Sandals Resorts International has suspended construction on what was to be its fourth hotel in St Lucia.
This is pending the outcome of court action taken by The Landings Resort.
The Landings obtained an injunction to settle a dispute with Sandals resorts over a small portion of land that St. Lucia's Tourism Minister Dominic Fedee said may have to do with the encroachment of a drain.
Legal action was taken shortly after Sandals Resorts broke ground on the Pigeon Island site in May.
Because of delays caused by having to address this legal action, Sandals said it decided to end the employment of its 37-member Projects Management Team and sub-contractors who were already engaged on the site.