The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

Baha Mar is demanding that the Supreme Court order SuperClubs Breezes to pay it more than $337,000 in alleged past-due rent and wastewater treatment expenses, plus compensate it for expenses associated with environmental clean-up.

The $2.6 billion Cable Beach developer, in a counterclaim filed with the Supreme Court over the rival hotels’ land swap legal battle, alleged that Breezes should be held liable financially for the clean-up of its former wastewater treatment plant.

Baha Mar, which constructed a new wastewater treatment plant for Breezes as part of the two sides’ September 2011 land swap agreement, is arguing that the latter had a duty to prevent the initial plant from becoming an environmental hazard and “public nuisance”.

Alleging that Breezes knew of the sewerage and wastewater contamination at the existing plant prior to the land swap agreement signing, Baha Mar claimed that by failing to act it was guilty of “egregious conduct, and as such constitutes willful default and/or gross negligence in breach of duty of care” to it.

“In consequence of Breezes’ willful default and gross negligence, Baha Mar has suffered loss, damage and/or expense in the removal and disposal of the contaminants and the consequential and/or related demolition of the existing wastewater treatment plant to abate a private nuisance,” Baha Mar alleged.

Its counterclaim, filed with the Supreme Court on December 20, 2013, alleged that Breezes’ new wastewater treatment plant - constructed by Baha Mar - had left the latter carrying $257,285 in operating expenses since April 23, 2013.

“Baha Mar has paid the new wastewater treatment plant operating expenses to date, and is entitled to be reimbursed - and claims reimbursement - from Breezes in respect of the same,” the developer alleged.

“Further or alternatively, Breezes has been unjustly enriched by the use and benefit of the new wastewater treatment plant without payment of expenses accrued for the operation thereof, and Baha Mar is entitled to restitution from Breezes respecting the new wastewater treatment plant operating expenses.”

And, in the third and final strand of its counterclaim, Baha Mar is alleging that Breezes owes it at least $80,000 in rent after it took over ownership of a three-plus acre parcel from the Hotel Corporation of the Bahamas.

That land was already leased by Breezes, and is supposed to be “reconfigured” under the terms of the two resorts’ 2011 agreement to facilitate Baha Mar’s $2.6 billion project.

“Breezes as lessee is obligated to pay BMP Golf as lessor (having acquired the title of the Hotel Corporation) rent annually in the amount of $10,000,” Baha Mar alleged.

“Breezes has defaulted in the payments of rent due relative to the existing leased parcel for the past eight years (2006 to 2013 inclusive) and, wrongfully in breach of the said lease, is in arrears of rents aggregating $80,000 (and $90,000 as of December 30, 2013) by reason of which BMP Golf has suffered loss and damage.”