Estate Chocolate Hole Landowners' Associate Inc. v. Cenni

2024 V.I. 20
CourtSupreme Court of The Virgin Islands
DecidedApril 23, 2024
DocketSCT-CIV-2023-0015
StatusPublished
Cited by4 cases

This text of 2024 V.I. 20 (Estate Chocolate Hole Landowners' Associate Inc. v. Cenni) 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.

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Estate Chocolate Hole Landowners' Associate Inc. v. Cenni, 2024 V.I. 20 (virginislands 2024).

Opinion

For Publication

IN THE SUPREME COURT OF THE VIRGIN ISLANDS ESTATE CHOCOLATE HOLE ) S. Ct. Civ. No. 2023-0015 LANDOWNERS’ ASSOCIATION, INC., ) Re: Super. Ct. Civ. No. 383/2015 (STT) Appellant/Plaintiff, ) ) v. ) ) ADRIAN CENNI and MAX ARC, LLC, ) Appellees/Defendants. )

On Appeal from the Superior Court of the Virgin Islands

Argued: November 14, 2023 Filed: April 23, 2024

BEFORE: RHYS S. HODGE, Chief Justice; MARIA M. CABRET, Associate Justice; and IVE ARLINGTON SWAN, Associate Justice.

Malorie Winne Diaz, Esq. Gregory Adam Thorp, Esq. (argued) Dudley Rich LLP St. Thomas, U.S.V.I. Attorneys for Appellant,

J. Daryl Dodson, Esq. Moore Dodson Russell & Wilhite, P.C. St. Thomas, U.S.V.I. Attorney for Appellees.

OPINION OF THE COURT HODGE, Chief Justice.

¶1 The Estate Chocolate Hole Landowners’ Association Inc. (“ECHLA”) appeals from the

Superior Court’s February 28, 2023 judgment which, for reasons given in findings of fact and

conclusions of law entered on December 29, 2022, found that Adrian Cenni and Max Arc, LLC

possessed an implied easement permitting them to develop a road suitable for vehicular access on Estate Chocolate Hole v. Cenni 2024 VI 20 S. Ct. Civ. No. 2023-0015 Opinion of the Court Page 2 of 16

a parcel owned by the ECHLA. For the reasons that follow, we affirm the judgment below.

I. BACKGROUND

¶2 Arsene Massac acquired title to all the land that comprises Estate Chocolate Hole in St.

John by deed of conveyance recorded on September 22, 1950. Over the next several decades,

Massac developed the property and subdivided it into separate lots which he then sold to various

individuals. In 1962, Massac filed a drawing with the Cadastral Division of the Department of

Public Works—P.W.D. Drawing No. D9-325-T62 (hereafter “T62”)—which depicted a road, later

designated as Parcel 557 (also referred to as the “Access Road”), that led to Parcel 186—

designated as the “Hart Bay Community Beach Park”— and which abutted numerous lots,

including the land that would eventually become Parcels 501 and 502.

¶3 When Massac sought to construct a condominium complex in 1985, several owners of the

subdivided lots sued him in the District Court of the Virgin Islands (the “Bachman litigation”).

After its formation, the ECHLA intervened in the Bachman litigation, and recorded notices of lis

pendens on the land owned by Massac, including the land that would eventually become Parcels

501 and 502. The ECHLA ultimately entered into a settlement agreement with Massac, which it

also recorded with the Recorder of Deeds. This settlement agreement required Massac, among

other things, to develop a new subdivision plan, and to convey to the ECHLA “all road rights of

way to existing and proposed roads as shown on a Plan of Subdivision of Estate Chocolate Hole –

1985 to be attached as Exhibit 2 to this Agreement.” However, the settlement agreement did not

contain any document labelled as “Exhibit 2.”

¶4 The settlement agreement also set forth the characteristics of this plan, which included a

sentence providing that “[t]he Plan shall eliminate the two roadways to the beach of Lot 186,

except that an undeveloped right of way shall continue to exist.” And while the settlement Estate Chocolate Hole v. Cenni 2024 VI 20 S. Ct. Civ. No. 2023-0015 Opinion of the Court Page 3 of 16

agreement provided for Massac to record this plan, no plan was developed or recorded.

