Jolly Harbour freeholders recently received notice of a 2025 maintenance charge increase unilaterally imposed by Caribbean Developments (Antigua) Ltd. (CDAL). Under the explicit language of the land transfer covenants and prior court rulings (including the Coleman claim no. ANUHCV2013/0029 and a 2008 Consent Order in Claim No. ANUHCV2004/0345), CDAL must base any increase or decrease on audited financial statements and ensure that all charges benefit the parcel in question. Below is an overview of why the proposed increase breaches these covenants, followed by a letter template freeholders can send to CDAL.
1. The Land Transfer Covenant Requires Audited Increases
According to the covenant in many Jolly Harbour Instruments of Transfer:
"The Transferee shall pay the monthly maintenance charge … which … may increase or decrease from time to time having regard to the audited common expenses."
This language forces CDAL to justify any fee hike with a proper, completed audit. An increase not preceded by an appropriate audit—and thus disconnected from the actual cost of beneficial services—violates the covenant.
2. Precedent from the Coleman Ruling and the 2008 Court Consent Order
A. Coleman Ruling (Claim No. ANUHCV2013/0029):
- At paragraphs 13–14, the court emphasizes that under Clause 28, community-charge increases must be "on the basis of the budgeted accounts and audited financial statements."
- In Coleman, the judge found that an improperly calculated charge from August 2007 to December 2008 had to be reimbursed.
B. 2008 Consent Order in Claim No. ANUHCV2004/0345:
- CDAL was explicitly ordered to provide an audited report for community-charge calculations by December 31, 2008.
- The order warned that failure to comply could lead to contempt proceedings.
- Critically, it stipulates that if a new calculation is required after the audit, "any new community charge calculation" must be implemented in the immediately following billing period.
Full Text of the 2008 Consent Order:
THE EASTERN CARIBBEAN SUPREME COURT IN THE HIGH COURT OF JUSTICE ANTIGUA AND BARBUDA Claim No. ANUHCV2004/0345 BETWEEN: CHARLES KHOURY MM HOLDINGS LIMITED MOGENS AHRENSBURG RUDOLPH WUTTKE Claimants and CARIBBEAN DEVELOPMENTS (ANTIGUA) LIMITED Defendant DATED AND ENTERED THE 7th day of MARCH 2008 The parties, having agreed the terms in which judgment herein should be given and consenting that judgment be entered in such terms as hereinafter provided. BY CONSENT IT IS THIS DAY ADJUDGED that: 1. The Defendant shall provide an audited report of the calculation of the community charge stipulated in the Agreement contained in the Instruments of Transfer between the Claimants and the Defendant on or before the 31st day of December 2008. 2. If the said audited report so warrants, the Defendant shall arrive at a new community charge calculation, following the provision of the audited report with the Agreement of the Claimants. 3. Any new community charge calculation arrived at by the Defendant is to be implemented and reflected in the bills for the next billing period immediately following the date of its determination. We Henry & Burnette hereby consent to the Judgment in the terms set out. We John E. Fuller & Co hereby consent to the Judgment in the terms set out. NOTICE: If you CARIBBEAN DEVELOPMENTS (ANTIGUA) LIMITED. fail to comply with the terms of this Order, proceedings may be commenced against you for contempt of Court.
Key: This means any unilaterally announced increase for 2025—without a new audited report—breaches both the court order and the covenant's mandatory process.
3. No Charges for New Facilities Until Infrastructure Is Restored
The covenant states charges must be expended "to and for the benefit" of each freeholder's parcel—e.g., on existing sewage, roads, lighting, and other essential items. Under Antiguan and British law (and reaffirmed by local rulings like Coleman), expansions (new pools, new commercial center) or developer add-ons cannot be lumped into the community fee unless the homeowner actually benefits.
Therefore, any expenditure on expansions or brand-new facilities—especially while fundamental infrastructure remains dilapidated—exceeds the scope of "beneficial" services. CDAL must first restore the decaying infrastructure to a maintained state at its own cost, as previously recognized by the court's emphasis on proper audits and covenant compliance.
4. Template Letter to Challenge the 2025 Increase
Below is a template letter you can use to challenge CDAL's 2025 charge increase. Please personalize with your details:
Subject: Request for Compliance with Covenants & Audited Accounts Before 2025 Community Charge Increase
Dear [Name or Title at CDAL],
I write regarding the 2025 maintenance charge recently announced by Caribbean Developments (Antigua) Ltd. (CDAL). Under my land transfer covenant—and consistent with multiple court rulings, including the Coleman decision and the 2008 Consent Order in Claim No. ANUHCV2004/0345—it is clear that:
1. Any Increase Must Be Based on Audited Accounts
• Clause [# of your land transfer] of my Instrument of Transfer states the monthly community charge "may increase or decrease from time to time having regard to the audited common expenses."
• The Coleman ruling further confirmed the necessity of verifying these expenses through proper, finalized audits. The 2008 Consent Order states CDAL "shall provide" audited reports before recalculating charges, ensuring full compliance with the covenant's "benefit of [the] parcel" requirement.
2. No New Facilities Expenses Until Existing Infrastructure Is Maintained
• The covenant's language mandates that I pay only for services "to and for the benefit" of my parcel. If infrastructure critical to Jolly Harbour remains in disrepair (e.g., sewage, roads, lighting), it contradicts both the intent of the covenant and established court rulings to fund expansions or unrelated new facilities from the community charge.
3. Audit & Transparency First
• Before implementing any 2025 rate hike, CDAL must produce the updated audit that justifies the new sum. I formally request a copy of that audit, along with any supporting schedules showing how charges are calculated, ensuring they specifically "benefit" my parcel—not expansions or overhead that do not.
Action Requested:
1. Provide the 2025 Audited Accounts or an immediate plan to finalize and disclose them.
2. Reconfirm that no portion of the 2025 fee has been allocated for new expansions or developer-based projects unrelated to essential Jolly Harbour services.
3. Adjust or suspend the new maintenance charge if no valid, audited basis exists to warrant the increase—consistent with the land transfer covenant and the Coleman/2008 Consent Order precedents.
Failure to comply with these requirements places CDAL in breach of my land transfer covenant, as well as in potential contempt of the 2008 court order. I trust we can resolve this matter promptly and amicably without legal escalation.
Thank you for your prompt attention to this issue. I look forward to receiving confirmation that the proposed increase will be re-evaluated in line with the audited statements, covenant terms, and applicable rulings.
Sincerely,
[Your Name]
[Your Parcel/Villa/Property Reference]
[Contact Information]
Conclusion
A unilateral 2025 charge increase without an updated audit breaches your land transfer covenant—as well as clear Antigua & Barbuda court rulings (particularly Coleman and the 2008 Consent Order). In addition, covenants and local common law strongly indicate that no charges for expansions or new facilities can be levied while existing infrastructure remains neglected. This letter—and the underlying legal authorities—provide freeholders with a firm basis to contest the new fees until CDAL demonstrates genuine compliance with "audited common expenses" and restoration of Jolly Harbour's fundamental infrastructure.