Alegria loses lawsuit against C-Lounge

POSTED: 09/7/16 10:10 AM

St.maarten – Another attempt by Alegria Real Estate to evict Jimy’s NV from its property fell short in the Court in First Instance yesterday. The court rejected the requested and sentenced Alegria to pay Jimy’s expenditures of one thousand guilders for the procedure.

Jimy’s has a lease agreement for two units at the former Caravanserai Resort (now: Alegria Resort) in Beacon Hill – Le C-lounge and Thai Smile.

Alegria asked the court to order Jimy’s to evict both units within a week after the ruling and to order the company to pay around $98,000 – a sum that includes rent, maintenance fees, utility costs and late fees. Alegria told the court that Jimy’s fails to pay the rent and that the arrears for rent alone have run up to around $48,000. There is also significant damage to the building, the result of a fire on April 3 of this year and Alegria claimed that it cannot be demanded that the company repair it, considering reconstruction costs and the value of the building.

Jimy has a lease agreement that sets the rent at $3,000 per month, plus a maximum of 15 percent of this amount for maintenance.

The two restaurants were closed from June to November 2015. Alegria terminated the lease agreement on April 15, after experts had established that the building had been irreparably damaged by the fire on April 3.

The court says in its ruling that the experts of both parties have widely different opinions about the damage to the building. The court furthermore found that Alegria did not mention rent arrears as a reason for terminating the lease agreement; it only mentioned the damages caused by the fire. Since the fire, Alegria kept the counter for the rent going, while, the court noted, “it was clip and clear that Jimy’s could no longer use the premises.”

“Against this background the urgency of the demand to evict is in the air,” the court ruled, adding that Alegria insufficiently substantiated why it cannot wait for the outcome of a regular court procedure.

The court therefore denied Alegria’s eviction request.

On Friday Alegria is in court again, this time with a procedure against Momo’s Place.

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