Sea Air Shuttle Corp. v. Virgin Islands Port Authority

26 V.I. 64, 1991 WL 11818235, 1991 V.I. LEXIS 8
CourtSupreme Court of The Virgin Islands
DecidedFebruary 13, 1991
DocketCivil No. 41/1991
StatusPublished
Cited by1 cases

This text of 26 V.I. 64 (Sea Air Shuttle Corp. 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
Sea Air Shuttle Corp. v. Virgin Islands Port Authority, 26 V.I. 64, 1991 WL 11818235, 1991 V.I. LEXIS 8 (virginislands 1991).

Opinion

CABRET, Judge

MEMORANDUM OPINION AND ORDER

This matter is before the Court upon the motion of the Defendant, Virgin Islands Port Authority (hereafter referred to as “Port Authority”), to dismiss this action for lack of subject matter jurisdiction. Because the Court has concluded that the amount in controversy of this case exceeds $200,000, the jurisdictional limit of this Court, the Port Authority’s motion will be granted and Plaintiffs’ complaint shall be dismissed.

FACTS

The facts, briefly stated for purposes of the motion, are as follows:

The Defendant, Port Authority is a public corporation and autonomous governmental instrumentality of the Government of the Virgin Islands. Pursuant to 29 V.I.C. § 543, the purpose of the Port Authority is to establish, acquire, construct, develop and improve, own, operate and manage any and all types of air and marine terminals.

In the early part of 1990, the Port Authority distributed a Request for Proposal for the stated purpose of establishing a seaplane shuttle service at the Port Authorities existing St. Croix and St. Thomas seaplane facilities. Several proposals were submitted, and a committee drawn from Port Authority staff reviewed the proposals and presented three to the Governing Board of the Port Authority. The three proposals were those of Caribbean Airboats, Inc. (hereafter referred to as “Caribbean Airboats”), American Aircraft Management Company, and Caribbean Airlines Services, Inc. (hereafter referred to as “Caribbean Airlines”).

After an opportunity to review the three proposals, oral presentations from each of the parties involved, and a hearing on the backgrounds of the principals of the three entities the Governing Board voted to negotiate with Caribbean Airboats for the lease of the seaplane facilities. Thereafter, Sea Air Shuttle Corporation and Sea Air Shuttle Corporation of the Virgin Islands (hereafter collectively referred to as “Plaintiffs”) filed this action for declaratory and injunc[66]*66tive relief, claiming that they are the predecessors in interest to Caribbean Airlines.

The Plaintiffs allege that the decision of the Governing Board to negotiate the lease of seaplane facilities with Caribbean Airboats was arbitrary and capricious, and deprived them of their right to be treated fairly. They also allege that the decision deprived them of their civil rights. In support of their allegation that the Governing Board acted arbitrarily and capriciously, the plaintiffs argue that they have, among other things, spent over $450,000 in start up costs, hired 15 employees, bought or leased four seaplane aircraft, completed all required flight training, purchased a Federal Aviation Administration Carrier operating Certificate, and have invested over $1 million to purchase the assets of the former Virgin Islands Seaplane Shuttle. Plaintiffs have proposed paying the Port Authority $150,000 per year for five years in order to lease seaplane facilities on St. Thomas and St. Croix. As part of their proposal they also offer to construct airport facilities costing $12 million. Plaintiffs further allege that Caribbean Airboats, with whom the Port Authority has decided to negotiate, has no planes, no flight training, no pilots, no employees, no equipment, no Federal Aviation Administration approval, and has even proposed a lesser annual payment to the Port Authority for the lease of seaplane facilities.

DISCUSSION

Defendant Port Authority claims that this action should be dismissed because the Court does not have subject matter jurisdiction since the amount in controversy exceeds $200,000, the jurisdictional limit of this Court. On the other hand, the Plaintiffs allege that the subject matter jurisdiction of this court is predicated upon the loss of a right to be treated fairly in the bidding process. The loss of this right, they assert, is not susceptible to a dollar figure, therefore declaratory and injunctive relief is the only available remedy.

With regard to the declaratory relief, the Virgin Islands Declaratory Judgment Act states as follows:

Courts of record within their respective jurisdictions shall have power to declare rights, status, and other legal relations whether or not further relief is or could be claimed. No action or proceeding shall be open to objection on the ground that a declaratory judgment or decree is prayed for. The declaration may be either affirmative or negative in form and effect; and such [67]*67declarations shall have the force and effect of a final judgment or decree.

5 V.I.C. § 1264 (emphasis added). It is well settled in the Virgin Islands that the Declaratory Judgment Act (hereafter referred to as the “Act”), is remedial in nature, and it in no way extends the jurisdiction of the Territorial Court. Puerto Rican-American Insurance Co. v. Francis, 17 V.I. 87 (Terr. Ct. 1980). Thus, the Act provides a judicial remedy in actions that are otherwise within the Territorial Court’s jurisdiction. Id. Consequently, actions under the Act require an independent jurisdictional source. Id.; Richardson v. Virgin Islands Housing Authority, 18 V.I. 351 (Dist. Ct. 1981).

With regard to both declaratory and injunctive relief, a source of independent jurisdiction for this Court is found in the provisions of 4 V.I.C. § 76. Section 76(a), applicable to this case, provides as follows:

The territorial court shall have original jurisdiction concurrent with that of the district court in all civil actions wherein the matter in controversy exceeds the sum of $500 but does not exceed the sum of $200,000; to supervise and administer estates and fiduciary relations; to appoint and supervise guardians and trustees; to hear and determine juvenile, divorce, annulment and separation proceedings; to grant adoptions and changes of name; to establish paternity; to legitimize children and to make orders and decrees pertaining to the support of relations.

Since this case is a civil action, this Court may exercise subject matter jurisdiction only if the amount in controversy does not exceed $200,000.1

At the outset it should be noted that Plaintiffs argue that in considering this motion to dismiss, the Court must accept as true the well pleaded allegations in the Complaint.2 The argument is not entirely correct. A motion to dismiss under Fed. R. Civ. P. 12(b)(1) ei[68]*68ther attacks the complaint on its face or attacks the subject matter jurisdiction in fact. Kronmuller v. West End Fire Co. No. 3, 123 F.R.D. 170 (E.D. Pa. 1988). In the former, courts are required to accept a plaintiff’s allegations as true, but in a Rule 12(b)(1) motion that attacks the court’s subject matter jurisdiction in fact, “no presumptive truthfulness attaches to plaintiff’s allegations, and the existence of disputed material facts will not preclude the trial court from evaluating for itself the merits of jurisdictional claims.” Mortensen v. First Federal Savings and Loan Association, 549 F.2d 884, 891 (3rd Cir. 1977).

The party asserting jurisdiction has the burden of proving that jurisdiction does in fact exist, but generally, the sum claimed by the plaintiffs, if made in good faith, controls the determination of the amount in controversy. Browne v. Government, 23 V.I.

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Cite This Page — Counsel Stack

Bluebook (online)
26 V.I. 64, 1991 WL 11818235, 1991 V.I. LEXIS 8, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sea-air-shuttle-corp-v-virgin-islands-port-authority-virginislands-1991.