Leslie F. Huntt v. The Government of the Virgin Islands

382 F.2d 38
CourtCourt of Appeals for the Third Circuit
DecidedMay 24, 1967
Docket15871
StatusPublished

This text of 382 F.2d 38 (Leslie F. Huntt v. The Government of the Virgin Islands) is published on Counsel Stack Legal Research, covering Court of Appeals for the Third Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Leslie F. Huntt v. The Government of the Virgin Islands, 382 F.2d 38 (3d Cir. 1967).

Opinion

OPINION OF THE COURT

KALODNER, Circuit Judge.

In this action by the plaintiff against, the Government of the Virgin Islands (“Government”) for specific perform *41 anee of an alleged contract to issue its revenue bonds on behalf of the plaintiff for the construction of a hotel project on the Island of St. Croix in promotion of its economy, the court below granted specific performance of the contract. This appeal followed.

The issues presented are, in broad outline, whether the court below erred (1) in transcending permissible limits of judicial action in its Judgment decreeing Government’s performance of the contract, assuming arguendo, existence of a contract, and (2) in ruling that a contract had been entered into by Government with the plaintiff.

This is the second time this case has been here. In 1964, we reversed the District Court’s entry of judgment on the pleadings, which sought specific performance or in the alternative damages, in favor of the defendant, 3 Cir., 339 F.2d 309, 311, on our view that “a full record is necessary for the determination of the issues”, and, “Assuming arguendo that it may be determined ultimately that the bonds could not be issued because prohibited by law, it does not necessarily follow that the plaintiff may not be entitled to the damages claimed by him in the alternative or some part of them.”

In the proceedings following remand, the plaintiff, by amendment to his complaint, withdrew his claim for damages and sought only to compel specific performance of the obligations of the alleged contract, i. e., to require Government to issue its revenue bonds to finance the earlier stated hotel project.

Since the instant controversy has its genesis in the Revised Organic Act of the Virgin Islands, as amended in 1958, a resolution adopted by the legislature of the Virgin Islands and subsequent legislation, their consideration is essential before we proceed to resolution of the issues presented by this appeal.

The Revised Organic Act of the Virgin Islands, as amended in 1958, in Section 8(b), 48 U.S.C.A. § 1574(b), authorized the Legislature of the Virgin Islands to “cause to be issued on behalf of said government [of the Virgin Islands] bonds or other obligations (1) for a specific public improvement or specific public undertaking authorized by an act of the legislature, and (2) for the establishment, construction, operation, maintenance, reconstruction, improvement, or enlargement of other projects, authorized by an act of the legislature, which will, in the legislature’s judgment, promote the public interest by economic development of the Virgin Islands”. It further provided that “Such bonds or obligations shall be payable solely from the revenues directly derived from and attributable to such specified public improvement, public undertaking, or other project. * * * » 1

Ostensibly pursuant to the authority granted by the 1958 amendment of the Revised Organic Act, the legislature of the Virgin Islands promulgated Resolution No. 147 on January 19, 1960. This Resolution recited that:

“Whereas Leslie F. Huntt and Associates are exploring the possibility of establishing a hotel, apartments, stores, offices, garages, and commercial space in the Virgin Islands * * * and “Whereas the Legislature of the Virgin Islands considers that such facilities if established would promote the public interest by assisting in the economic development of the Virgin Islands; Now, Therefore
“Be it Resolved by the Legislature of the Virgin Islands, that the issuance of revenue bonds or other obligations pursuant to § 8(b) of the Revised Organic Act of the Virgin Islands is hereby authorized for the purpose of establishing the facilities described above, provid *42 ing specific plans therefor are approved by the Legislature, and providing that the development created thereby shall promote the public interest by economic development of the Virgin Islands.”

The Resolution concluded with the statement that:

“On approval of said plans, the Legislature will take steps as are necessary to implement § 8(b) of the Revised Organic Act of the Virgin Islands to provide funds by the issuance of revenue bonds or other obligations for the establishment of said facilities.”

Subsequently, the Legislature passed Act No. 577 (approved June 3, 1960). This Act referred to Resolution No. 147 as having authorized the issuance of revenue bonds pursuant to Section 8(b) of the Revised Organic Act, as amended, for the purpose of establishing a hotel, etc. in the Virgin Islands by Leslie Huntt and Associates, and stated that: “ * * * it is the judgment of the Legislature that such facilities will promote the public interest by economic development of the Virgin Islands.” The Act provided that issuance of bonds, in accordance with Section 8(b), in the amount of $3,000,000, for the purpose of establishing, constructing, operating and maintaining a hotel, etc. by Leslie Huntt and Associates “is hereby authorized and approved,” and that “The Commissioner of Finance upon approval of the Governor of the Virgin Islands is directed and authorized to take such steps as are necessary to issue the bonds herein authorized * * * upon application by Leslie Huntt and Associates or such corporation as may be designated by Leslie Huntt and Associates.”

Thereafter, the Legislature passed Act No. 743 (approved June 12, 1961), which provided that “notwithstanding” several Acts, including Act No. 577 “all authorizations for the issuance of bonds or other obligations heretofore or hereafter approved by the Legislature pursuant to section 8(b) of the Revised Organic Act of the Virgin Islands shall be effectuated in accordance with rules and regulations prescribed by the Commissioner of Finance and approved by the Governor” (emphasis supplied). Act 743 further provided that: “Subject to the provisions of the said section such rules and regulations shall provide for the issuance of appropriate certificates of tax exemption to the beneficiaries issuing the bonds or other obligations, and for the designation in the case of private beneficiaries of trustees to protect the interests of the Government of the Virgin Islands.”

Subsequently, by Act No. 850 (approved March 16, 1962), the Legislature specifically repealed the foregoing Acts and all other Acts “relating to or authorizing the issuance of bonds or other obligations heretofore approved by the Legislature pursuant to Section 8(b) of the Revised Organic Act of the Virgin Islands * *

The District Court found, as “facts”, that Resolution No. 147 evidenced the Legislature’s “intention to authorize to Leslie F. Huntt and Associates the issuance of government bonds or other obligations for the construction of a hotel project in the Virgin Islands”; that plaintiff, relying on this Resolution, employed an architect and caused plans to be prepared and submitted to the Legislature for approval; that as a result of plaintiff’s efforts having met the approval of the Legislature, Act No. 577 “came into being”; that Act No.

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Bluebook (online)
382 F.2d 38, Counsel Stack Legal Research, https://law.counselstack.com/opinion/leslie-f-huntt-v-the-government-of-the-virgin-islands-ca3-1967.