The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

A Freeport-based tour operator yesterday told Tribune Business he was being ‘haunted’ by a ghost from his business past, who has successfully persuaded a Florida court to “arrest” his 75-foot catamaran.

Dwight Palacious, owner of Executive Tours and Superior Watersports Company, disclosed that a business partner he last spoke to 18 years ago was suddenly claiming ownership of a vessel that his company owns

And he accused Peter Savill, and his Cayman-based Sound Financial Management company, of running to the south Florida district court after losing a similar action in the Bahamian Supreme Court more than a decade ago.

Explaining the circumstances that led to last week’s Florida court action, Mr Palacious explained that he had placed the Bahama Mama, a Corinthian offshore yacht, within the US court’s jurisdiction by taking it to Fort Lauderdale.

This gave Mr Savill, and Sound Financial Management, the opportunity to successfully persuade the Florida court that the vessel should be seized on the grounds that Superior Watersports had defaulted on the lease payments to him as owner.

Mr Palacious said he now has a US attorney working to have the seizure and restraining Order lifted, as Mr Savill and Sound Financial Management allege that he is seeking to sell their boat without authorisation.

“Plaintiff has leased the vessel to defendant Superior,” Sound Financial Management alleged in a November 6 court filing. “Superior is in default under the agreement, having failed to make the required payments when due.

“Upon information and belief, Superior and Palacious are working in concert to sell the vessel to a third party improperly and without authorisation.

“To facilitate that sale, Superior has transported the vessel to Fort Lauderdale, from where it is to be transported to the purported purchaser,” it added. “The vessel is scheduled to be transported to St Thomas, and then outside the jurisdiction of the United States.

“Unless the vessel is immediately arrested, and any transport company is enjoined from removing the vessel from Broward County, plaintiff will suffer irreparable injury.”

Mr Palacious confirmed that he had been trying to sell the Bahama Mama due to the downturn in Freeport’s economy and tourism industry, but asserted that he and Superior Watersports - not Mr Savill and Sound Financial Management - owned the boat.

“The boat has been out of their hands for 11 years,” Mr Palacious told Tribune Business. “It’s been registered in the Bahamas for the last 11 years, Superior Watersports being the registered owner of the boat.”

And he read to this newspaper, over the phone, a February 3, 2004, Bill of Sale and its terms that seemingly confirm that ownership of the Bahama Mama was transferred from Sound Financial Management to Superior Watersports.

“The boat was paid off seven years earlier,” Mr Palacious added. “The lease payments were already paid. How many lease payments do you want.”

He told Tribune Business that the roots of today’s dispute go back to 1997, a time when Mr Savill and his companies had a 40 per cent equity stake in Superior Watersports - an interest that still exists today.

Despite paying what was due, Mr Palacious said Mr Savill insisted that the Bahama Mama’s ownership remain with one of the Cayman-domiciled companies.

This resulted in the Supreme Court battle that Mr Palacious and Superior Watersports ultimately prevailed in during 2002.

Mr Palacious said he “didn’t speak to or hear from” Mr Savill between 1997 and 2003. The latter then introduced his representative, Rob Spellar, to the business, and ultimately suggested that he buy his 40 per cent stake.

This deal failed because the Investments Board refused to give the necessary approvals for the new foreign ownership, leaving Mr Savill as shareholder and business partner with Mr Palacious.

Mr Palacious yesterday said Mr Savill was relying on documents from 2004 to prove his ownership of the Bahama Mama, but he argued that these were invalid because the involved the sale to Mr Spellar, which was never completed.

And he told Tribune Business that he had never received any communications or contacts from Mr Savill after that deal fell apart, making it impossible to get his approval to sell the boat.

Mr Palacious described Freeport’s economy as “dead” after the n2004 hurricanes. The damage inflicted on the Bahama Mama, which was used to take tourists and locals for water cruises and excursions, forced him to mortgage his home to finance necessary repairs.

“No one knows how to reach Peter Savill,” Mr Palacious told Tribune Business. “Peter never called Dwight to find out how the business was going. Can you imagine being in business with someone and not speaking to them for 18 years?

“You speak to your business partner to find out if there’s anything you can assist with. He didn’t do any of the hurricane repairs.To be honest with you, he couldn’t make it in the Bahamas, and in the courts here, so he went to court in the US.

“I don’t know how to reach him. He vanished into thin air for years and years. I guess he thought the boat would sink here, and Dwight would go down with the boat. Now he’s back.”

Mr Palacious said that with business “not doing good” due to the Freeport economy, and after re-mortgaging his home to finance repairs, he decided to accept an offer to sell the Bahama Mama.

“We haven’t been doing well with the boat period,” he told Tribune Business. “There’s so much foolishness happening in Grand Bahama with the Mexicans. If we do two trips a week we’re doing well. The sad part about it is: It’s the largest boat in Freeport.”

Mr Palacious said he and four others sailed the Bahama Mama to Florida, only for him to receive a call on Monday that US marshals had seized it after Mr Savill went to court.

“Why would I sell the boat and owe someone else on it? That’s just crazy,” Mr Palacious told Tribune Business.