Apr. 23--An appeals court has ruled that a case against the giant Atlantis resort in the Bahamas should proceed in the United States even though its parent company is based in the Bahamas. The decision could open the door for future claims against corporations that are headquartered offshore but have substantial U.S. operations. 

The case was filed three years ago by the family of Victor Meier, now 16, of Utah. Meier was snorkeling with his father off the coast of Paradise Island in 1999 when a motorboat struck him, severing his arm. The motorboat was owned by two water sport companies that serve as vendors for Atlantis and the neighboring Sheraton Grand Resort and Hotel. Attempts to reattach Meier's arm failed. 

The Meiers filed a claim against Atlantis' parents, which include Sun International Hotels Ltd., Sun International Bahamas Ltd., Island Hotel Company Ltd. and Paradise Island Ltd. A Miami judge dismissed the claim citing lack of jurisdiction because the corporations are all Bahamas-based. 

Sun International is traded on the New York Stock Exchange. Its largest property is the 2,300-room Atlantis Resort and Casino on Paradise Island, and the company owns 70 percent of the resort island off the Bahamian capital of Nassau. 

On Friday, the 11th Circuit Court of Appeals in Atlanta reversed the decision, concluding that the company had substantial business operations in Fort Lauderdale, where much of the company's marketing, advertising and booking services are conducted. 

"The financial ties between the Sun Defendants and the Florida subsidiaries suggest a relationship far beyond service contracts," Judge Jane Restani wrote. "It is reasonable to assume that the creation and operation of the Florida Subsidiaries are mere corporate formality, and that the Florida Subsidiaries are agents of the Sun Defendants." 

Representatives from Sun International Hotels were unavailable for comment late Monday, and the defendants' lawyer did not return phone calls. 

The plaintiffs' lawyer, Alan Fein, said holding the case in a U.S. court was crucial because the Bahamas does not have contingent fee agreements, whereby lawyers are paid only if rulings are made in the plaintiffs' favor. Fein also said the Bahamas' heavy dependency on tourism made it difficult to advance cases against hotels. 

"The Bahamian government is very protective of the hotel industry," Fein said. "It's kind of hard to get any trial there, much less a fair and important trial." 

Fein said he hoped to combine the federal suit against Sun International with a state lawsuit against Sheraton. 

The appellate court's decision also has consequences for the case of Chad Humphreys, the 12-year-old Kendall boy who drowned two years in one of Atlantis' pools, after getting stuck in a drain while snorkeling. 

Sun International moved to dismiss the case, which was filed in Miami, citing lack of jurisdiction. Humphreys' lawyer, Andrew Haggard, said Friday's decision would likely expedite the case, and enable it to stay in the United States. 

--The Associated Press contributed to this report. 

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