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Elm’s seeks $50K debt by Guam company
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Posted on Jun 23 2000
Elm’s Inc., owner of Town and Country restaurant and video store, filed yesterday in U.S. District Court here a civil complaint for breach of contract in a bid to collect more than $50,000 debt owed by a Guam-based businessman.
Tom T. Kamiya, president of Guam Y.T.K. Corp. and a Japanese citizen, has failed and refused to pay the $30,000 loan he secured from Saipan businessman Eddie Flores more than three years ago, according to the suit filed by Elm’s lawyer David A. Wiseman.
In court documents, the defendant had blamed the economic crisis confronting Guam as the reason for his failure to meet his financial obligation.
The loan, which was supposedly to be paid in November 1997, has already accrued an interest of about $26,250 at a rate of 25 percent per annum based on the promissory note signed by Mr. Kamiya, the complaint said.
Elm’s is seeking payment of the principal loan plus the interest, whose final amount will be determined at the trial, as well as attorney fees and litigation costs as the defendant promised in the April 29, 1997 note.
The suit claimed that Elm’s has repeatedly demanded payment, but Y.T.K. has refused and failed to settle the debt, and continues up until the filing of the case.
At one point, Mr. Kamiya wrote a letter to Mr. Wiseman in September 1999 to assure him of settling the debt by the end of last year.
“I sincerely appreciate Mr. Flores’ understanding regarding the delay in repayment of the loan due to the unfortunate decline in the economy during the past few years,” read the letter. “I intend to fulfill my obligation… as soon as possible.”
Asking for extension of repayment until Dec. 31, 1999, Mr. Kamiya again promised to pay his loan in the letter, while apologizing for the delay.
“I am confident that Mr. Flores will be fully compensated… for his patience and understanding,” the businessman said.
Mr. Kamiya, who has no address or contact number available in the court documents, has 20 days to respond to the complaint. (Benhur C. Saladores)
