London Daily

Focus on the big picture.
Saturday, May 31, 2025

Gov't Claims Victory In BVI Airways Multimillion Legal Battle

Gov't Claims Victory In BVI Airways Multimillion Legal Battle

The Government of the Virgin Islands has announced that it has successfully defeated a claim worth in excess of $10 million from those behind a project to connect Miami and Tortola with direct flights following a seven-day arbitration in March 2021.
According to the Government, in an arbitration award handed down today, 13 May 2021, the Arbitrator rejected all claims made against the BVI Government by BV Airways Inc (“BVIA”) and Colchester Aviation LLC (“Colchester”).

A release from the Government indicated that the ruling indicated that the Government of the Virgin Islands properly performed all its obligations in relation to the Project; the Government of the Virgin Islands did not breach any of the terms of the Framework Agreement; the Government of the Virgin Islands was entitled to terminate the Framework Agreement in November 2017, and there was no basis at all for the allegations of dishonesty or fraud made against the BVI Government.

In addition, the Government stated that it was found that there was no basis for the allegation of defamation and no breach of any obligations of confidentiality by the Government of the Virgin Islands.

"The Government of the Virgin Islands has been awarded its costs of defending those very serious claims (fraud and defamation) – which were described as ‘frivolous’ following cross-examination of individuals connected with Colchester and BVIA at the March 2021 hearing," the Government stated.

Commenting on the findings of the Arbitration Award, the Premier and Minister of Finance Honourable Andrew A. Fahie said, “This is an important victory for the people of the BVI. Despite being provided with significant public backing, the parties behind BV Airways failed to get a single commercial flight off the ground or to repay any of the public funds invested. This ruling ensures that no further funds will have to be paid to these parties.”

The Premier added, “I want to assure the people of the Virgin Islands that your Government will leave no stone unturned in its pursuit of the recovery of the sums paid to Colchester, BVIA and individuals connected with those companies. We are also seeking to recover the costs incurred in defending the wholly unjustified claims brought in this arbitration.”

He further stated, “Anyone legally responsible for the BVI’s loss will be held to account to the extent that the law permits; we will now move to the next phase of our recovery strategy, having successfully defended this claim.”

Premier Fahie explained that as a result, this is a very important victory for the people of the BVI, adding, “The BVI Government will not have to make any further payments to BVIA and Colchester in relation to the failed Project.”

The Government of the Virgin Islands also advanced a counterclaim based, in particular, on alleged dishonest conduct by Colchester and BVIA as a result of payments which they made to the BVI Government’s US legal counsel and agent (Mr Lester Hyman).

The Arbitrator dismissed that claim, noting however that a civil claim in the BVI Courts may result in a different outcome, “particularly since the court has investigative powers that I do not have and may be able to gather a record more robust than this arbitral record.”

Premier shared that as a result, the Government of the Virgin Islands intends to pursue the wrongdoers in the BVI Courts to recover damages and losses suffered relating to the Project.

The Government of the Virgin Islands was represented at the arbitration by George Spalton QC & Marie-Claire O’Kane of 4 New Square, London; and Martin Kenney, Andrew Gilliland, Andrew Blackburn and Hakim Creque of Martin Kenney and Co, Solicitors.

The Government of the Virgin Islands entered into a Framework agreement with BVIA and Colchester in 2015. The Government advanced $7 million to assist in the startup of the project and BVIA and Colchester undertook to provide a direct airline service between Miami and Tortola.

Despite the Government of the Virgin Islands providing the funds in accordance with its obligations under the Framework Agreement, flights between Miami and Tortola did not commence and the Government did not recover any of the funds paid in relation to the project. In November 2017 the Government terminated the Framework Agreement.

