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Landowner sues firm over unpaid $1.35M land lease
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Posted on Jul 11 2005
A landowner claimed to have suffered damages in the amount of $1.35 million over a company’s alleged failure to make lease payments involving four parcels of land on Saipan.
In a civil lawsuit filed with the Superior Court yesterday, Juan Borja Camacho accused Hawaiian Trading Co., which does business as CB Development, of failing to honor its obligation under lease agreements executed by the parties almost 10 years ago.
Cepeda’s lawyer, Joaquin DLG. Torres, said the landowner fulfilled his obligations under the lease agreements.
The complaint stated that Camacho and the company entered into the agreements on Dec. 14, 1995 for a 53-year lease of four lots. Two of the lots measure 105 square meters, while two others have sizes of 932 square meters and 938 square meters. The agreements pegged the total lease price at $1.35 million.
According to Torres, the company was obligated to pay Camacho and his siblings 10 percent of the lease price, less a $2,000 deposit, at closing of the lease transactions under the agreements.
The lawyer said the lease agreements also required the company to pay Camacho and his siblings 10 percent per annum interest on the net lease price, which were to be made on the first day of each month right after the transaction’s closing.
The lease agreements reportedly required Hawaiian Trading to pay Camacho and his siblings the full outstanding balance of the net lease price on the 25th month after the transaction’s closing, which Torres claimed to have fallen on Dec. 2, 2001.
Despite the provisions of the agreements, Torres said the company failed to make payments to Camacho.
“As a direct and proximate result of defendant’s failure to perform, [Camacho] has been damaged in the sum of $1.35 million,” Torres said. He also asked the court to terminate the lease agreements.
