Utility must begin corrective work within four weeks or face US$1,000 daily penalties; property holder must allow access to longstanding transformer station.
PHILIPSBURG:--- The Court of First Instance has ordered GEBE to begin correcting a dangerous exposed-cable situation at a Simpson Bay property, while separately questioning why the utility disconnected the property’s electricity despite an undisputed credit balance.
In a September 29, 2026, judgment, published on October 5, Judge L.J. Saarloos rejected a demand to remove GEBE’s transformer station and associated installations. However, the court also rejected GEBE’s position that the property holder should resolve the exposed cables on its own.
GEBE must begin adjusting the cable route within four weeks of the judgment, carrying out the work responsibly and in accordance with applicable standards. Failure to comply carries a penalty of US$1,000 for each day or part of a day.
The deadline concerns the start of corrective work, rather than completion of the entire project.
Judge finds dangerous conditions during site visit
The dispute involves DBMP LLC, a Marshall Islands company holding long-lease rights to the property, and Electrum Group LLC, a Nevis company acting as its manager.
During an inspection on April 23, 2026, the court encountered conditions it described as plainly dangerous. The judgment noted that little appeared to have changed between that inspection and the ruling.
DBMP wanted GEBE to remove the exposed cables. GEBE refused, arguing that DBMP had moved them and should therefore restore the situation itself.
The court found that the evidence did not establish that DBMP had relocated the cables in connection with the installation of septic tanks. It also rejected GEBE’s account of their previous position.
DBMP alleged that an exposed cable carried high voltage. The judge did not need to resolve that specific assertion to conclude that the existing situation required a prompt solution.
GEBE Must Correct Cable Route
The court ordered a less extensive remedy than the complete removal DBMP sought.
GEBE may carry out the necessary adjustments within the property’s existing cable route, which DBMP must permit. Alternatively, the utility could reroute the cables eastward from the transformer station and then toward Welfare Road, subject to the government’s approval for use of the relevant land.
The judgment suggested that discussions involving GEBE, DBMP and Country Sint Maarten could help resolve the matter. DBMP had also asked to purchase the adjoining government land.
The judge hoped the orders and penalties would prompt both sides to meet quickly and agree on how to carry out their obligations.
Court Questions Electricity Disconnection
In a separate observation, the court addressed DBMP’s complaint that GEBE had disconnected its electricity.
GEBE acknowledged the disconnection. DBMP demonstrated that its account had a positive balance, which GEBE did not dispute. The court therefore noted that the disconnection could not be explained by payment arrears.
The judge observed that the reason appeared to be DBMP’s filing of the lawsuit, but expressly acknowledged that the proceedings had not fully debated this issue.
That observation was not a final finding that GEBE disconnected the customer in retaliation.
Because DBMP had not requested a reconnection order in this case, the court could not issue one. Nevertheless, it expressly suggested that GEBE restore the connection at least provisionally, to avoid further escalation and a possible separate urgent court proceeding.
Transformer Station Has Lawful Basis
Although DBMP secured an order requiring corrective cable work, it failed to have the transformer station and associated installations removed.
The court accepted evidence that the original long-lease holder authorized construction of the transformer station on December 31, 1991.
Initially located near Welfare Road, the station was moved behind the building in 2006, in consultation with the then long-lease holder.
The National Bank of Anguilla acquired the long-lease rights at a public auction in April 2012 and subsequently transferred them to DBMP. DBMP purchased the rights for US$1.1 million, receiving them through a notarial deed dated May 4, 2017, following government approval.
The court found that DBMP acquired the property subject to GEBE’s existing authorized use. The same applied to the utility’s installations and cables already present when DBMP purchased the rights.
Long-Lease Obligations Require Utility Access
The judgment relied on Article 12 of Sint Maarten’s ordinance governing the granting of long-lease rights over government land.
The court explained that the applicable conditions require the long-lease holder to accommodate utility infrastructure and access for its installation and maintenance.
It also emphasized that GEBE, although a private legal entity, performs a public function by supplying electricity and water to residents and businesses.
The court declared that GEBE has lawful use, access and management rights relating to the transformer station and connected utility installations dating back to 1991.
However, those rights must be exercised with respect for DBMP’s property interests. Access for maintenance, inspection or repair must follow advance notification with reasonable notice.
DBMP and Electrum were ordered to provide that access. Failure to comply also carries a penalty of US$1,000 for each day or part of a day.
Neither Side Receives Damages Award
DBMP had sought removal of the installations within two weeks, backed by a proposed Cg. 10,000 daily penalty, along with compensation for alleged damage and unjust enrichment.
GEBE filed counterclaims seeking recognition of its rights, access orders, penalties and compensation for alleged damage involving its cables.
The court rejected both sides’ requests to proceed to separate damages assessments because it was not sufficiently clear that either had suffered damage recoverable from the other.
The court declared Electrum’s claims inadmissible because it had not established a legal basis to assert rights reserved to DBMP as the property rights holder. Electrum nevertheless remains subject to the court’s access order.
Each side must bear its own legal costs. The corrective-work and access orders are immediately enforceable, even if an appeal is filed.
Source: Court of First Instance of Sint Maarten, ECLI:NL:OGEAM:2026:134.
