Court of Appeal Rules Against Barbuda Council in Rent Dispute with PLH

The Eastern Caribbean Court of Appeal has dismissed an appeal brought by the Barbuda Council against PLH (Barbuda) Ltd, affirming a lower court’s decision that the developer is not liable for millions in alleged unpaid rent under a 99-year lease agreement.

The case centered on whether a US$5 million contribution made by PLH toward the construction of a new airport on Barbuda should be treated as prepaid rent under two leases signed in 2017.

The Barbuda Council argued that the funds only applied to one lease covering 174 acres at Low Bay, while PLH, represented by Anthony Astaphan, SC and Dr. Errol Cort, successfully maintained that the prepayment also covered rents due under a second lease for 425 acres at Pink Sands.

In 2017, the Government of Antigua and Barbuda, with the consent of the Barbuda Council, entered into two long-term leases with PLH for land at Low Bay and Pink Sands as part of a major luxury tourism project. Alongside the leases, the parties executed a Memorandum of Agreement (MOA) and an Airport Escrow Agreement (AEA), requiring PLH to deposit US$5 million into a fund to support airport construction.

The Barbuda Council, represented by Ann Henry and Mr. Lenworth Johnsonlater claimed that PLH failed to pay US$900,000 in rent under the 425-acre lease, prompting legal action in 2023. PLH countered that the MOA clearly provided for the US$5 million payment to be credited as advance rent under both leases.

The High Court sided with PLH in 2024, ruling that the contractual documents, when read together, allowed the developer to set off rent obligations against its escrow contribution. The judge rejected the Council’s reliance on witness testimony about the parties’ intentions, stressing that the written agreements were unambiguous.

On appeal, the Barbuda Council argued that the trial judge erred by disregarding its evidence and by failing to properly interpret the lease covenants.

However, the Court of Appeal upheld the lower court’s ruling, finding that:
• The MOA explicitly permitted PLH to credit the US$5 million as prepaid rent for both leases.
• There was no ambiguity in the contractual wording that required resort to outside evidence.
• The Council’s witness testimony was unreliable and unsupported by documentation.

The Court of Appeal dismissed the Council’s case and ordered it to pay PLH’s legal costs. The ruling is seen as a decisive win for the developer, which has been spearheading one of Barbuda’s largest private investments.

The decision underscores the judiciary’s strict reliance on the language of commercial contracts and is likely to shape how future land agreements on Barbuda are structured and enforced.

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The Barbuda Council v PLH (Barbuda) Ltd – Judgment_250916_162404