Based solely on Manglona’s testimony, the government attempted to prove that the steps Manglona took to find new tenants were insufficient.
The government did not produce any witnesses or other evidence establishing that Manglona’s efforts were inadequate.
To the contrary, Manglona testified about his fruitless attempts to locate new tenants, and produced some evidence to that effect.
The case arose from a lease the government had with Manglona for office space at a warehouse he owned by the airport.
The government signed a multi-year lease with Manglona, but several years before the lease expired, the government abandoned the premises.
The government still owed Manglona over $1.8 million in rent for the remainder of the lease term.
Manglona sued the government for the $1.8 million it would have paid him if it had honored the lease.
The Supreme Court also found that the prejudgment interest rate awarded by the Superior Court was inadequate.
Prejudgment interest is interest that accrues on money that one party should have paid another, but failed to do so.
In this instance, Manglona was entitled to interest on the $1.8 million because he was entitled to that money under the terms of the lease.
Since the government failed to honor the lease, Manglona suffered harm from not receiving the money when he should have, and as a result, is entitled to be compensated for that loss.
The Supreme Court found that a 3 percent prejudgment interest rate awarded by the Superior Court was inadequate to compensate Manglona for his actual losses.
The case was remanded to the Superior Court to determine an adequate interest rate that would compensate Manglona for his actual losses.
Attorney Douglas F. Cushnie represented the appellant while Assistant Attorney General Anthony Welch argued for the government.
The high court decision was signed by Chief Justice Miguel S. Demapan, Justice Alexandro C. Castro, and Justice Pro Tem Robert J. Torres.
The Supreme Court’s full opinion is Joaquin M. Manglona, v. Government of the Commonwealth of the Northern Mariana Islands, 2010 MP 10, and can be found at http://www.justice.gov.mp/.
