The Superior Court of the Virgin Islands ruled that a catering company cannot demand a jury trial in its dispute with a financial center. This decision affects Deep End Catering Company, LLC, which had filed a lawsuit against St. Croix Financial Center, Inc. The court found that the catering company had waived its right to a jury trial through a clause in their lease agreement.

The case, Deep End Catering Company, LLC v. St. Croix Financial Center, Inc., was filed under docket number SX-2021-CV-00490. The ruling came after a series of motions and responses regarding the jury trial demand. The decision is significant as it clarifies the enforceability of jury trial waivers in commercial leases in the Virgin Islands.

Background

Deep End Catering Company, LLC, owned by Elena Hensley, was a tenant at a restaurant property owned by St. Croix Financial Center, Inc., now known as Tamarind Reef Resort and Marina, Inc. The dispute arose when Deep End alleged that St. Croix Financial Center improperly charged it for various expenses, including electrical and garbage fees. Additionally, Deep End claimed that the financial center demanded it vacate the premises by December 15, 2021.

The business relationship between the two parties began in November 2015 when they entered into a five-year commercial lease agreement. This lease included a clause waiving the right to a jury trial in any disputes arising from the lease. When the catering company filed its complaint in June 2021, St. Croix Financial Center moved to strike the jury demand, arguing that the waiver in the lease was valid.

The Ruling

Judge Ernest Morris presided over the case and ultimately ruled in favor of St. Croix Financial Center. The court found that the jury trial waiver in the lease agreement was enforceable. The judge noted that both parties had the opportunity to negotiate the terms of the lease and that the waiver clause was conspicuous within the document.

The court stated, "the waiver provision was conspicuous, both parties possessed significant business acumen and experience, both parties were represented by counsel, the parties had the ability to negotiate regarding the waiver provision, both parties had significant bargaining power..."

As a result, the court granted St. Croix Financial Center's motion to strike the jury demand. The judge also denied Deep End's request to file a sur-response to the motion, indicating that the issues had been sufficiently addressed. The ruling emphasized that the waiver must be knowing and voluntary, which the court found to be the case here.

Impact

This ruling has important implications for businesses in the Virgin Islands. It establishes that jury trial waivers in commercial leases can be upheld, provided that they are made knowingly and voluntarily. This decision could influence future contracts and disputes involving similar waiver clauses.

The court's decision aligns with the majority of jurisdictions in the United States, which generally allow such waivers. By affirming the enforceability of the waiver, the ruling may encourage businesses to include similar clauses in their contracts, potentially streamlining dispute resolution processes.

What's Next

Deep End Catering Company has the option to appeal the ruling, but details about any potential appeal were not available in the court filing. The case highlights the ongoing legal discussions regarding the rights of tenants and the enforceability of contractual agreements in the Virgin Islands.