Betteto Frett loses multi-million dollar suit vs FirstBank
The High Court has ruled against local businessman and hotelier, Betteto Frett, in a suit he brought against FirstBank in relation to several unpaid loans.
According to the court document seen by BVI News, Frett borrowed some $6.7 million from FirstBank in March 2012 under three loan agreements — all of which were repayable by April 2019. All of the loans were reportedly charged on land he held in Road Town and West End.
But following hurricane Irma in 2017, the properties sustained damage and Frett ceased to make loan payments. While the bank received insurance monies, only some of this was advanced to Frett, while a portion was held back.
The court heard that Frett wished to redevelop the Road Town property into a hotel and he claimed that while FirstBank was initially willing to advance a loan for this purpose, the bank later refused, thereby causing him damage. Frett also alleged that FirstBank underinsured the two properties.
Frett filed a claim against the bank for damages and to prevent the institution from selling the properties under the terms of its charge.
The bank in turn counterclaimed for monies due under the loans and for consequential relief under the bank’s power of sale of the properties.
Insurance and underinsurance
It was noted that FirstBank took out insurance with Nagico which Frett used, and while Frett asserted that he kept up the insurance throughout up until June 2014, it was found that there were periods where he had not paid the premiums on time and the insurance had lapsed temporarily.
This fact, coupled with an uninsured loss by fire on an adjacent building, caused FirstBank to take over the payment of the insurance. The court revealed that Frett was aware of this and pointed out that the bank granted Frett a $72,000 loan in August 2016 to regularise the bank’s payment of the insurance which was due in 2016–2017.
After Irma, both the government and a jewellery store — tenants which previously occupied his Road Town property — vacated the premises and Frett ceased to service the loans from FirstBank. No payments were recorded since September 2017 while insurance payments totalling some $2,398,067 were made to the bank by Nagico between January and April 2018.
The court found that, although Frett complained that the bank had underinsured the buildings, no valuation of the reinstatement cost of the buildings was presented in evidence, although the reinstatement value serves as a critical parameter for assessing whether a building is adequately insured.
Hotel trouble
Frett then decided to convert the Road Town property into a 3-star hotel which would have a reception and 20 bedrooms on the first floor, while the second and third floors would each have 17 bedrooms. At one point, consideration was even given to having a bar on the roof and a swimming pool, but these were later abandoned.
It was related that at no point did Frett draw up specification works, nor was any attempt ever made to find a prime contractor on the project. Instead, Frett intended for himself to be the prime contractor, and also took on what would normally be the role of the contract administrator.
The only form of documentation the businessman prepared was four floor plans – everything else was effectively in his head, the court said.
The court said it found this surprising and unprofessional for what it noted was intended to be a turn-key hotel project. Frett reportedly told the court that he intended to purchase goods such as lavatories from China for the installation in the proposed hotel, but no bills of lading or other evidence of the purchase was put into evidence. The goods never reached Tortola and it is unclear whether a definite order for the goods had ever been made at all.
Frett wasn’t deliberately lying
The court heard from several expert and lay witnesses for both parties during the trial — one of whom noticed after visiting the property that wiring was exposed and hanging from steel beams. During the inspection, employees of Frett were allegedly found to be housed at the location and living with exposed wiring. It was further related that there were only temporary doors installed in each of the living quarters.
Justice Adrian Jack noted in his ruling that, among other things, he did not find Frett to be a ‘satisfactory witness’ when he gave evidence.
“I do not think he was deliberately lying, but as a businessman, he took such a rose-tinted view of the prospects of success of his hotel project that he failed to take an objective view of the contemporaneous facts. On some matters, I had no hesitation in preferring FirstBank’s evidence.”
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This is what you call”Hut Head.”
So will the shanti in the middle of Town be up for sale soon?
He should have lost. It was his responsibility to make sure that the insurance was satisfactory. He could have purchased a different insurance where there is no under=insurance clause. Why would you buy from china when you can buy from Home Depot the same bath items. Why would you have the design of a building in your head. Sounds like he was trying to find someone to blame.
He geh wha deh duck geh
KARMA IS A B***H WHAT GOES AROUND COMES AROUND NO MATTER HOW LONG IT TAKES. LET HOM TEK THAT!
From my reading this (i) I am responsible for making timely insurance payments, failure of which = to lapsed insurance cover. (ii) I am also responsible for securing valuations on the reinstatement costs of my property.
What is new with this lad? Definitely not his first go around.
The bank will want to clear his outstanding debts, the gov will want the 20 years of unpaid rent on the land, the workers will all have liens because of being unpaid.
So, the amount owing will dictate the minimum purchase price and it will undoubtedly be more than the value of the derelict building.
I am amazed any bank would lend this incompetent person that sort of money. No way they getting paid just look the shambles this mans business plan is in.
You are correct which is why Mr. Frett doesn’t give a s**t. He knows that either way it’s in the best interest of the bank and other parties to deal with him and try the best way forward as opposed to putting it on the market. Nobody is going to deal with all that stress and pay premium for the dump he has developed out there.
Here comes the original owners now to tale back what was once. Lol woi bidding time comming
From time met boot up on that jamican ting it was bad real bad luck.
Beep beep…I finally caught yo lil behind
I BET Bettito loose.
karma catching up with Betteto who has been playing this game for far too long..
Karma is a B***h
Justice goes to each person you r**bed.
The longest rope has an end…with God all things are possible! Now Mr. Frett where is your brain now??
Man’s hands are full of bribery but not God!!!
At some point lies, dishonesty and trick will be exposed… This Bank was very careless from the start but came to their senses just in time…
imagine that, a whole 6.7 million total he got. and the simple man who been faithful banking there come and ask for a 5k to 20k loan they get a no.
i guess these bankers never seen YES MAN. ?????
Karma is indeed A bit**!! God never sleeps and I know of quite a few people who loan this man funds trusted him and all he did was made promises!! Finally people are realizing what Tola is and who is behind dirty work! It’s Us the hard and honest workers who gets minimum wage suffer and these crooks walks like they are GODS!! HE IS OLD I PERSONALLY WANT NOTHING BAD TO HAPPEN TO THIS MAN BUT HE/BANKS NEEDS TO PAY PEOPLE WHO LEND HIM FUNDS!!
They never see us dude always the crooks !
They never see us dude always the crooks !
Did your brain really allow your fingers to type this….Why would you buy from China when you can buy from Home Depot???? Contact your local fisherman immediately. Your brain activity depends on it. Why do people leave Tortola to go shop St.Thomas,Puerto Rico,US, St. Maarten and utilize Amazon along with other shopping websites etc.
Did your brain really allow your fingers to type this….Why would you buy from China when you can buy from Home Depot???? Contact your local fisherman immediately. Your brain activity depends on it. Why do people leave Tortola to go shop St.Thomas,Puerto Rico,US, St. Maarten and utilize Amazon along with other shopping websites etc.
My heart bleeds for this nice man.
why is this news. ayo leave the man business alone. Get your own.
for hurricane Irma in Sept. 2017. At least the claimant recovered $2.4 million from the Nagico insured property damage claims of the $6.7 million loan in 2012. So defendant still owing around $4.3 million to claimant. Doubt if the 3 properties will ever fetch near that amount at auction. Perhaps the claimant bank should pursue enforcement, auction all his assets in the BVI and committal for the defendant if the outstanding debt is still not satisfied.