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VIPA, Two Hotels, Have Until Thursday to Pay Taxi Association Fines

Sept. 12, 2007 — According to a recent ruling made by U.S. District Court Judge Stanley S. Brotman, the V.I. Port Authority, Ritz-Carlton Virgin Islands and Caneel Bay Resort have a bit more time to pay $105,000 in fines imposed by Superior Court Judge Leon Kendall.
In June, Kendall found that VIPA and the two hotels had been violating the franchise operation of the V.I. Taxi Association at Cyril E. King Airport, and ordered them to pay $1,000 a day beginning March 1, "until such time as they comply with the agreement."
At a show cause hearing held last week, Kendall said the managers of the two hotels, along with VIPA Executive Director Darlan Brin, could be arrested if the fines were not paid by the "close of business" on Sept. 11.
Despite the fact that the three defendants had recently filed an appeal to overturn the ruling sent down in June, Kendall said the they were still required to pay the fine, since a motion had not been filed to "stay the ruling" until after the appeal process is complete (See "Judge Sets Monday Deadline for VIPA, Hotels to Pay").
He also issued a bench warrant for the arrest of Brad Jencks, manager of the Ritz-Carlton. While Ritz-Carlton attorney Charles Engeman argued that Jencks did not have to come to the hearing, Kendall said that he had "issued" papers requiring Jencks to make an appearance.
Following last week's hearing, VIPA, along with the two hotels, filed "emergency" motions to delay paying the fines. After an emergency hearing held at District Court on Monday, Brotman granted the motion and pushed back the payment date until Sept. 14.
In a written opinion, Brotman stated that the fines, once paid, will be put in an "interest-bearing account" until a determination is made on the appeal.
"The arrest of any personnel of the respective defendants shall also be stayed pending the determination of the appeal. Further, the bench warrant and announced imprisonment of Mr. Jencks shall be stayed pending the determination of the appeal," Brotman wrote.
Brotman also stated that the appellate court would most likely find that the "Superior Court had abused its discretion" by imposing the fines.
V.I. Taxi members have also alleged that East End Taxi Association has been violating the franchise agreement. However, Brotman ruled that no decision involving East End Taxi will be made until a hearing is held to determine the status of the association's finances.

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