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Justice Ermin Moise rejects bid to continue blocking bank’s power of sale as original US$11.3 million in loans grew to nearly US$30 million in amounts demanded

THE VALLEY, Anguilla — The High Court of Justice in Anguilla has dismissed an application seeking to continue blocking the National Commercial Bank of Anguilla Limited (NCBA) from exercising its power of sale over several parcels of land connected to the prominent Lake and Kentish families.

Justice Ermin Moise ruled that the applicants had not established sufficient grounds for the court to continue restraining the bank, setting aside a preliminary order that had temporarily stopped NCBA from proceeding with its statutory right of sale.

The case, Conch Bay Development Limited and others v National Commercial Bank of Anguilla Limited, involved Conch Bay Development Limited, George Lake in two representative capacities, Lucinda Lake-Michael and Lorna Rogers.

The lands at the centre of the dispute have reportedly been held by the Lake and Kentish families for more than 130 years.

The court was told that several properties were used as security for loan facilities carrying an aggregate principal of approximately US$11.3 million.

Those facilities originated with the now-defunct National Bank of Anguilla and Caribbean Commercial Bank and were subsequently taken over by NCBA.

According to the judgment, the loans were not repaid in accordance with their terms. Payments on two of the facilities last occurred in October 2012, while the court said no payments were made on three other facilities.

By September 2024, statutory notices issued by NCBA demanded aggregate sums ranging from approximately US$29.9 million to US$30.8 million, including interest, legal, collection and service-related amounts. Approximately US$14.46 million of that figure was attributed to accrued interest.

Airport expansion added another layer

The dispute became more complicated because part of the mortgaged land is connected to the Government of Anguilla’s proposed expansion of the Clayton J. Lloyd International Airport.

The Government had identified part of Parcel 257 for acquisition, eventually moving toward compulsory acquisition of approximately 43.5 acres.

An offer of approximately US$1.52 million had been referenced in negotiations concerning those lands.

The applicants argued, among other things, that the proposed government acquisition could provide an opportunity to address the indebtedness and that NCBA’s sale of the properties could interfere with their right to redeem the land.

Concerns were also raised over the role of NCBA executive Aidan Harrigan on a government acquisition team.

Justice Moise acknowledged that Harrigan’s presence on the committee could create what the court described as a “semblance of a conflict of interest” and said the arrangement perhaps should have been avoided.

However, the judge found that this was not enough, on the material before the court at the interim stage, to justify stopping the bank’s power of sale.

The court also noted that allegations of bilateral discussions between the Government and NCBA to the exclusion of the applicants were disputed and could not be finally resolved during the injunction proceedings.

Court rejects argument over ECCB impaired-loan rules

A major part of the applicants’ case concerned the Eastern Caribbean Central Bank’s Prudential Standard for the Treatment of Impaired Assets.

They argued that because the facilities were seriously delinquent and classified as impaired, NCBA should not have continued accruing interest in the manner reflected in its demands.

But Justice Moise rejected the argument that the ECCB standard erased or suspended the borrowers’ contractual obligation to pay interest.

The court found that placing a non-performing loan into “non-accrual” status is an accounting and risk-management measure for the financial institution. It does not, the judge ruled, automatically extinguish the bank’s contractual right to recover accrued interest.

Justice Moise therefore concluded that this line of argument had no real prospect of succeeding at trial.

And even if interest had been capped at some earlier point, the court said the debt would still be substantial enough that the proposed government acquisition of 43.5 acres was unlikely to provide sufficient funds to redeem the properties.

Court troubled by last-minute applications

The judgment also delivered a wider warning about property owners waiting until the eve of auctions before approaching the courts for injunctions.

NCBA had notified the applicants on January 13, 2026 that the properties were scheduled for public auction on February 27.

The injunction application was served on the bank on February 26 at approximately 2 p.m., according to evidence cited by the court.

Justice Moise noted that concerns surrounding the outstanding debt, interest calculations and government acquisition process had existed long before the scheduled auction.

The judge said delay was a serious factor when courts are asked to exercise their equitable discretion to stop a financial institution from enforcing security over long-defaulted loans.

Family history acknowledged — but court says damages adequate

The applicants stressed that the properties were ancestral family lands carrying significant historical and sentimental value.

The court acknowledged that history.

But Justice Moise said the applicants would have understood the risks when the land was pledged as security for substantial commercial loans.

The judge also pointed to the extended period of default and NCBA’s previous postponements of planned auctions while discussions involving the Government continued.

The court found that another delay was unlikely to produce a realistic alternative capable of satisfying the debt.

Justice Moise further ruled that damages would be an adequate remedy if the applicants ultimately succeeded at trial on issues surrounding the exercise of the power of sale.

The judge said the balance of convenience did not favour continuing the injunction, noting the financial implications of prolonged non-performing loans for banks and the wider financial system.

Injunction dismissed

In his final order, Justice Moise ruled:

“The application for an interim injunction is dismissed and the preliminary order staying the chargee’s right of sale is set aside.”

The applicants were also ordered to pay NCBA’s costs, with the amount to be assessed by the court if the parties cannot reach agreement within 21 days.

The May 29, 2026 ruling does not amount to a final trial determination of every underlying dispute between the parties.

It does, however, remove the temporary court restraint that had prevented NCBA from exercising its statutory power of sale over the charged properties, marking a significant development in one of Anguilla’s largest and longest-running commercial property debt disputes.

TIMES CARIBBEAN