In accordance with the Framework Agreement disputes were subject to arbitration under the auspices of the American Arbitration Association, with BVI law applying to the substantive dispute. Mr Paul Klaas was appointed as arbitrator in accordance with the Commercial Arbitration Rules of the American Arbitration Association. The final hearing took place in March 2021.
Newsletter

Related Articles

0:00
0:00
Close
Satirical Sketch Sparks Political Spouse Feud in South Korea
Indonesia Quarry Collapse Leaves Multiple Dead and Missing
South Korean Election Video Pulled Amid Misogyny Outcry
Asian Economies Shift Away from US Dollar Amid Trade Tensions
Netflix Investigates Allegations of On-Set Mistreatment in K-Drama Production
US Defence Chief Reaffirms Strong Ties with Singapore Amid Regional Tensions
Vietnam Faces Strategic Dilemma Over China's Mekong River Projects
Malaysia's First AI Preacher Sparks Debate on Islamic Principles
White House Press Secretary Criticizes Harvard Funding, Advocates for Vocational Training
France to Implement Nationwide Smoking Ban in Outdoor Spaces Frequented by Children
Meta and Anduril Collaborate on AI-Driven Military Augmented Reality Systems
Russia's Fossil Fuel Revenues Approach €900 Billion Since Ukraine Invasion
U.S. Justice Department Reduces American Bar Association's Role in Judicial Nominations
U.S. Department of Energy Unveils 'Doudna' Supercomputer to Advance AI Research
U.S. SEC Dismisses Lawsuit Against Binance Amid Regulatory Shift
Alcohol Industry Faces Increased Scrutiny Amid Health Concerns
Italy Faces Population Decline Amid Youth Emigration
U.S. Goods Imports Plunge Nearly 20% Amid Tariff Disruptions
OpenAI Faces Competition from Cheaper AI Rivals
Foreign Tax Provision in U.S. Budget Bill Alarms Investors
Trump Accuses China of Violating Trade Agreement
Gerry Adams Wins Libel Case Against BBC
Russia Accuses Serbia of Supplying Arms to Ukraine
EU Central Bank Pushes to Replace US Dollar with Euro as World’s Main Currency
Chinese Woman Dies After Being Forced to Visit Bank Despite Critical Illness
President Trump Grants Full Pardons to Reality TV Stars Todd and Julie Chrisley
Texas Enacts App Store Accountability Act Mandating Age Verification
U.S. Health Secretary Ends Select COVID-19 Vaccine Recommendations
Vatican Calls for Sustainable Tourism in 2025 Message
Trump Warns Putin Is 'Playing with Fire' Amid Escalating Ukraine Conflict
India and Pakistan Engage Trump-Linked Lobbyists to Influence U.S. Policy
U.S. Halts New Student Visa Interviews Amid Enhanced Security Measures
Trump Administration Cancels $100 Million in Federal Contracts with Harvard
SpaceX Starship Test Flight Ends in Failure, Mars Mission Timeline Uncertain
King Charles Affirms Canadian Sovereignty Amid U.S. Statehood Pressure
Trump Threatens 25% Tariff on iPhones Amid Dispute with Apple CEO
Putin's Helicopter Reportedly Targeted by Ukrainian Drones
Liverpool Car Ramming Incident Leaves Multiple Injured
Australia Faces Immigration Debate Following Labor Party Victory
Iranian Revolutionary Guard Founder Warns Against Trusting Regime in Nuclear Talks
Macron Dismisses Viral Video of Wife's Gesture as Playful Banter
Cleveland Clinic Study Questions Effectiveness of Recent Flu Vaccine
Netanyahu Accuses Starmer of Siding with Hamas
Junior Doctors Threaten Strike Over 4% Pay Offer
Labour MPs Urge Chancellor to Tax Wealthy Over Cutting Welfare
Publication of UK Child Poverty Strategy Delayed Until Autumn
France Detains UK Fishing Vessel Amid Post-Brexit Tensions
Calls Grow to Resume Syrian Asylum Claims in UK
Nigel Farage Pledges to Reinstate Winter Fuel Payments
Boris and Carrie Johnson Welcome Daughter Poppy
×