¶5 In accordance with the settlement agreement, Massac executed two quitclaim deeds, both

dated June 3, 1986, one of which conveyed Parcel 186 to the ECHLA, and another (hereafter the

“Roads Deed”) which conveyed “all the private estate roads located in the subdivision of Estate

Chocolate Hole” to the ECHLA, as shown on a map “dated July, 1973, No. 911 . . . exempting

therefrom all roads shown hereon with red bordering.” This map, however, was not attached to

the Roads Deed.

¶6 The ECHLA failed to record either of these quitclaim deeds. Rather, the ECHLA, through

its counsel, requested that Massac complete a new survey, given that in the deed “reference is

made to a surveying map that is not available.” Massac, however, never completed this survey or

produced a plan, which led to more than a decade of proceedings in the Bachman litigation seeking

to enforce the settlement agreement, which commenced with a January 15, 1987 motion by the

ECHLA to enforce the agreement. Ultimately, the Bachman parties entered into a March 14, 1995

consent judgment in which they agreed that the ECHLA would prepare the subdivision plan itself.

The plan prepared by the ECHLA designated the access road as “Parcel 557 Undeveloped Right

of Way” with a notation stating, “roadway eliminated per 5(a) of ‘Settlement Agreement.’” The

ECHLA recorded the consent judgment, and on January 7, 1999 filed a “Satisfaction of Judgment”

with the District Court in the Bachman case. The next day, January 8, 1999, the ECHLA recorded

a “Release of Settlement Agreement” that resulted in the Recorder of Deeds marking the

previously recorded settlement agreement on Parcel 501 as “cancelled.”

¶7 During the pendency of the proceedings to enforce the settlement agreement in the

Bachman litigation, Massac continued to subdivide and sell parcels. He hired surveyor Barry

Hurst to prepare and register official drawing P.W.D. D9-325-T89 (hereafter “T89”), which Estate Chocolate Hole v. Cenni 2024 VI 20 S. Ct. Civ. No. 2023-0015 Opinion of the Court Page 4 of 16

established two residential parcels designated as Parcels 501 and 502 from Parcel 557 with the

remaining parcel designated as Parcel 557 Remainder. The official drawing shows a vehicular

turnaround and parking area designated for use by both parcels as “Easement A.” On April 21,

1989, Massac executed a warranty deed that conveyed an undivided one-half interest in Parcel 501

to Carol Galat Hurst in common with an undivided one-half interest in Parcel 501 to Sinda J. Galat

and Edward W. Galat (collectively “the Galats”), which was recorded on May 5, 1989. Shortly

after the conveyance, the ECHLA, at the Galats’ request, provided a May 3, 1989 cancellation of

the lis pendens on Parcel 501, which was recorded on May 8, 1989.

¶8 After the purchase, the ECHLA and the Galats repeatedly discussed the possibility of

developing Parcel 557 to allow for vehicular traffic. The ECHLA, however, repeatedly declined

these requests, and in 1994 constructed stone steps on Parcel 557 right above the boundary of

Parcel 501 to assist walkers with a steep and muddy portion of the Access Road to the beach.

¶9 On April 1, 2003, the Galats conveyed their interest in Parcel 501 by warranty deed to

Carol Hurst and Jane Crowe, who shortly thereafter entered into a contract with Trip Stewart to

purchase Parcel 501. Around this time, Cenni—the current owner of another parcel at Estate

Chocolate Hole, and the sole member of Max Arc—learned of Stewart’s contract, and executed a

“Partial Assignment and Assumption of Contract” on December 22, 2023, in which Stewart

assigned to Cenni the right to purchase Parcel 501 to Max Arc. Ultimately, Max Arc purchased

Parcel 501 on May 26, 2004.

¶ 10 Nearly a year later, Cenni began to explore the possibility of developing the Access Road

on Parcel 557 for vehicular access. At a May 31, 2005 meeting of the ECHLA Board of Directors,

Cenni requested the ECHLA’s assistance in obtaining approval of a Coastal Zone Management

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2024 V.I. 20, Counsel Stack Legal Research, https://law.counselstack.com/opinion/estate-chocolate-hole-landowners-associate-inc-v-cenni-virginislands-2024.