The High Court has refused an application by businessman John B. Turbidy to delay a trial linked to the Barbuda Ocean Club development, while using the case to provide guidance on the growing role of artificial intelligence in reviewing large volumes of digital evidence.

High Court Judge Justice Tana’ania Small, KC, ruled that Turbidy had not shown that he was denied a fair opportunity to prepare his case, despite concerns raised about the format and condition of thousands of electronic documents disclosed ahead of trial.

The court maintained the trial dates of July 20 to July 31, 2026.

The application arose from a dispute over the handling of electronic documents in a breach-of-contract case involving billionaire business associates John Paul DeJoria and Turbidy, who are now on opposing sides of litigation connected to the Peace, Love and Happiness (PLH) project, the developers of the Barbuda Ocean Club luxury resort.

Turbidy had argued that he required additional time to prepare his defence because approximately 3,500 documents were provided as image-based PDF files, which he said restricted his ability to use artificial intelligence-assisted review tools.

He claimed that some electronic documents had been degraded during conversion, with files being converted into one-bit black-and-white PDF images containing unreliable optical character recognition (OCR) text layers. He also said some documents were provided as text files, around half contained garbled text, and original metadata had been removed, contrary to what had been proposed during the disclosure process.

The claimants, DeJoria and JPD Barbuda, LLC, disputed those claims, maintaining that the documents provided were searchable and readable.

In dismissing the application, Justice Small said the central issue was whether Turbidy had a fair opportunity to prepare for trial, rather than whether he was able to use his preferred technology.

She said the absence of native-format documents alone was not sufficient grounds to postpone proceedings.

“The lesson of this application is that parties who wish to rely on particular technical formats should agree a disclosure protocol early and, if agreement is not possible, seek directions promptly,” Justice Small said, noting gaps in existing rules relating to electronic disclosure and inspection.

The judge also addressed the use of artificial intelligence in litigation, saying AI-assisted document review is an acceptable tool and that parties should not be criticised for seeking to use technology when dealing with large volumes of material.

However, she said the desire to use AI does not automatically create a right to demand native-format files.

On Turbidy’s concerns that some documents contained garbled text, the court found that the defendant could still examine the documents through more traditional methods, including human review.

Justice Small also suggested that the difficulty may have arisen on the defendant’s side, noting that the claimants had produced versions of the documents that were readable.

The judge’s comments highlight the increasing need for courts and litigants to establish clear approaches for managing electronic evidence as complex cases generate thousands of digital records.

The underlying dispute over the Barbuda Ocean Club development remains before the court. The case has been ongoing since 2023.

The case: John Turbidy vs John Paul Dejoria

Billionaire investors John Turbidy and John Paul DeJoria are locked in a legal dispute over the future of the Barbuda Ocean Club (BOC) luxury resort project. There is a breakdown in the business partnership over control, financing, delays and alleged breaches of agreements. Turbidy has taken DeJoria to court, alleging that DeJoria breached agreements governing their partnership.

Barbuda Ocean Club is a luxury resort and golf development located on approximately 1,200 acres of leased land at Palmetto Point, Barbuda

  • The project involves:
    • Luxury residential lots
    • A golf course
    • Resort facilities
    • Airport and infrastructure development

Key Players

  1. John Turbidy – Conceived the Barbuda Ocean Club project and brought in investors
  2. John Paul DeJoria – Billionaire investor and co-owner of PLH Barbuda Ltd
  3. Michael Meldman – Founder of Discovery Land Company (DLC)
  4. Discovery Barbuda Management (DBM) – DLC affiliate hired to develop, market and manage BOC
  5. PLH Barbuda Ltd – Company behind the Barbuda Ocean Club project

Allegations made by Turbidy in a Colorado Court

A major issue is a clause in the Development, Marketing and Sales Agreement (DMSA).

According to Turbidy, Discovery agreed not to work on competing luxury developments within 500 miles of Barbuda Ocean Club until half of BOC’s lots had been sold. Turbidy insisted on this clause because he feared Discovery would divert wealthy buyers to another resort.

The lawsuit claims Discovery later violated this agreement by becoming involved in resort developments in Puerto Rico.

Turbidy says that after Barbuda Ocean Club began, DeJoria became an investor in several Discovery projects worldwide.

He argues this created conflicts because:

  • Discovery and DeJoria allegedly began acting in each other’s interests rather than PLH’s.
  • Decisions were allegedly made that benefited Discovery and DeJoria instead of Barbuda Ocean Club.

Allegations against Discovery 

Turbidy claims Discovery originally estimated the project would require about US$22 million, but more than US$90 million had already been invested and another US$90 million was being requested.

The filing blames Discovery for many delays, including:

  • the golf course being more than two years behind schedule;
  • delays completing the airport;
  • poor marketing of lots;
  • selling condominium units before legal requirements were in place;
  • failing to obtain necessary approvals;
  • failing to pursue establishment of the land registry;
  • ignoring advice from Turbidy.

Allegations against Discovery 

Turbidy claims Discovery originally estimated the project would require about US$22 million, but more than US$90 million had already been invested and another US$90 million was being requested.

The filing blames Discovery for many delays, including:

  • the golf course being more than two years behind schedule;
  • delays completing the airport;
  • poor marketing of lots;
  • selling condominium units before legal requirements were in place;
  • failing to obtain necessary approvals;
  • failing to pursue establishment of the land registry;
  • ignoring advice from Turbidy.

Funding Dispute

By mid-2023, the project allegedly needed another US$90 million.

Turbidy argues:

  • this need resulted from Discovery’s mismanagement;
  • DeJoria wanted to provide the money as another high-interest loan;
  • the proposed loan would also give DeJoria effective control of PLH.

He says the proposal would have:

  • added a DeJoria affiliate to the board;
  • given DeJoria foreclosure rights;
  • failed to hold Discovery accountable.

Mediation

The parties attempted mediation twice.

First mediation (2021)

They signed a confidential Term Sheet providing that:

  • Turbidy and DeJoria would each own 50% of PLH;
  • both would serve as directors.

Second mediation (2023)

The parties attempted to resolve:

  • Discovery’s alleged breach of the non-compete agreement;
  • the project’s financing needs.

According to Turbidy, negotiations continued after mediation, but instead of returning to the mediator, DeJoria sued in Antigua.

The Antigua Lawsuit

One of  Turbidy’s biggest complaints is where DeJoria filed suit.

He says:

  • everyone had already agreed disputes would be governed by Colorado law;
  • DeJoria nevertheless filed proceedings in Antigua and Barbuda;
  • the Antigua lawsuit sought many of the same remedies already before the Colorado court.

The Antigua case asked the court to:

  • force Turbidy to approve the proposed loan;
  • appoint a receiver-manager;
  • appoint a third director.

Turbidy said an expedited hearing was scheduled before he had been formally served with the Antigua lawsuit. He travelled to Antigua to challenge the court’s jurisdiction. Despite his challenge, the High Court appointed a receiver-manager. Turbidy later withdrew his jurisdiction challenge after receiving legal advice, while reserving his right to raise the issue again.