Continental asks federal court to dismiss CPA’s lawsuit

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Posted on Dec 08 2005
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Continental Micronesia Inc. has asked the federal court to dismiss the lawsuit filed by the Commonwealth Ports Authority.

Continental, through counsel attorney David Ledger, filed a notice of removal of CPA’s lawsuit from Superior Court to the U.S. District Court for the NMI.

In its answer to the complaint, Ledger asserted, among other things, that Continental does not owe the fees being demanded.

Ledger said his client is not required to obtain a ground-handling permit.

The lawyer said Continental admits that it is a party to the Airline Use Agreement and Lease of Premises, but denies that CPA’s interpretation of such agreement is correct or constitutes grounds for CPA to prevail in this civil action.

Ledger moved the federal court to dismiss the lawsuit with prejudice and award his client attorney’s fees and court costs.

In his notice of removal, Ledger said CPA’s complaint incorrectly identifies Continental Micronesia as a CNMI corporation.

Continental Micronesia, he pointed out, is a State of Delaware corp. with its principal place of business in Guam.

Ledger also stated that the amount in controversy exceeds $75,000, which is enough to transfer the case to federal court.

The CPA sued Continental Micronesia over the allegedly unpermitted use of airport facilities for commercial ground handling operations for other airline companies, such as Japan Airlines and Northwest.

CPA, through attorney Robert T. Torres, said Continental unjustly enriched itself by engaging in commercial ground handling without a permit from the agency, demanding the airline company pay over to it the proceeds derived from those airport operations.

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