S. Ct. Civ. No. 2007/058

The board of directors of Bluebeard's Castle Villas III Condominium Association ("Villas III') sued the condiminium developers, Equivest St. Thomas, Inc. ('Equivest") and other defendants, alleging, inter alia, that the defendants misappropriated condiminium assessments and failed to adequately maintain the condiminium. (Joint Appendix "J.A." at 640-682) The complaint seeks damages for alleged violations of the Virgin Islands Criminally Influences and Corrupt Organizations Act, fraud, conversion, breach of fiduciary duty, breach of contract and the imposition of equitable liens and a constructive trust on insurance proceeds. (J.A. at 655-678.) Two directors on the Villas III board, Mark Farell and John Enrietto, appellants herein, were appointed to serve on the board by the Equivest pursuant to powers of appointment Equivest retained under the condiminium bylaws. (.J.A. at 32.) The remaining directors, Richard Scott and Julius Van De Voorde, apellees herein, moved the trial court to disqualify Farrell and Enrietto from participating in litigation-related decisions by the board because they have conflict of interest in controlling the litigation against Equivest. Apellees argued that, because Equivest appointed Farrell and Enrietto, those two board members essentially served at the pleasure of Equivest and were, therefore, conflicted in making litigation decisions hostile to Equivest. (J.A. at 120-127.) The trial court granted the motion on February 27, 2007. (J.A. at 29) On March 8, 2007, Farrell and Enrietto moved for reconsideration of the court's order. (J.A. at 298-304.) The trial court denied the motion for reconsideration by order entered on April 17, 2007. (J.A. at 36-44) Farrell and Enrietto filed a notice of appeal on April 18, 2007. (J.A. at 1-3)