Following the death of its founder, the leadership of Sandals Resorts International (SRI), one of the Caribbean’s most successful tourism chains, was thrust into a significant legal showdown.
The dispute centered around three key individuals:
• Gordon ‘Butch’ Stewart: The Founding Chairman of SRI, whose death in January 2021 set the stage for the conflict.
• Adam Stewart: The current Executive Chairman of SRI and son of the founder.
• Cheryl Hammersmith-Stewart: The third wife of Gordon ‘Butch’ Stewart, who initiated the legal challenge.
This family disagreement evolved into a formal legal challenge aimed at fundamentally reshaping the corporate governance of the company.
The core objective of Cheryl Hammersmith-Stewart’s legal action was to reduce the influence of Adam Stewart within the company’s corporate structure.
To achieve this, she petitioned the Bahamas High Court to appoint a local bank, the Private Trust Corporation (PTC), as an “independent judicial co-trustee.” This new appointee would share oversight of the Coral Ridge Trust (CRT), the primary entity that oversees SRI — the chain’s parent company.
The case revolved around a clear set of allegations and the court’s subsequent findings, which can be summarized as follows:
| Plaintiff’s Allegations | The Court’s Findings |
|---|---|
| 1. The existing sole trustee, Cromwell Trust Company (CTC), could be “unduly influenced” by Executive Chairman Adam Stewart. | 1. The court determined that the directors of CTC are not “incapable of exercising proper fiduciary oversight” of the trust’s assets. |
| 2. A hired certified fraud examiner claimed there was a risk that SRI’s assets could be “stolen” or “misused”. | 2. The court found “no material risk” of asset misuse and ruled the fraud examiner’s claims were both “baseless” and “insufficient”. |
The court, having weighed these starkly opposing claims, delivered a verdict that would unequivocally settle the matter of the trust’s governance.
The Bahamas Supreme Court decisively dismissed the case. Chief Justice Sir Ian Winder revealed that the ruling was made on October 17 but was not publicly disclosed by the island chain’s highest court until Tuesday, January 6, 2026.
The ruling was immediately interpreted as a decisive moment, affirming Adam Stewart’s stewardship of the company.
The ruling is seen as a “major victory” and a “vindication” of Adam Stewart’s successful leadership, providing a “welcome moral boost” for the Jamaica-based side of the family.
In his reaction to the court’s decision, the relieved SRI Executive Chairman addressed the claims made against his leadership and the company’s management.
“The fraud examiner’s claims were speculative and baseless and founded on incomplete information”.
However, “Despite the allegations being unproven, speculative and inherently flawed, they are being taken seriously and handled with due consideration, by the Advisory Board, the Cromwell Trust and SRI’s Board.”
While this ruling brought a definitive end to the Bahamas case, it does not mark the end of the wider family legal battles.