Southern Airways seeks dismissal of Star Marianas’ federal suit

Southern Airways Express LLC has filed a motion asking the U.S. District Court for the NMI to dismiss the lawsuit filed by Star Marianas Air, Inc. over an $8-million contract between Marianas Southern Airways and the administration of former governor Ralph DLG Torres.

Last June, Star Marianas filed a lawsuit against Southern Airways Express LLC and Marianas Pacific Express LLC who were previously operating Marianas Southern Airways until the airline stopped operating last year.

In the lawsuit, there are two counts in filed against Southern Airways, one alleging an attempt to monopolize the airline industry market in the Northern Mariana Islands, in violation of Section 1 of the Sherman Act, and the other alleging that Southern Airways conspired with its co-defendants to unreasonably restrain trade in that market, in violation of Section 2 of the Sherman Act. 15 U.S.C. §§1-2.

Both claims were based upon a sole source contract entered into between the government of the Commonwealth of the Northern Mariana Islands and defendant Marianas Pacific Express LLC doing business as Marianas Southern Airways—a joint venture between defendant Southern Airways and defendant Keith Stewart—an interisland air passenger and cargo service in the Northern Mariana Islands.

Southern Airways, through attorney Sean E. Frink, now argues that dismissal is warranted because both claims against Southern Airways (and all counts and claims against all three private party defendants) pursuant to Rule 12(b)(6) of the Federal Rules of Civil Procedure, as Star Marianas has failed to state any claim upon which relief should be granted.

In addition, Frink argues that the lawsuit should be dismissed because Star Marianas failed to join the Commonwealth of the Northern Mariana Islands, a necessary and indispensable party under Federal Rule of Civil Procedure 19, in the complaint.

“Plaintiff has failed to state a cause of action against Southern Airways (or either of the other two defendants) under the Sherman Act because Parker immunity prohibits any such claim. Moreover, because the CNMI is a necessary and indispensable party that Plaintiff has failed to join, the Complaint must be dismissed. As such, the Complaint should be dismissed, with prejudice, pursuant to Rules 12(b)(6) and 12(b)(7) of the Federal Rules of Civil Procedure,” said Frink.

District Court for the NMI Chief Judge Ramona V. Manglona is set to hear the matter on Nov. 21.

According to Saipan Tribune archives, last June, Star Marianas, through attorneys Richard Richards and Mark Scoggins, filed a lawsuit against Marianas Southern Airways and its president with the U.S. District Court for the NMI.

Aside from them, Star Marianas also named Southern Airways Express LLC and Marianas Pacific Express LLC as defendants.

Star Marianas has filed six counts of violations of the Sherman Act against Marianas Southern Airways pursuant to an $8-million sole source contract between the airline and the CNMI government under the previous administration.

The Sherman Act aims to increase economic competitiveness by outlawing trusts, monopolies, and cartels.

As relief, Star Marianas is asking the District Court to restrain the defendants from establishing any similar agreements that unreasonably restrict competition and create a “conspiracy to monopolize the CNMI airline industry.”

Star Marianas also wants the court to award them damages in an amount to be determined at trial, and other relief the court may find just and proper.