Owner of IMC sued for non-payment of rent, leaving premises in bad shape

A company that rents out commercial space has sued the owner of the Island Medical Center for allegedly failing to pay rent for its leased space in Susupe and for leaving the premises in bad condition.

Golden Bird Corp. asked the Superior Court to order the Micronesian Health Corp., owner of Island Medical Center, to pay $76,658.54 on the promissory note and initial lease, plus accrued interest, and collection expenses, including attorney’s fees and court costs.

Golden Bird also demanded payment of $16,500 plus $325 for power, $300 for bank charges, and $324.74 for fuel charges on the lease and leased premises.

Golden Bird lawyer Richard W. Pierce stated in the complaint that prior to July 1, 2006, Micronesian Health leased space from Golden Bird in Susupe for the Island Medical Center.

The lawyer said Micronesian Health defaulted on the lease and fell behind in its payments.

In order to induce Golden Bird to continue to lease the commercial space to Micronesian Health, to forego collection efforts on the unpaid rent and to honor its promise to pay rent, Micronesian Health executed a promissory note, Pierce said.

In the note, Micronesian Health vice president Anthony Glad acknowledged liability in the amount of $76,658.54, with interest of 12 percent per annum.

Despite demand, Pierce said, Micronesian Health failed to honor its commitment to Golden Bird and has refused to pay the debt.

“The amount due and owing Golden Bird under the promissory note and unpaid rent for the period prior to July 1, 2006, is $75,658.54 plus interest accrued and accruing on the unpaid balance at 12 percent per annum,” the lawyer stated.

In the initial lease and in the promissory note, Pierce said, Micronesian Health promised to pay Golden Bird expenses related to collection charges, including attorney fees and costs, incurred by the plaintiff collecting the debt.

Pierce said that, by a written lease agreement effective July 1, 2006, Micronesian Health rented from Golden Bird its commercial space in Susupe for the Island Medical Center.

The term of the lease was five years, with rent payable on the 15th of each month in the amount of $5,000 and reduced to $3,000 per month effective January 2008.

From 2007 onward, Pierce said, Micronesian Health defaulted with its obligations under the lease.

He alleged that the defendant fell behind in its rental payments for the leased premises, despite its repeated promises to pay and the presentation of checks that were subsequently dishonored by the bank.

“Upon receiving a second, written demand for payment of the rent and other items or possession of the leased premises, Micronesian Health vacated the premises on or about the first full week of November 2008,” Pierce said.

Contrary to its obligation to Golden Bird, Micronesian Health left the leased premises “in poor, physical condition,” he said.

“Because of Micronesian Health’s default under the provisions of the lease, Golden Bird has incurred expenses and continues to suffer damages in the amount of lost rent from the leased premises and preparation of the premises for rent,” he added.

The Island Medical Center was closed down by the Department of Public Health in March 2008 due to alleged noncompliance with rules and regulations.

According to DPH’s suspension order, Island Medical Center has a history of “unlawful pattern of practice by issuing health certificates either without blood screening tests or on the basis of false, forged and or altered lab test documentary results.”