SUSUPE Saipan — The Northern Mariana Islands Supreme Court on Jan. 9 referred two cases regarding commercial properties foreclosed by the Commonwealth Development Authority for settlement. Oscar C. Camacho acting chief executive officer for CDA; expressed concern about what the defendants would be asking to settle the cases given that they involve $3.12 million in unpaid loans interests and fees.
Herbert Soll former NMI attorney general; has been assigned by the NMI Supreme Court as justice pro tem to facilitate the settlement.
The two cases which involved Pacific Gardenia Hotel and Westpac Freight were appealed by lawyers following separate rulings by Associate Judge Ramona V. Manglona of the Superior Court of the Northern Mariana Islands ordering the defendants to pay a total of $3.12 million in unpaid loans interest and fees.
In a ruling issued on July 26 2006 Manglona ordered Sy’s Corp. which did business as Pacific Gardenia Hotel to pay CDA $2.69 million for multiple loans acquired from 1985 to 1993 against which the establishment was mortgaged. The ruling also required that Pacific Gardenia Hotel be sold if no payment was made within three months of the order. Pacific Gardenia Hotel closed operations in March 2006. The hotel was operated by Ronald D. Sablan former president of the Hotel Association of the Northern Mariana Islands from 1995 to 2004.
In his Oct. 10 2006 letter to the associate judge Rex. I. Palacios court-appointed receiver for Pacific Gardenia Hotel; said closing down the establishment was the only way to “prevent continuing financial loss and deterioration of company assets.”
The case was filed by CDA on Aug. 22 2003. Pacific Gardenia Hotel’s lawyers filed the appeal before the Supreme Court on Aug. 25 2006.
Meanwhile in a ruling issued on Aug. 21 2006 Manglona ordered Antonio S. Camacho to pay CDA $432 974 in financial obligations including several loans obtained in 1986 and 1987. Camacho owns Westpac Freight which was mortgaged to secure the loans. Manglona’s ruling required that the establishment be sold if no payment was made within three months. The case filed by the CDA on Dec. 13 2004 was appealed before the Supreme Court on Sept. 20 2006.
A third case involving an apartment row in downtown Garapan owned by a former director of the NMI Coastal Resources Management Office may also be up for settlement according to the Court.
Manglona had also issued a ruling on the CDA foreclosure case involving Felipe Q. Atalig former CRMO director; who owns Casa de Felipe in Garapan. The CDA filed the case on Dec. 30 2003. The ruling issued on Oct. 2 2006 ordered Atalig to pay CDA $305 634 in unpaid loans interest and fees. As in her two foreclosure rulings the associate judge ordered that the apartment row be sold if no payment was made within three months. Lawyers appealed the case before the Supreme Court on Nov. 1 and moved for settlement conference. MBJ