ST. CROIX — After Carambola Golf & Country Club borrowed money from a lender in Florida and used the golf course itself as a promise it would pay it back, the lender says the golf club stopped making payments and is now suing.
The lender, Sugar Island Associates Ltd., wants the court to allow it to take and sell the golf course and use that money to pay back the debt. The lender is also requesting the court to make the golf course owners pay anything still left over.
Sugar Island Associates filed a lawsuit in the Superior Court, Division of St. Croix, seeking repayment of more than $1.5 million and the foreclosure of property connected to Carambola Golf & Country Club, also known as Carambola Golf Club.
According to a six-page complaint filed on January 15, the golf club took out a loan in 2019 for about $1.36 million, using the golf course property as collateral. Later that same year, the club borrowed two more smaller amounts — $102,000 and $50,000 — that were also backed by the same property.
Sugar Island Associates Ltd. claims Carambola Golf Club stopped making required payments, which broke the loan agreements. The lender says it declared the loans in default and demanded that the entire remaining balance be immediately paid. The lender claims it sent a written notice demanding payment in November 2025, but the golf club did not pay what was owed.
However, in a formal response filed Wednesday, Carambola Golf & Country Club denies that it defaulted under the terms alleged and disputes that Sugar Island is entitled to foreclose.
In its answer, Carambola admits it executed the July 19, 2019 promissory note in the original principal amount of $1,364,924.95 with a 6% interest rate. The club states that under the terms of the note, payments of accrued interest only were to begin “on or before December 1, 2022,” and on the same day of each calendar month thereafter. Carambola emphasizes the interest-only payment language in disputing the lender’s claims of default.
While admitting the existence of the promissory notes, Carambola denies numerous other allegations in the complaint, including claims that it failed to meet its obligations, that the lender properly accelerated the debt, and that foreclosure is warranted.
The golf club also raises several affirmative defenses. Among them, Carambola argues the complaint fails to state a claim upon which relief may be granted. It further asserts that Sugar Island’s claims are barred by waiver and by the equitable doctrines of unclean hands (a party asking a court for equitable relief must have acted fairly and honestly in the matter) and laches (which bars a claim when a party waits too long to enforce its rights and that delay unfairly harms the other party).
Carambola contends the lawsuit is barred by the six-year statute of limitations under the Virgin Islands Code. The club notes that the three promissory notes were executed in July, October, and December 2019, and argues the applicable limitations period has expired.
In its filing, Carambola asks the court to dismiss the complaint with prejudice, award attorneys’ fees, and grant any additional equitable relief the court deems appropriate.
The lawsuit was filed by attorney Kevin D’Amour, of Barnes, D’Amour & Vogel. Attorney Scot McChain, managing partner at McChain Hamm & Associates LLP, represents Carambola Golf Club.
