In the 2011 seminal case of Banks v. International Rental & Leasing Corp., the Virgin Islands Supreme Court significantly altered the analytical framework that Virgin Islands courts must follow when deciding issues of first impression. Prior to Banks, Virgin Islands courts were statutorily obligated to follow the American Law Institute’s Restatements of the Law when adjudicating novel legal issues. However, Banks implicitly abolished that statutory obligation and replaced it with a three-pronged test, commonly referred to as a Banks analysis. Since Banks was decided, at least 120 cases have referenced the decision when analyzing issues of first impression in the Virgin Islands. This Article examines that body of caselaw and identifies some trends and best practices that have developed after Banks was decided.
The Author begins by examining the continuing influence of the Restatements after Banks and argues that, although Banks has become the controlling doctrinal test, the Restatements still provide influence in the Virgin Islands. However, despite this influence, the Author emphasizes that litigants should not confuse the current persuasive power of the Restatements with the legal force they had prior to Banks. In addition, the Author reasons that courts applying Banks have provided guidance in which litigants should take note. For example, Virgin Islands courts have suggested that litigants are now required to take an active role in matters of first impression by including a Banks analysis in their legal briefs. The Author also provides examples of when a court may refuse to conduct a Banks analysis. Further, the Author evaluates which factor of the Banks analysis, if any, is controlling when a court conducts such an analysis. Ultimately, the Author concludes that Banks has unquestionably improved the jurisprudence of the Virgin Islands. Now that the decision has reached maturity, it should provide even more clarity and consistency to Virgin Islands caselaw for years to come.