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CPA sued for alleged breach of contract
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Posted on Jan 31 2005
The Commonwealth Ports Authority is facing breach of contract charges filed by a Guam-based consulting company that CPA had hired for an airport improvement project.
Juan C. Tenorio & Associates accused CPA of not paying over $35,000 of the firm’s total billing for construction management services provided in relation to the Saipan International Airport Asphalt Conversion Project.
In a civil complaint filed in Superior Court yesterday, attorney Danilo Aguilar said CPA and his client entered into an agreement on Aug. 21, 2001 for the firm to provide consulting services for the airport project.
Both parties agreed to an initial compensation of $454,000.
On March 31, 2003, CPA amended the agreement to have the firm perform additional services for an additional payment of $113,000.
Another amendment was made to the agreement on Nov. 10, 2003, with a corresponding $55,595 increase in compensation.
This brings to $622,731 the total amount of compensation that was to be paid to Juan C. Tenorio.
To date, however, CPA has paid only $587,531. The $35,200 balance remains unpaid, Aguilar said.
“Despite plaintiff’s completion of his services and numerous demands for payment, defendant has refused to pay the unpaid balance,” he added.
Aguilar urged the court to award Juan C. Tenorio general damages for breach of contract, attorney’s fees and costs of suit, and post-judgment interest at the legal rate, among other things.
