‘RB’ grateful with court’s decision to dismiss CMS suit

Saipan Mayor Ramon Blas “RB” Camacho is grateful for Superior Court Associate Judge Joseph N. Camacho’s decision to dismiss Construction & Material Supply, Inc.’s civil suit against the Mayor’s Office of Saipan.

“I appreciate the court that really reviewed carefully [the case] because all I’m asking for is the public benefit. It’s not about being against the system, but we have to really look carefully what’s for the people. So, why I’m doing is I’m just getting that coral to repair the road. My concern is the safety of the motorists. I’m not going to wait until something seriously happens that will kill a motorist. So as a mayor I need to fix those roads. It’s okay if they charge me, the quarry charges me, [the Department of] Public Lands charges me, if I’m selling the coral. But I’m not. I’m just trying to serve the people. I really appreciate the court for carefully reviewing that, thank you.” he said in an interview with Saipan Tribune.

Judge Camacho last Wednesday granted mayor Camacho’s motion to dismiss a civil complaint brought against the MOS and the Municipality of Saipan by CMS.

CMS had initially sued for over $36,126.25 in unpaid invoices for quarry products provided to the Mayor’s Office of Saipan, claiming that the mayor’s office was aware that they had supplied and delivered 100 cubic yards of coral or raw materials, which is above the approved limit set by the Department of Public Lands.

However, in an order issued by judge Camacho last Wednesday, he noted that the Mayor’s Office of Saipan is an unchartered municipality, which limits its ability to be sued except in certain situations, such as when it complies with procurement rules and regulations. In this case, the judge ruled that the civil complaint did not meet those criteria.

“One of those situations is when MOS complies with procurement rules and regulations such as vendors or employment contracts… This case is not one of those situations,” said judge Camacho

According to judge Camacho, the only valid contract in question was the Temporary Occupation Agreement between CMS and the Department of Public Land, with the Mayor’s Office of Saipan being only an intended beneficiary of the agreement.

He noted that the DPL letter, dated July 11, 2023 “did not go through the procurement process/regulations, so it is not a valid contract for purposes of suing MOS.”

CMS had argued that a contract existed between them and the mayor’s office through the Saipan municipality, but the judge found that no valid contract complying with procurement regulations existed between the parties.

Mayor Camacho had been represented by attorney Michael Evangelista, and Evangelista emphasized the public benefit provision of the quarry operating permit, which exempts CNMI government agencies from paying charges for quarry materials under certain conditions. Evangelista argued that the Saipan mayor and the municipality of Saipan are intended third-party beneficiaries of this provision.

Evangelista said, “Section 11 clearly makes the mayor of Saipan, together with the Saipan municipality and the people of Saipan, intended third-party beneficiaries of the temporary occupancy agreement which, likewise, indisputably constitutes a contract between plaintiff and DPL.”

Evangelista added that the CMS’ complaint relies on a letter issued by the secretary of the DPL “purporting to condition and limit Mayor RB’s access to quarry materials under the public benefit provision.”

Evangelista said the public benefit provision itself reserves no such authority in the DPL secretary.

“The Office of the Mayor of Saipan and the municipality of Saipan are intended third-party beneficiaries of the public benefit provision. The public benefit provision is part of the consideration for the Commonwealth’s grant of quarry privileges to plaintiff, as the permit, or Temporary Occupancy Agreement, is a contract between plaintiff and DPL.”

Evangelista said that the TOA clearly states in Section 11 that the only benefit CMS is entitled to for providing quarry materials to government agencies like the Mayor’s Office of Saipan is exemption from paying quarry royalties. He said that therefore, the DPL secretary couldn’t change the contract terms to reduce the benefits for mayor Camacho and other government agencies unless allowed by Commonwealth law.

In conclusion, judge Camacho dismissed CMS’ claims for breach of contract, stating that no valid contract existed between CMS and the defendants.

“The TOA allows CNMI government agencies such as MOS to receive quarry materials without incurring any charges when there is prior written consent from DPL,” said judge Camacho. “Defendants did receive DPL’s consent. Defendants as an intended beneficiary complied with the terms of the TOA, and because the TOA is a valid contract, plaintiff’s quantum meruit/unjust enrichment claims fail.”