Mobile Menu
Offshore Cases

Ocean Conversion (BVI) Limited v Attorney General, Attorney General -v- Ocean Conversion (BVI) Limited HCVAP 2009/19 and 2009/20

July 2012 Contracts

BRITISH VIRGIN ISLANDS

COURT OF APPEAL

CONTRACT - BVI APPEALS - CONSTRUCTION OF CONTRACTS - ESTOPPEL - UNJUST ENRICHMENT - TRIAL JUDGE’S PRIMARY FINDINGS OF FACT - FUNCTION OF APPELLATE COURT

The case concerned an agreement between the BVI Government and Ocean Conversion (BVI) Limited (“Ocean”) for Ocean to produce potable water up to a maximum quantity for public consumption.

The Government had an option to purchase the plant for an agreed sum at the end of the first seven-year term. If the agreement was renewed for another seven years, at the end of that period the plant would belong to the Government without further payment. At the end of the first seven year term, the Government purported to exercise the option to purchase the plant. Events transpired that led Ocean to believe that the contract had been renewed for a further seven years. Over the course of the first and second seven-year terms and at the request of the Government, Ocean spent an additional US$4.765 million expanding the plant in order to increase Ocean’s capacity to provide more potable water for public consumption. The plant that was eventually turned over to Government, more than seven years after the exercise of the option, was not the original plant subject to the agreement. The old plant for which Government had agreed to pay the sum of US$1.42 million was entirely replaced. The Government refused to pay the additional sum and claimed it was entitled to possession of the plant without compensation to Ocean. Ocean claimed to be entitled to the additional sum of US$4.765 million.

 

To continue reading full articles in PDF format:
Ocean Conversion (BVI) Limited v Attorney General, Attorney General -v- Ocean Conversion (BVI) Limited HCVAP 2009/19 and 2009/20

 

Accolades
_

"Few firms can come close to Conyers on one critical metric, and this is the breadth of the client base."
- IFLR1000

EDITOR & HEAD OF LITIGATION BERMUDA

Christian R. Luthi
Tel: +1 441 298 7814
Email: christian.luthi@conyersdill.com


Head of Litigation British virgin islands

Mark J. Forte
Tel: +1 284 852 1113
Email: mark.forte@conyersdill.com


Head of Litigation Cayman Islands

Paul Smith
Tel: +1 345 814 7777
Email: paul.smith@conyersdill.com


HEAD OF THE ASIA DISPUTES & RESTRUCTURING GROUP

Nigel K. Meeson, QC
Tel: +852 2842 9553
Email: nigel.meeson@conyersdill.com

Offshore Cases

Ocean Conversion (BVI) Limited v Attorney General, Attorney General -v- Ocean Conversion (BVI) Limited HCVAP 2009/19 and 2009/20

01 July 2012

BRITISH VIRGIN ISLANDS

COURT OF APPEAL

CONTRACT - BVI APPEALS - CONSTRUCTION OF CONTRACTS - ESTOPPEL - UNJUST ENRICHMENT - TRIAL JUDGE’S PRIMARY FINDINGS OF FACT - FUNCTION OF APPELLATE COURT

The case concerned an agreement between the BVI Government and Ocean Conversion (BVI) Limited (“Ocean”) for Ocean to produce potable water up to a maximum quantity for public consumption.

The Government had an option to purchase the plant for an agreed sum at the end of the first seven-year term. If the agreement was renewed for another seven years, at the end of that period the plant would belong to the Government without further payment. At the end of the first seven year term, the Government purported to exercise the option to purchase the plant. Events transpired that led Ocean to believe that the contract had been renewed for a further seven years. Over the course of the first and second seven-year terms and at the request of the Government, Ocean spent an additional US$4.765 million expanding the plant in order to increase Ocean’s capacity to provide more potable water for public consumption. The plant that was eventually turned over to Government, more than seven years after the exercise of the option, was not the original plant subject to the agreement. The old plant for which Government had agreed to pay the sum of US$1.42 million was entirely replaced. The Government refused to pay the additional sum and claimed it was entitled to possession of the plant without compensation to Ocean. Ocean claimed to be entitled to the additional sum of US$4.765 million.

 

To continue reading full articles in PDF format:
Ocean Conversion (BVI) Limited v Attorney General, Attorney General -v- Ocean Conversion (BVI) Limited HCVAP 2009/19 and 2009/20

 

 

EDITOR & HEAD OF LITIGATION BERMUDA

Christian R. Luthi
Tel.: +1 441 298 7814
Email.: christian.luthi@conyersdill.com


Head of Litigation British virgin islands

Mark J. Forte
Tel.: +1 284 852 1113
Email.: mark.forte@conyersdill.com


Head of Litigation Cayman Islands

Paul Smith
Tel.: +1 345 814 7777
Email.: paul.smith@conyersdill.com


HEAD OF THE ASIA DISPUTES & RESTRUCTURING GROUP

Nigel K. Meeson, Q.C.
Tel.: +852 2842 9553
Email.: nigel.meeson@conyersdill.com