Two companies that developed and own The Ritz-Carlton, Grand Cayman have been served a Writ of Summons by a creditor seeking to install its own appointed executive strata committee governing specific areas of resort’s properties.
The civil action was filed on 17 February in the Grand Court of the Cayman Islands by RC Cayman Holdings LLC against Cesar Properties Ltd. and Condoco Grand Cayman Resort Ltd as the first and second defendants, and against Michael Ryan, Frances Doud and Tony Haddad as third, fourth and fifth defendants. The action was amended through a filing on 28 February.
The action claims that pursuant to a loan agreement, an amended and restated collateral debenture and an amended and restated debenture, RC Cayman Holdings is entitled to exercise its powers of attorney over the first and second defendants. It seeks to restrain those defendants from interfering with the plaintiff’s “proper exercise of its powers of attorney”.
Against the remaining defendants, the action, among other things, seeks a declaration that the executive committee appointed by RC Cayman Holdings over five different Ritz-Carlton strata plans is valid. It also seeks a injunction against the third, fourth and fifth defendants – which it calls the Old Ex Co – “from interfering with the rights and duties of the Executive Committee.
Ritz-Carlton developer Michael Ryan issued as statement dated 29 February, stating the writ had been filed “by one of the lenders to the project and it is in relation to the lender’s rights to participate in the management of various strata corporations”.
Strata plans in the Cayman Islands are the entities that manage certain aspects of condominium projects, such as common area maintenance and improvements. Although the hotel part of The Ritz-Carlton, Grand Cayman is not part of a strata, the north and south towers of The Residences of The Ritz-Carlton, Grand Cayman are part of separate strata plans, as are the garage structures and several common areas.
Mr. Ryan said there was an issue as to whether the lender was entitled to exercise the rights it was claiming and that discussions about the dispute were ongoing.
“I can say that we do not believe that, as a result of this action, there will be any effect on the normal operations of the resort or any impact on our owners and guests,” he said. “It is hoped and expected that an agreement between the parties to resolve this matter will be concluded in the near future.”