Attorneys Colin Thompson, left, and Janet King, right, with their client Hideaki Sawada pose for Variety at the local courthouse on Friday.
JURORS on Friday ruled in favor of property owner Hideaki Sawada, who sued businessman David Hood over a lease dispute for a proposed boutique hotel in Garapan.
Represented by attorneys Colin Thompson and Janet King, Sawada was awarded by the jurors $160,250 for breach of contract.
Superior Court Presiding Judge Roberto C. Naraja presided over the jury trial, which started on Jan. 22.
After the trial, Thompson said, “Mr. Sawada won all the claims that he brought. He had two claims won, for breach of contract and one for breach of the duty of good faith and fair dealing.”
“The jury found Mr. Hood breached the contract and awarded … $160,250 for breach of contract. The jury also found Mr. Hood and his company breached the duty of good faith and fair dealing but did not award any damages on that claim,” Thompson added.
“The jury did not award Hood anything for his counter claims,” he said.
Hood was represented by attorneys Stephen Nutting and Bob O’Connor.
Nutting said they will file an appeal. “We’re extremely disappointed with the jury’s verdict. Obviously, we will file an appeal on this matter, and our post-trial motions will be of interest,” he said.
Background
The dispute stemmed from a 2016 lease for the second floor of May Ten Building in Garapan owned by Sawada, where Hood planned to develop an 18-room boutique hotel.
Central to the dispute is the interpretation of a handwritten clause by Hood in the lease that stated: “Lease is subject to a successful Permit & Construction Bid. Bright Star LLC can cancel the lease anytime until these items are complete and approved by Bright Star LLC.”
A breach of lease agreement complaint was filed by Magic International Corporation, owned and operated by Sawada, against Hood and Bright Star.
Magic International sued Bright Star and requested that the court issue a judgment for rent in the amount of $142,500, representing rent due for the period from Feb. 1, 2016, to Aug. 30, 2018, plus interest.
The plaintiff also sought an award of $18,000 for late charges due to the defendant’s failure to pay all unpaid rent within 10 days, in addition to regular rent and a security deposit in the amount of $20,000.
In addition, the plaintiff asked for damages and for attorney’s fees, litigation costs and other fees.
Sawada, in his complaint, stated that Hood breached the lease agreement by failing to pay rent, delaying the project’s progress, and causing significant financial harm.
Sawada asserted that the lease became enforceable upon signing, and Hood’s failure to meet his obligations resulted in unpaid rent, lost financial opportunities, and harm caused by Hood’s inaction. He also claimed that Hood acted in bad faith by creating delays and making excuses to avoid fulfilling his contractual responsibilities.
Bright Star and Hood have denied the allegations and filed a counterclaim against Sawada.
According to Bright Star, the lease never took effect, “and defendants never took possession of the property because conditions subsequent went unmet, and no obligation related to the lease such as the right to quiet enjoyment in Bright Star’s construction and operation of the hotel ever arose.”
Bright Star sought the return of its $40,000 security deposit, along with an award for attorney’s fees and costs.
