THE Commonwealth Ports Authority has proposed a settlement conference with Star Marianas next week to discuss their dispute over unpaid fees, alleged unmet obligations and other issues pertaining to the airport facilities on Tinian, Saipan and Rota.
The proposed settlement conference is CPA’s response to the request of the Senate leadership who invited the CPA board members and Star Marianas general manager Robert Christian to a meeting on March 23, 2021.
During the meeting, which was presided over by Senate President Jude U. Hofschneider, the senators asked CPA and Star Marianas to settle their differences.
In his letter to Star Marianas’ legal counsel Mark Scoggins, CPA attorney Robert T. Torres lists the following topics that can be discussed in settlement conference:
• The $2,586,892.36 of open invoices due and owing from Star Marianas to CPA collectively for enplanement fees, miscellaneous fees, and airline settlement as of March 19, 2021.
• Star Marianas’ response to CPA’s reconciliation figures.
• Star Marianas’ move to the Tinian West End terminal.
• Star Marianas’ concerns with the Rota terminal.
Torres said these have been long-standing disputes and CPA is committed to diligently pursue their resolution through a settlement conference.
CPA also responded to Star Marianas’ “mediation discovery request.”
Torres said it is “disappointing, but not surprising” that Star Marianas is making an assertion that “the parties should address what Star Marianas thinks is a ‘preliminary’ issue, of Star Marianas demanding to audit CPA’s books and records as far back as 2015 as a basis for Star Marianas’ damage complaint.”
He noted that the CPA board and Star Marianas owners have just met with the senators, and the parties agreed to commit themselves to a settlement.
Torres said Star Marianas’ demand for an audit based on the Airline Use Agreement provisions does not serve the purpose of the AUA provisions, which are intended to allow an airline to audit CPA’s books and records in order to determine whether the fees and charges paid by the airline are consistent with the provisions of the AUA.
Torres said the purpose of Star Marianas’ demand for audit is “to tee up” its damage claim against CPA in the pending litigation.
For its part, CPA has a pending motion to dismiss the lawsuit based on Star Marianas’ failure to adequately plead damages, among other issues.
“Star Marianas says it wants to settle and resolve the dispute, but its actions have been, and currently are, to file complaints in multiple venues and litigate. Meanwhile, your client has been issuing critical comments on CPA’s alleged unwillingness to settle, when the record speaks quite clearly for itself that it is Star Marianas that has so far been unwilling to come to any settlement table or meeting in good faith. CPA is not convinced that it can rely on Star Marianas to make the same representation to the public that Star Marianas makes to CPA on this matter,” Torres told Scoggins.
