London Daily

Focus on the big picture.
Thursday, Oct 02, 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
Trump Administration Launches “TrumpRx” Plan to Enable Direct Drug Sales at Deep Discounts
Trump Announces Intention to Impose 100 Percent Tariff on Foreign-Made Films
Altman Says GPT-5 Already Outpaces Him, Warns AI Could Automate 40% of Work
Singapore and Hong Kong Vie to Dominate Asia’s Rising Gold Trade
Trump Organization Teams with Saudi Developer on $1 Billion Trump Plaza in Jeddah
Manhattan Sees Surge in Office-to-Housing Conversions, Highest Since 2008
Switzerland and U.S. Issue Joint Assurance Against Currency Manipulation
Electronic Arts to Be Taken Private in Historic $55 Billion Buyout
Thomas Jacob Sanford Named as Suspect in Deadly Michigan Church Shooting and Arson
Russian Research Vessel 'Yantar' Tracked Mapping Europe’s Subsea Cables, Raising Security Alarms
New York Man Arrested After On-Air Confession to 2017 Parents’ Murders
U.S. Defense Chief Orders Sudden Summit of Hundreds of Generals and Admirals
Global Cruise Industry Posts Dramatic Comeback with 34.6 Million Passengers in 2024
Trump Claims FBI Planted 274 Agents at Capitol Riot, Citing Unverified Reports
India: Internet Suspended in Bareilly Amid Communal Clashes Between Muslims and Hindus
Supreme Court Extends Freeze on Nearly $5 Billion in U.S. Foreign Aid at Trump’s Request
Archaeologists Recover Statues and Temples from 2,000-Year-Old Sunken City off Alexandria
China Deploys 2,000 Workers to Spain to Build Major EV Battery Factory, Raising European Dependence
Speed Takes Over: How Drive-Through Coffee Chains Are Rewriting U.S. Coffee Culture
U.S. Demands Brussels Scrutinize Digital Rules to Prevent Bias Against American Tech
Ringo Starr Champions Enduring Beatles Legacy While Debuting Las Vegas Art Show
Private Equity’s Fundraising Surge Triggers Concern of European Market Shake-Out
Colombian President Petro Vows to Mobilize Volunteers for Gaza and Joins List of Fighters
FBI Removes Agents Who Kneeled at 2020 Protest, Citing Breach of Professional Conduct
Trump Alleges ‘Triple Sabotage’ at United Nations After Escalator and Teleprompter Failures
Shock in France: 5 Years in Prison for Former President Nicolas Sarkozy
Tokyo’s Jimbōchō Named World’s Coolest Neighbourhood for 2025
European Officials Fear Trump May Shift Blame for Ukraine War onto EU
BNP Paribas Abandons Ban on 'Controversial Weapons' Financing Amid Europe’s Defence Push
Typhoon Ragasa Leaves Trail of Destruction Across East Asia Before Making Landfall in China
The Personality Rights Challenge in India’s AI Era
Big Banks Rebuild in Hong Kong as Deal Volume Surges
Italy Considers Freezing Retirement Age at 67 to Avert Scheduled Hike
Italian City to Impose Tax on Visiting Dogs Starting in 2026
Arnault Denounces Proposed Wealth Tax as Threat to French Economy
Study Finds No Safe Level of Alcohol for Dementia Risk
Denmark Investigates Drone Incursion, Does Not Rule Out Russian Involvement
Lilly CEO Warns UK Is ‘Worst Country in Europe’ for Drug Prices, Pulls Back Investment
Nigel Farage Emerges as Central Force in British Politics with Reform UK Surge
Disney Reinstates ‘Jimmy Kimmel Live!’ after Six-Day Suspension over Charlie Kirk Comments
U.S. Prosecutors Move to Break Up Google’s Advertising Monopoly
Nvidia Pledges Up to $100 Billion Investment in OpenAI to Power Massive AI Data Center Build-Out
U.S. Signals ‘Large and Forceful’ Support for Argentina Amid Market Turmoil
Nvidia and Abu Dhabi’s TII Launch First AI-&-Robotics Lab in the Middle East
Vietnam Faces Up to $25 Billion Export Loss as U.S. Tariffs Bite
Europe Signals Stronger Support for Taiwan at Major Taipei Defence Show
Indonesia Court Upholds Military Law Amid Concerns Over Expanded Civilian Role
Larry Ellison, Michael Dell and Rupert Murdoch Join Trump-Backed Bid to Take Over TikTok
Trump and Musk Reunite Publicly for First Time Since Fallout at Kirk Memorial
Vietnam Closes 86 Million Untouched Bank Accounts Over Biometric ID Rules
×