Court of Appeal Victory For ParrisWhittaker In Long-Running Property Dispute

April 2022 saw ParrisWhittaker secure a significant win in the Bahamas Court of Appeal. The case (Westenhoefer v Coral Beach Management Company Ltd.) involved a decade-old dispute over the practical effects of The Law of Property and Conveyancing (Condominium) Act 1965. Partner Jacy Whittaker – representing the respondent Coral Beach Management –defeated all five grounds of appeal and succeeded in obtaining an order that substantial legal costs be met by the appellant.

ParrisWhittaker is an award-winning law firm headquartered in the Bahamas with offices in Turks and Caicos. You can get in touch with our team directly on 1-242-352-6110 and 1-242-352-6112. Alternatively, you can always contact us online.

Westenhoefer v Coral Beach Management Company Limited: A Summary

Our client, Coral Beach Management is responsible for administering and managing a large complex of residential units, many of which are rented out by individual owners as holiday accommodation. Under The Condominium Act, 1965 property like Coral Beach can be subdivided among several owners. While each owner absolutely owns his or her unit and has specified rights over other parts of the property, these are subject to his or her liability to make financial contributions towards the general maintenance of the condominium.

Such arrangements are commonplace in the Bahamas and the condominium sector makes a significant contribution to the local economy. Strict legal safeguards to ensure owners make the required financial contributions are therefore in place.

At Coral Beach the management company introduced a rule applicable to situations where an owner wished to rent out his or her property. Under the rule, the management company was authorised to deduct 25% from gross rental income to cover administration and other charges. The respondent purchased a property at Coral Beach after this rule was introduced but when he wished to rent out his property, he objected to the 25% levy.

How We Helped

Condominium Property law in the Bahamas is complex. It’s often been said that the legislation can test even the most seasoned real estate attorneys. In this case, Jacy Whittaker, armed with highly technical expertise in relation to the relevant legislation was able to convince the judge of the strength of our client’s case, presenting arguments that laid bare the practical sense of our position. Mr. Whittaker pointed out that the Coral Beach condominium is a mixed-use development and that the rules introduced by the management company ensure a degree of stability for the operation of the condominium. So long as rules like the 25% levy didn’t fall foul of the 1965 condominium legislation there was no legal reason why our client couldn’t be afforded a healthy degree of flexibility in the day to day running of the complex.

Understanding The Bahamas Market

Our Court of Appeal success demonstrates the value of local lawyers who understand the sometimes complex legislation that applies to commercial disputes here in the Bahamas. Being able to navigate the technicalities and nuances of local laws such as the condominium and condominium property legislation at the heart of the Coral Beach case can prove decisive to the outcome of disputes.

It’s worth noting that the Appeal Court judge Mr Justice Issacs mentioned the large body of cases emanating from condominium communities and the depth of feeling such disputes raise. If you are involved in a dispute similar to the Coral Beach case or any condominium property related dispute please feel free to reach out to us at ParrisWhittaker for an initial, no-obligation discussion.