest. This judgment was later vacated because Defendant did not have notice of the February 17,1988 hearing on the Motion for Summary Judgment, and VIPA’s inability to timely respond to the Motion was held by the Court as excusable neglect under the circumstances.

This Court is once again presented with motions by both parties for Summary Judgment: Plaintiff’s Motion for Summary Judgment, Defendant’s opposition thereto, and Defendant’s Cross-Motion for Summary Judgment. Giving rise to these motions are a series of lease transactions flowing from a lease entered into on February 20, 1969.

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Cite This Page — Counsel Stack

Bluebook (online)
26 V.I. 24, Counsel Stack Legal Research, https://law.counselstack.com/opinion/aviation-associates-inc-v-virgin-islands-port-authority-virginislands-1990.