H.I. Construction, LLC v. Bay Isles Associates, LLLP

53 V.I. 206, 2010 WL 2035591, 2010 V.I. LEXIS 93
CourtSuperior Court of The Virgin Islands
DecidedMay 14, 2010
DocketCase No. ST-09-CV-0427
StatusPublished
Cited by2 cases

This text of 53 V.I. 206 (H.I. Construction, LLC v. Bay Isles Associates, LLLP) is published on Counsel Stack Legal Research, covering Superior 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
H.I. Construction, LLC v. Bay Isles Associates, LLLP, 53 V.I. 206, 2010 WL 2035591, 2010 V.I. LEXIS 93 (visuper 2010).

Opinion

CHRISTIAN, Judge

MEMORANDUM OPINION

(May 14, 2010)

The above-captioned civil action is before the Court on Bay Isles Associates, LLLP’s Emergency Motion to Partially Dissolve Construction Lien (“Motion to Dissolve Lien”) which was filed with this Court on March 10,2010. H.l. Construction, Inc. opposes said motion. On April 23, 2010, this Court convened an evidentiary hearing on the Motion to Dissolve Lien. Both parties have submitted proposed findings of fact and conclusions of law, and filed post-hearing submissions clarifying the ownership of certain condominium units which are affected by this litigation. For the reasons set forth below, the Motion to Dissolve Lien will be granted in part and denied in part.

I. Factual background.

The facts below are based on the testimony adduced and the exhibits entered into evidence at the April 23, 2010, hearing. Defendant Bay Isles Associates, LLLP f/k/a Virgin Islands Associates, LLLP (“Bay Isles”) is a Virgin Islands business entity and the developer of the condominium project known as Grande Bay Resort (“Grande Bay”), located on St. John, Virgin Islands. As part of the Grande Bay construction process, in January of 2007, Bay Isles entered into an agreement with Plaintiff H.I. Construction, Inc. (“HIC”) to provide construction services at the Grande Bay site. Incredibly, notwithstanding the financial magnitude of the Grande Bay project, the agreement between Bay Isles and HIC was oral and never reduced to writing. The agreement between the parties was for [210]*210time and labor only, and HIC was not responsible for, and did not provide, materials for the project. The materials for the project were furnished via an entity called Breckenridge Construction, which is not a party to this litigation.

While Grande Bay was being constructed, Bay Isles dedicated the project to a condominium property regime by filing its Declaration of Condominium (“Declaration”) with the Office of the Recorder of Deeds (“Recorder’s Office”) on September 13, 2007. The Declaration has been amended four times, with the appropriate documentation being filed with the Recorder’s Office.1 The Declaration expressly places Grande Bay under the provisions of the Virgin Islands Condominium Act. [Declaration, Section 2(n), p. 3], Pursuant to the Declaration, the following parcels of real property were placed into the Grande Bay Condominium: 86-3, 86-4, 86A-3, 86A-4, 3Abc, and 3Aac, Cruz Bay Town, Cruz Bay Quarter, St. John, Virgin Islands. [Declaration, Exhibit A], Uncontested testimony at the hearing revealed that Parcels 3Abe and 3Aac have since been combined into one lot known as Parcel 3ABC.

In accordance with the oral agreement between the parties, HIC provided construction services at the Grande Bay Condominiums from January, 2007 through July 15, 2009, when Bay Isles terminated the relationship. Both parties acknowledge that Bay Isles paid HIC for all services rendered, except for those services that were provided between June 26 and July 15, 2009. When payment for those services was not forthcoming from Bay Isles, on July 31, 2009, HIC filed a Notice of Claim of Construction Lien (“First Lien Notice”) against all of the parcels dedicated to the Grande Bay Condominium, seeking payment in the amount of One Hundred Twenty Seven Thousand Three Hundred Thirty Two Dollars ($127,332.00). Attached to the First Lien Notice are three invoices which set forth the services provided by HIC, but for which Bay Isles has not tendered payment.

On September 18, 2009, HIC filed the above-captioned matter in this Court and filed a Notice of Commencement of Action Under Construction-Lien Act (“First Commencement of Action”) with the Recorder’s Office. On October 2, 2009, HIC filed a second Notice of [211]*211Claim of Construction Lien (“Second Lien Notice”) with the Recorder’s Office for the same amount, but this time asserting the lien against not only all of the parcels dedicated to the Grande Bay Condominium, but also several individually listed condominium units. The units listed on Exhibit A attached to the Second Lien Notice are “Amenities Unit, Commercial Unit 1, Commercial Unit 2, A-102, A-201, A-202, A-301, A-302, B-102, B-104, B-201, B-204, B-302, B-303, B-304, C-302, C-POl, C-02/Rooftop Terrace, C-P04/Rooftop Terrace, D-102, D-P02/Rooftop Terrace, D-P05, E-101, E-102, E-103, E-104, E-201, E-202, E-203, E-204, E-301, E-302, E-303, E-304, E-Tl/Rooftop Terrace, EPOl, and EP02.” On the same date, HIC filed an Amended Notice of Commencement of Action Under Construction Lien Act (“Second Commencement of Action”) with the Recorder’s Office.2 HIC did not release either the First Lien Notice or the First Commencement of Action when it recorded the Second Lien Notice and Second Commencement of Action. HIC also filed its Amended Complaint with this Court on October 2, 2009.3

At the April 23, 2010 hearing, the controversy centered on precisely which areas of the Grande Bay project HIC performed services between June 26 and July 15, 2009. It is clear from the testimony, and Bay Isles concedes, that HIC performed services in and around the Administration Building and Building E. This is borne out by the attachments to the First Lien Notice. It also was not disputed that the Administration Building, also referred to as the Reception Building4 and Building E are located on Parcel 3ABC. However, no one could state with certainty where upon Parcels 86-3, 86-4, 86A-3, 86A-4, Buildings A, B, C, and D are located. Further, there was disagreement on the location of a safety fence, which was removed, at least in part, by HIC as part of the contraction services it rendered during the pertinent timeframe. This item is listed on invoice [212]*212706001-124 attached to the First Lien Notice. It is of note that Thomas Eudy, of HIC, testified that the safety fence was removed for the purpose of backfilling behind the Administration Building, which is located on Parcel 3ABC.

Presently, Bay Isles has contracted with individuals to convey Units A-202 and A-301 at the Grande Bay Condominium, both of which are subject to the Second Lien Notice of HIC.5 However, Bay Isles is unable to transfer clear title in light of the recorded lien notices and notices of commencement of action. Because HIC was unwilling to provide releases of these units to allow closings to proceed, Bay Isles filed its Motion to Dissolve Lien.6 HIC, of course, opposes said motion.

Bay Isles contends that because the only construction services performed by HIC between June 26 and July 15, 2009 were to improve the Administration Building and Building E, any construction lien imposed pursuant to Virgin Islands Construction Lien Act may properly cover only those structures and Parcel 3ABC on which they sit. Bay Isles also argues that it sought, but was unable to obtain, a surety bond to secure the release of the lien as contemplated by Section 260 of that Act. Finally, Bay Isles contends the Section 908 of the Virgin Islands Condominium Act prohibits HIC’s assertion of a blanket lien against the entire Grande Bay Condominium and the units therein. Therefore, Bay Isles posits, an order should issue from this Court directing HIC to cancel its lien to the extent that it is asserted against Parcels 86-3, 86-4, 86A-3, 86A-4.

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Bluebook (online)
53 V.I. 206, 2010 WL 2035591, 2010 V.I. LEXIS 93, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hi-construction-llc-v-bay-isles-associates-lllp-visuper-2010.