PHILIPSBURG:--- The Court of First Instance of Sint Maarten has delivered a decisive ruling in a summary judgment regarding a property dispute between two Simpson Bay Beach establishments. In a verdict handed down on December 19, 2025, the court ruled in favor of Karakter N.V. ("Karakter"), confirming their exclusive right to use the parking lot situated adjacent to their premises and behind the neighboring establishment, Marcelle and Co B.V., trading as Babacool ("Babacool").
The dispute centered on a plot of land used as a parking facility. Both businesses claimed entitlement to allow their guests to park there, leading to tensions and legal action.
Background of the Case
Karakter, which has operated a bar and restaurant at the location since 2008, initiated the proceedings. Their claim was based on a long-standing lease agreement with White Sands N.V., the entity holding the long lease (erfpacht) for several plots in the area. Karakter argued that this agreement granted them exclusive usage rights to the parking area (cadastral plot SB 095/1981).
Babacool, a newer beach restaurant that opened in August 2025, argued that they were also entitled to use the lot. They relied on their own lease agreement with a different entity, Patula N.V., and contested Karakter's exclusive claim. Tensions escalated when Babacool staff allegedly began directing their guests to use the lot and removing Karakter’s signage.
Karakter sought an immediate ban on Babacool's use of the lot, citing a need for parking for their upcoming reopening following a fire in October 2025.
The Court's Findings
The judge, Mr. L.J. Saarloos, examined the lease agreements and land registry documents presented by both sides. The ruling highlighted several key points that led to the decision in favor of Karakter:
- Valid Lease Agreement: The court confirmed that Karakter holds a valid lease agreement with White Sands N.V. that includes the specific plot used for parking. Although the government ended the long lease with White Sands in March 2025, the court ruled that the Land of Sint Maarten, as the land owner, is legally obligated to honor the existing tenant lease with Karakter.
- Babacool’s Lease Limitation: The court analyzed Babacool’s lease with Patula N.V. and noted that it covered four specific plots adjacent to the parking lot, but not the parking lot itself. While Babacool’s lease mentioned a "designated parking area," the judge determined this could not refer to the disputed plot (SB 095/1981) because Patula N.V. did not own rights to it.
- Exclusive Rights: Consequently, the court found that Karakter is
- Exclusive Rights: Consequently, the court found that Karakter is the sole tenant with usage rights to the specific parking facility in question. Therefore, they have the right to determine who uses it.
The Ruling
The court granted most of Karakter's demands in the convention (main claim) and rejected Babacool's counterclaims (reconvention). The judgment includes the following orders:
- Immediate Prohibition: Babacool is effectively banned from using the parking facility or allowing their guests/staff to use it.
- No Instructions to Third Parties: Babacool is forbidden from giving parking instructions to third parties regarding the lot.
- Removal of Property: Babacool must remove all property from the parking lot.
- Social Media Rectification: Within 48 hours, Babacool is ordered to post a specific statement on all their social media pages. The statement must clarify that the parking facilities fall under the exclusive right of Karakter N.V. and that Babacool guests must park outside the gate. This notice must be repeated weekly on Mondays for two months.
- Penalty Payments: Failure to comply with these orders will result in penalty payments of USD 2,000 per violation, plus USD 1,000 per day the violation continues, up to a maximum of USD 50,000.
Counterclaims Dismissed
Babacool had filed a counterclaim demanding that Karakter withdraw a formal complaint lodged with the Ministry of TEATT regarding the parking dispute. Babacool argued this complaint damaged their reputation. The court dismissed this claim, stating that Babacool failed to prove the complaint was unlawful. The request for Karakter to stop blocking Babacool's access was also denied, based on the court’s finding that Karakter holds the exclusive rights.
Conclusion
The judge declared the verdict immediately enforceable, meaning the orders take effect right away, regardless of any potential appeal. Babacool was also ordered to pay the legal costs for both the main proceedings and the counterclaims.
While the ruling is strict, the judge noted in the closing remarks that the parties remain neighbors. The court suggested that, practically speaking, the parties could still choose to negotiate a temporary usage agreement—possibly involving compensation—especially during periods where one business might be closed, though the legal right to decide rests firmly with Karakter.