June 15, 2006 – Superior Court Judge Leon Kendall has ruled that the V.I. Port Authority, the Ritz-Carlton St. Thomas and Caneel Bay Resort are violating the franchise operation of the V.I. Taxi Association at Cyril E. King Airport. He has fined each up to $100,000.
Kendall announced his ruling in a release dated Wednesday.
The association has an agreement with VIPA for franchise rights at the airport, with the exception of "prepaid or packaged tours of $50 or more" that include a night's lodging.
Passengers having these agreements typically have a voucher. It is these vouchers that the Taxi Association claims are being mishandled in violation of its agreement with VIPA.
Kendall ruled that the violations stem from "the systematic abuse of the voucher [that] arriving passengers were required to present to prove that they have prepaid their transportation, and could be transported by non-V.I. Taxi Association vehicles."
The tangle between the association and independent operators has a history stretching over the last 15 years. It has been in court, on and off, since 1987, when the Legislature – in Act 5231 – gave the taxi association an exclusive franchise at the airport, which runs through June 30, 2007.
Exempt from the ruling, along with the voucher passengers, are people departing by foot; by privately owned motor vehicles; or by rental car.
In other words, if you want a taxi and don't have one of the controversial vouchers, you have no other option than to use V.I. Taxi Association vehicles.
In 1997, the Taxi Association filed a lawsuit in Territorial Court claiming its franchise was being violated by VIPA, the East End Taxi Association, the Ritz-Carlton, Caneel Bay Resort and Freddy Lettsome.
According to Kendall, Judge Soraya Diase entered a preliminary injunction at that time against all the defendants, and other non-association members, forbidding them from operating a public taxi from the airport.
In 2005, Kendall says, the association filed another lawsuit, claiming VIPA – which is charged with ensuring the franchise is honored – had permitted violations of the franchise. VIPA was held in contempt of court and placed on notice regarding further violations of the injunction. No sanctions were imposed.
In March this year a Show Cause hearing was held before Kendall. He said all defendants, except Lettsome, "for whom no evidence was adduced," were found to be in contempt. (Kendall's ruling does not identify Lettsome, and Kendall makes no mention in his release of the fate of the East End Taxi Association, which is not named in the current action.)
Kendall ordered the other three defendants – VIPA, Ritz-Carlton St. Thomas and Caneel Bay – to pay $1,000 a day beginning March 1, "until such time as they comply with Act 5231."
Kendall says in the release, "After repeated attempts by the association to meet with the Port Authority to amend the voucher system ended in deadlock and empty promises, the V. I. Taxi Association resorted to the court once more to vindicate its rights to the exclusive franchise."
He further says the court will appoint a Special Master to monitor the defendants' compliance.
Attempts to reach VIPA Executive Director Darlan Brin were not successful Thursday. Carole Henneman, VIPA spokeswoman, said Brin had just returned to the island and would want to speak with his legal advisors before making comment.
V.I. Taxi Association President Winston Parker was not available Thursday afternoon. The amount the association presumably loses from the voucher issue is not known.
Ritz-Carlton and Caneel Bay attorney Charles Engeman said he could not comment on the matter at this time.
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