THE Superior Court found that a landowner has been unjustly enriched in the amount of $249,000 which was paid to her by a businesswoman over a supposed purchase of a property.
Associate Judge Juan T. Lizama on Monday ordered Margarita R. Tenorio to reimburse Guadalupe P. Manglona.
Lizama said Tenorio and Manglona will pay for their own costs of litigation. There will be no award of prejudgment interest for Manglona, he said.
Allowing Tenorio to keep the $249,000 would be “unjust” as it allowed her a double recovery, Lizama said, adding that the defendant received Manglona’s money without having to convey any of her interest in the property.
With respect to prejudgment interest or attorney’s fees, Lizama said due to the unusual circumstances of the case, “a balancing of the equities dictates that Manglona should not be awarded prejudgment interest.”
“Upon examination of the record as a whole, and a balancing of all equitable considerations, this court finds that plaintiff’s conduct has been equally as egregious as that of the defendant,” he said.
Court records showed that in 1990, Manglona was president of Marianas Health Management, owner of Saipan Health Clinic. Dr. Larry Hocog was also part of the clinic as the principal medical professional.
Manglona and Hocog operated the clinic out of the Horiguchi Building in 1990, but found the building to be inadequate for the purposes.
In Oct. 1990, Manglona, Hocog, Tenorio and her husband met at Sunset Restaurant in Susupe to discuss the purchase of the I-Liyang property.
Tenorio owned the building on the property.
Manglona and Tenorio entered into an oral agreement concerning the property. Two days after the meeting, Tenorio received a cashier’s check in the amount of $100,000 from Manglona for the property.
Manglona entered the property not long after the meeting and began renovations, spending $71,910.
Over the period of the next three months, Tenorio received payments from Manglona totaling $150,000 in addition to the original $100,000.
The parties did not enter into a written contract.
In 1991, Manglona severed her relationship with Hocog and the clinic. And as a result of certain other litigation, Manglona discovered she did not qualify under the CNMI Constitution to own real property in the commonwealth.
In a letter, Manglona billed Saipan Health Clinic for rent for February, March, and April 1991 for a total of $9,000. The clinic paid all rental monies to Tenorio.
In April 1991, the plaintiff informed Tenorio in writing that she no longer intended to purchase the I-Liyang property.
Tenorio made payment in the amount of $1,000 to the plaintiff in 1992.
In early 1990, an agreement was negotiated with another company, Niizeki, to lease the I-Liyang property for $1.7 million.
When Manglona informed Tenorio she would no longer proceed with the purchase of the property, the defendant made no attempt to determine if Niizeki was still interested in the lease.
In 1993, Manglona sued Tenorio for unjust enrichment.
During a bench trial the following year, the sole issue was whether the $250,000 transferred to Tenorio constituted a loan.
Then Superior Court Associate Judge Marty W. K. Taylor ruled that the monies transferred were not a loan.
