ST. THOMAS – The eviction case between the government of the Virgin Islands and Island Laundries Ltd. has been transferred to the Civil Division of the Superior Court of the Virgin Islands, after Magistrate Judge Paula Norkaitis ruled that Island Laundries had raised a good faith claim of right to the property.
“This case requires procedures not available to the magistrate court,” Norkaitis said during today's hearing, adding that additional discovery was clearly necessary. “There are too many unanswered questions.”
This ruling complicates a deal between the government and the Virgin Islands Port Authority that, according to draft legislation, would transfer multiple parcels of government owned land in Subbase to VIPA, including Parcels Nos. 164 and 116 leased to Island Laundries for a redevelopment project with Royal Caribbean on St. Thomas.
READ MORE: Island Laundries puts wrinkle in VIPA expansion plans, eviction case reveals fauly gov’t oversight
Island Laundries has leased these parcels from the government for at least three decades. In its challenge to the eviction, the company argued that certain rights to the property rested with Island Laundries due to required improvements it says it made to the property in excess of $1 million dollars 30 years ago.
Appearing virtually at today’s hearing, Assistant Attorney General Christopher Timmons argued this claim of equitable interest in the property was contrary to the law and that Island Laundries was a holdover tenant trying to “muddy the water."
“In the words of Shakespeare, the lady doth protest too much,” Timmons said in his closing arguments, adding that the defense had argued the eviction proceeding like it was a capital murder case.
Joseph Arellano, who represents Island Laundries, countered that the court lacked jurisdiction, as it was a complicated case to right of possession based on a clause pertaining to title of improvements in the expired 1984 lease agreement.
“You don’t have to take our side,” Arellano said. “You merely need to recognize the bona fide good faith claim of right.”
After hearing closing arguments, Norkaitis ruled that Island Laundries had indeed raised a colorable defense and that the need for Island Laundries to conduct discovery outweighed the government’s need to recover possession of the property.
“Litigation is needed to extinguish this cloud on the title,” Norkaitis said.
Leah Webster, president of Island Laundries, told WTJX the company was pleased with the court’s decision.
“We feel it was a recognition of the complexity of this case and the legitimacy of us as tenants/co-owners,” Webster wrote in a text to WTJX following the hearing. “As we move into a Civil dispute we look forward to the ability to explore areas of our interactions and relationship with the government which were outside the jurisdiction of the magistrate. At the end of the day, we are simply trying to be good stewards to the St. Thomas community and provide jobs and an essential service. That has been and will remain our primary focus.”
