Star Marianas Air Appeals Ruling in Port Authority Dispute
In an ongoing legal saga, Star Marianas Air (S2, Tinian) and the Commonwealth Ports Authority are making moves to challenge a mid-October summary judgment related to alleged breaches of a 2009 airline use agreement. The appeal, filed with the Northern Mariana Islands (CNMI) Superior Court, seeks to overturn the judgment and addresses discrepancies in charges and services outlined in the agreement.
Star Marianas Air, a commuter airline operating in the CNMI region, connects Guam International, Saipan, Rota International, and Tinian with its fleet of Piper aircraft. The airline contends that the Ports Authority, responsible for managing and operating airports in CNMI, violated six sections (ss.) of the airline use agreement.
The alleged breaches include:
- s.7.01: Imposing first-year charges on a per-passenger basis for the entire duration of the agreement.
- s.7.02: Failure to calculate user charges based on actual airport service and facility usage.
- s.7.05: Neglecting to calculate charges based on the actual cost of providing services and facilities.
- ss.7.06 and 7.07: Failing to annually recalculate fees based on criteria specified in ss.7.01, 7.02, and 7.05.
- s.7.10: Not calculating rates and charges for preceding fiscal years to determine overpayments or underpayments.
The legal dispute began in December 2020 when Star Marianas sued the Ports Authority over these alleged breaches. After a series of legal proceedings, Superior Court Associate Judge Joseph Camacho initially denied Star Marianas’ request for partial summary judgment in September 2023, citing unresolved issues.
However, on September 27, Judge Camacho reversed his decision, granting partial summary judgment after finding that the Ports Authority breached ss.7.05 and 7.08. Despite this, he opted to send the case to trial, as he ruled in favor of some of the Ports Authority’s counterclaims, asserting that Star Marianas had breached s.7.13 due to non-payment.
The legal battle intensifies as both parties, Star Marianas and the Ports Authority, have submitted motions appealing the decision. Representing the Ports Authority, Robert T. Torres contends that Judge Camacho made legal errors in his decision, while Mark Scoggins, representing Star Marianas, argues that corrections are necessary for an efficient continuation of the case.
A hearing to address the judgment disputes and determine any monetary damages payable is scheduled for December 12, 2023. The outcome of this appeal will shape the resolution of the protracted legal dispute between Star Marianas Air and the Commonwealth Ports Authority.