Customs Ordered to Pay Businessman Over $1M
The High Court has ordered the BVI Customs Department to pay local boat operator Malcolm Maduro more than $1 million in damages plus interest and substantial legal costs after unlawfully holding his commercial vessel for years. The ruling follows a protracted five-year legal battle after the vessel was seized during a 2019 police chase involving charter patrons.
The BVI Customs Department has been ordered to pay local businessman Malcolm Maduro more than $1 million in damages, along with interest and extensive legal costs, following a High Court ruling that found authorities unlawfully seized and retained his primary commercial vessel for years.
Maduro, who operates Sunshine Power Boat Rental out of Village Cay Marina, owns three vessels. His primary boat, the MV New Life, was seized following an incident on October 27, 2019. Maduro had rented the vessel to a customer, but while under charter, the boat became embroiled in a high-speed maritime chase with local police before running aground on Virgin Gorda with its engines still running in the sand.
The occupants aboard the boat were subsequently arrested on drug-related charges, and Customs took custody of the vessel. Court records confirmed that Maduro was never charged with any offence or implicated in the criminal activity. When he enquired about his boat the following day, Customs informed him the vessel was required for the criminal proceedings.
However, authorities failed to properly notify him of its official status or follow statutory procedures required to lawfully seize and hold the vessel indefinitely, despite repeated verbal requests and formal legal letters demanding its release. Represented by attorney Mandy Ha-marinesingh, Maduro filed a lawsuit against the Customs Department in March 2020 after the detention crippled his rental operations.
Acting Commissioner of Customs Greg Romney, represented by attorney Nicosie Dummett, failed to file an acknowledgement of service or a defence, leading Master Sandcroft to enter a default judgment in Maduro's favour in October 2020. Although Customs briefly succeeded in setting aside the judgment, Maduro successfully appealed, restoring the default judgment and sending the matter for a formal assessment of damages.
Following a five-year delay, Master Vernette Richardson delivered the assessment, awarding Maduro $1,031,760 in special damages for lost business income calculated up to December 31, 2022, based on charter rates of $1,200 per day minus operating expenses. That sum carries a 3 percent annual interest rate spanning from October 2020 to June 2026.
The court also awarded $7,500 in aggravated damages, $24,000 in exemplary damages, and ordered Customs to pay 60 percent of Maduro's prescribed legal costs. The court strongly criticized the department, highlighting the complacent and neglectful conduct of Customs officers, their irresponsiveness, and their improper, high-handed actions that inflicted severe financial distress and injustice on Maduro.
The ruling urged the Customs Department to thoroughly evaluate its operating procedures to ensure future actions remain strictly within the bounds of the law.
Primary source: BVI News