Great Bay Inc. v. The Neighborhood Assoc. Inc.

CourtSupreme Court of The Virgin Islands
DecidedJune 29, 2026
DocketSCT-CIV-2022-0002
StatusPublished

This text of Great Bay Inc. v. The Neighborhood Assoc. Inc. (Great Bay Inc. v. The Neighborhood Assoc. Inc.) 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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Great Bay Inc. v. The Neighborhood Assoc. Inc., (virginislands 2026).

Opinion

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IN THE SUPREME COURT OF THE VIRGIN ISLANDS GREAT BAY CONDOMINIUM OWNERS ) S. Ct. Civ. No. 2022-0002 ASSOCATION, INC. ) Re: Super. Ct. Civ. No. 768/2018 Appellant/Defendant, ) (STT) ) v. ) Consolidated Cases ) S. Ct. Civ. No. 2022-0002 THE NEIGHBORHOOD ASSOCIATION, ) S. Ct. Civ. No. 2022-0024 INC. ) Appellee/Plaintiff. ) )

On Appeal from the Superior Court of the Virgin Islands Division of St. Thomas and St. John Superior Court Judge: Hon. Renee Gumbs-Carty

Considered: November 9, 2022 Filed: June 29, 2026

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

APPEARANCES:

W. Mark Wilczynski, Esq. Law Office of W. Mark Wilczynski, P.C. St. Thomas, U.S.V.I.

David F. Wentzel, Esq. Wentzel Law Offices Chicago, IL Attorneys for Appellant,

Maria Tankenson Hodge, Esq. Hodge & Hodge St. Thomas, U.S.V.I. Attorney for Appellee.

OPINION OF THE COURT

CABRET, Associate Justice. Great Bay Condominium Owners Ass’n v. 2026 VI 15 Neighborhood Ass’n S. Ct. Civ. No. 2022-0002 Opinion Page 2 of 23

¶1 Great Bay Condominium Owners Association, Inc. (“Great Bay”) appeals the Superior

Court’s April 11, 2022 interlocutory order granting a preliminary injunction to the

Neighborhood Association, Inc. (“NA”). The Superior Court’s order enjoined Great Bay from

issuing assessments to NA Members for past due common area charges and maintenance

expenses associated with a commercial condominium unit at the Ritz-Carlton Club in St.

Thomas, referred to as (“CU-1”) for the years 2017, 2018, and 2019. For the reasons that

follow, we affirm the Superior Court’s decision that imposed a preliminary injunction upon

Great Bay.

I. FACTUAL AND PROCEDURAL BACKGROUND

¶2 On May 31, 2002, the owner of the Ritz-Carlton Hotel in St. Thomas (the “Developer”),

executed and recorded a “Declaration Establishing a Plan for Condominium Ownership” (the

“Declaration”) to build four buildings, designated A through D, containing approximately 80

residential condominium units. On the same day, the owner recorded the “Supplementary

Declaration of Condominium for the Club at Great Bay Condominium” (the “Club

Declaration”), which created a fractional form of ownership that divided each of the residences

into twelve “Residence Interests.” Id. Each Residence Interest provides the owner (a “Club

Member”) the exclusive use of the residence for a 21 day period. Buildings A through D

encompass 960 residential interests.

¶3 In 2005, after buildings A through D were completed, the Developer submitted two

additional buildings to the condominium development. The Developer first submitted

Heliconia (“Building H”) through the “Fourth Amendment to Declaration,” which it executed

on November 15, 2005, and recorded on December 9, 2005. Seven months later, the Developer

submitted Gardenia (“Building G”) through the “Fifth Amendment to Declaration,” which it

executed on June 6, 2006 and recorded on July 18, 2006. On the top floor of Building G, the Great Bay Condominium Owners Ass’n v. 2026 VI 15 Neighborhood Ass’n S. Ct. Civ. No. 2022-0002 Opinion Page 3 of 23

developer created a Commercial Unit (“CU-1”) for the purposes of providing food and

beverage services to the residents of Buildings H and G. Buildings H and G have “Two

Bedroom Suites.”

¶4 Great Bay is a large condominium association representing the owners of all

condominium interests in the Ritz-Carlton Hotel complex. NA is a comparatively smaller

condominium association within Great Bay which represents only the owners of interests in

buildings H and G, and consists of 288 owners. NA was initially established in 2005 for the

sole purpose of owning and operating CU-1 and providing food and beverage services for the

exclusive benefit of occupants of the Two Bedroom Suites in Buildings H and G. All owners

of the residences that are designated as Two Bedroom Suites are members of Great Bay and

must also be members of NA.

¶5 On December 20, 2008, the Developer executed a Condominium Deed conveying CU-

1 in fee simple absolute to NA. However, NA began operating and paying for all the costs and

expenses associated with CU-1 from 2006 through 2016. Great Bay assessed charges for the

CU-1 to NA and NA would issue individual assessments to each of its members. Therefore,

the food and beverage services provided at CU-1 were financed by the NA members, and in

return, those members were given the exclusive benefit of those services.1 As a result, NA

1 Item 5 of the Fifth Amendment to Declaration provides:

All Owners of Residences that are designated as a Two Bedroom Suite shall, in addition to being Members of the Condominium Association, be mandatory members of the Neighborhood Association whose sole purpose is to own and operate Commercial Unit CU-1, which shall be conveyed by Declarant to the Neighborhood Association and utilized for the exclusive benefit of the occupants from time to time of the Two Bedroom Suites, whether or not such occupants are Members of the Neighborhood Association, and as more particularly described in the organizational and governing document of the Neighborhood Association. As a member of the Neighborhood Association, Owners of Two Bedroom Suites are responsible for all costs and expenses of the ownership and operation of Commercial Unit CU- 1, including but not limited to any services that it may elect to provide. The furnishings located in the Commercial Unit, meaning all furniture, appliances, moveable equipment, utensils, carpeting, accessories, and other personal property located therein, were previously utilized in connection with the operation of the adjacent Ritz-Carlton Hotel. Great Bay Condominium Owners Ass’n v. 2026 VI 15 Neighborhood Ass’n S. Ct. Civ. No. 2022-0002 Opinion Page 4 of 23

members paid two levels of annual assessments: first, their proportionate share of the common

expenses paid by all members of Great Bay based on the percentage ownership allocation of

their ownership interest; and second, their proportionate share of expenses relating to CU-1

including both the cost of food and beverage services and CU-1’s share of the annual common

maintenance expenses.

¶6 On September 10 and 11, 2017, Great Bay and NA were negotiating the Deed Transfer

Agreement’s terms and conditions via email transferring CU-1 from the NA to Great Bay.

During the course of this correspondence, Great Bay notified NA it would only accept an

unrestricted deed with no condition or option that would revert CU-1 back to NA if CU-1 was

no longer a restaurant offering food services. Great Bay also requested that NA transfer to

Great Bay settlement funds held by NA which were derived from litigation initiated by NA and

Great Bay over defective design and construction of renovations to CU-1. Great Bay intended

to use these funds for CU-1. Great Bay informed NA that those conditions must be met on or

before November 1, 2017, or NA would be responsible for the 2017 maintenance fees and

assessments. On September 20, 2017, despite not reaching an agreement on the conditions

established by Great Bay, NA’s President Salvatore M. Cutrona, Sr., executed a condominium

deed transferring CU-1 to Great Bay. However, on November 2, 2017, Abigail Chung, then-

Vice President of Great Bay, rejected NA’s tender of the CU-1 deed because NA had not

complied with the conditions outlined in the September 11, 2017 email.

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