The Eastern Caribbean Court of Appeal has dismissed an appeal by the Barbuda Council against PLH (Barbuda) Ltd, confirming that the developer is not liable for millions in alleged unpaid rent under long-term land leases.

The dispute centred on whether a US$5 million contribution made by PLH toward Barbuda’s new airport in 2017 should be treated as prepaid rent. The Council argued the funds applied only to a 174-acre lease at Low Bay, but PLH successfully maintained the payment also covered rents under a second lease for 425 acres at Pink Sands.

The Government of Antigua and Barbuda, with the Council’s consent, signed the two 99-year leases in 2017 as part of PLH’s luxury tourism project. Alongside the leases, the parties executed a Memorandum of Agreement and an Airport Escrow Agreement, requiring PLH to deposit US$5 million to support airport construction.

In 2023, the Council claimed PLH owed US$900,000 in rent under the Pink Sands lease. But the High Court ruled in 2024 that the documents clearly allowed the developer to set off rent against its escrow contribution. The judge rejected the Council’s reliance on oral evidence, finding the written agreements unambiguous.

On appeal, the Council contended that the trial judge misinterpreted the covenants and dismissed its evidence too readily. However, the Court of Appeal upheld the ruling, stressing that the contractual language was explicit and that the Council’s testimony lacked supporting documentation.

The Court dismissed the Council’s case and ordered it to pay PLH’s legal costs. The decision is seen as a significant victory for PLH, which is spearheading one of Barbuda’s largest private investments.

Legal analysts say the judgment underscores the courts’ strict reliance on written contractual terms in commercial disputes, a precedent likely to influence future land agreements on the island.