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Moolenaar v. Co-Build Companies

District Court of the Virgin Islands
354 F.Supp. 980 (1973)


Facts

Moolenaar (plaintiff) leased a large tract of land from Aureau Correa (Correa). The initial lease term was five years with an option to renew at a renegotiated rate, which was to be reasonable and based on the fair market value. Moolenaar used the land for goat husbandry, and the initial lease rate was based on this use. During the lease term, Correa sold the property to a predecessor of Co-Build Companies (CDC) (defendant). At the time of the sale, CDC’s predecessor had actual knowledge of the lease and the renewal option. Shortly before the lease was to expire, Moolenaar informed CDC that he would like to exercise the option to renew. CDC agreed, however, the lease rate was significantly increased. The new rate was based on using the land for industrial purposes, as opposed to goat husbandry. Moolenaar brought this declaratory action.

Rule of Law

Issue

Holding and Reasoning (Young, J.)

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