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IN THE TERRITORIAL COURT OF THE VIRGIN ISLANDS DIVISION OF ST. CROIX: CHRISTIANSTED MAISON LA CREPE, INC., Ve HILBRESS ASSOCIATES, LTD., Plaintiff, Defendant. fa estliae eesti cattle catiiion callie satin nadie nadine al FRANK FORD, III, ESQ. FORD AND WYNTER No. 1 Strand Street Frederiksted, St. Croix U. S. Virgin Islands 00840 Attorney for Plaintiff WARNER ALEXANDER, ESQ. 1B King Street Christiansted, St. Croix U. S. Virgin Islands 00820 Attorney for Defendant SILVERLIGHT, J. This action Defendant's Motion failure to comply corporation to pay MEMORANDUM OPINION December 14, 1983 INTRODUCTION for damages is before the CIVIL NO. 1032/1982 ACTION FOR DAMAGES Court on to Dismiss the Complaint for Plaintiff's with 13 V.I.C. §553, which requires a its last due annual franchise taxes as a condition precedent to commencing or maintaining actions. Maison La Crepe, Inc. v. Hilbress Associates, Ltd. CIVIL NO. 1032/1982 FACTS AND DISCUSSIONS Plaintiff, a Virgin Islands corporation doing business in St. Croix, secured a lease from defendant for premises located in the Caravelle Arcade in Christiansted. In plaintiff's complaint it is alleged that defendant tortiously interferred with the lease agreement and breached an implied covenant of quiet enjoyment by removing a service bar installed for the benefit of plaintiff. Plaintiff prays for compensatory damages, punative damages, costs and attorney's fees. Defendant filed Motions to Dismiss plaintiff's complaint, to stay the proceedings, or to dismiss the claim for punative damages. No corporation may commence or maintain any action in any Court of the Virgin Islands if it has not paid its annual franchise tax last due. 13 V.I.C. §533{a). However, in almost all actions commenced or maintained by a corporation which has not paid its annual franchise tax last due, the corporation should be allowed a reasonable time within which to become reinstated as a corporation in good standing before dismissal under Section 533(a) will be ordered. Keith Enterprises, Inc. v. The Centurion Corporation, et al, 10 V.I. 206,108-109 (D.C.V.I. 1973). Defendant has acknowledged in his Memorandum of Law attached to the Motion to Dismiss this court's authority to stay the proceedings in order to allow plaintiff to comply with Section 553. Defendant asserts, Maison La Crepe, Inc. v. Hilbress Associates, Ltd. CIVIL NO. 1032/1982 however, that a stay of proceedings would be inappropriate due to plaintiff's long and uninterrupted failure to comply with Virgin Islands corporate law. i/ Though defendant's assertion is not without merit, this Court in the exercise of its discretion will nevertheless allow plaintiff this final opportunity to comply with Section 553 so that this case may proceed on the merits. This Court will also address plaintiff's prayer for punative damages. A suit alleging a breach of lease covenants is in the nature of a suit for breach of contract and damages. Punative damages are not recoverable for a breach of contract unless the conduct constituting the breach is also a tort for which punative damages are recoverable. Restatement (Second) of Contract §355 (1981). Although plaintiff couched the Complaint in language asserting a tortious interference, the pleadings as a whole fall far short of raising issues of tortious conduct on the part of defendant. Accordingly, that part of plaintiff's complaint which prays for punative damages will be dismissed. Mace anne “ ° ° . - ¥ ere F Ce Ne \ IRWIN, J. SILVERLIGHT, Judge \ ‘ \ DATED: December 14, 1983 ) i/ Some five (5) months prior to the drafting of this Opinion, plaintiff's attorney was requested to respond to defendant's Motion to Dismiss.