Judge Dismisses Indigenous Group’s Motion in Caneel Bay Resort Case

A federal judge has dismissed a motion by a group asserting indigenous ownership of the former Caneel Bay Resort property, according to recent filings in U.S. District Court. Tushkahumoc Xelup, Director General of the Maipuri Arauan Nation, filed the motion on behalf of a delegation from the National Association for the Advancement of Indigenous Peoples (NAAIP) on Wednesday. The motion aimed to make a "limited special appearance" in a case between EHI Acquisitions LLC and the U.S. government, where EHI is claiming ownership of the 150-acre property through a “quiet title action.” On Friday, Circuit Judge Cheryl Ann Krause denied the motion. “As a non-party to this action, NAAIP is not authorized to seek judicial notice,” Krause stated in her ruling. She further explained that under the rules of evidence, “The assertions made by NAAIP concerning its own interests in this litigation are not, in any event, proper subjects of judicial notice.” Xelup’s seven-page motion argued that Cinnamon Bay Estate, referred to in the EHI claim as Caneel Bay Estate, rightfully belongs to the indigenous people of St. John and not EHI or the U.S. government. The motion cited documents such as survey rules from the Land Act of 1805, a 1916 treaty between Denmark and the U.S. protecting property rights, and the 1917 census listing Indigenous inhabitants as owners of the estate. “The Court can take judicial notice of the record in this matter as evidence that the Plaintiff and Defendant do not have title to Cinnamon Bay Estate, being called, ‘Caneel Bay Estate,’” the motion read. The NAAIP is one of several groups that have raised legal claims to indigenous lands in the U.S. Virgin Islands. The local government has struggled with how to identify and recognize the various tribal nations asserting rights to these lands. In 2020, the Virgin Islands Legislature introduced Bill No. 33-0364 to establish a Virgin Islands Indigenous Tribe Identification Card, but Governor Albert Bryan Jr. vetoed the bill in January 2021. He cited concerns over the bill’s lack of clear criteria for proving indigenous status and limitations on the card’s use. Meanwhile, the ownership dispute over Caneel Bay continues in federal court. The resort, which had been operating under a unique indenture agreement since 1983, was heavily damaged by hurricanes in 2017 and has remained closed since. EHI claims it acquired title to the land through the 1983 agreement, which stipulates that under certain conditions, the property would automatically revert to EHI. However, the U.S. government disputes this claim and has argued that CBI Acquisitions LLC, a related entity, must be included in the case as a necessary party for a final judgment. Judge Krause has yet to rule on the government’s motion to dismiss EHI’s claim.