Proposed Garapan land lease agreement is terminated

The executor of an estate that owns parcels of land in western Garapan where Tony Roma’s and Capricciosa’s restaurants are located has agreed with the owner of the establishments to void and terminate their proposed new lease agreement for another 55 years.

Probio DLC Cabrera Jr., executor of the estate of Probio M. Cabrera (deceased), and Triple J Saipan Inc. chair and chief executive officer Robert H. Jones signed the termination of real property lease agreement last Thursday.

Because of this development, the parties, through their lawyers, withdrew from the Superior Court Cabrera’s motion to approve the lease agreement.

The lawyers—Vincent DLG Torres representing Cabrera and James R. Stump representing Triple J Saipan Inc.—said that, because the parties have agreed to terminate the proposed lease agreement, this lease deal is now null and void, which makes the motion to approve moot.

Superior Court Associate Judge Joseph N. Camacho set a hearing for Sept. 12, 2019, to take up the matter.

The lawyers did not explain in court papers why the parties’ terminated their proposed lease agreement.

Camacho earlier invited Gov. Ralph DLG Torres, some government agencies, the Hotel Association of the NMI, and the Saipan Chamber of Commerce to submit amicus curiae briefs on issues involving Article 12 of the NMI Constitution and the renewal of land leases. He issued the invitations in connection with Cabrera’s request for the court to approve the new lease with Triple J Saipan Inc.

Amicus curiae (friend of the court) refers to a brief filed in court by an entity or an individual who is not a party to a case. It offers information, expertise, or insight that is relevant to the issues in a case.

Camacho asked the parties to submit a brief on the question: Does Article 12 prohibit a corporation, or its subsidiaries that took over the lease, from entering into a new lease if entering into a new lease would give the lessor a long-term interest in the real property for more than the original 55 years?

The judge has expressed concern that the proposed lease in this case may violate Article 12 restrictions. That article of the NMI Constitution restricts long-term interests in real property to persons of NMI descent.

In Triple J’s support of Cabrera’s motion to approve the lease filed last July 16, Stump argued that Article 12 restrictions are inapplicable in this case as the proposed lease does not take effect until the present lease expires and that the proposed lease is with parties that have no common ownership interests.

Currently, Stump said, there is an existing lease on the property that was established on April 2, 1980, between Probio M. Cabrera and a Jerry W. Crowe with an expiration date of March 31, 2020.

Camacho held a status conference yesterday afternoon at the parties’ request.
Lessee Triple J Saipan Inc. and lessor estate of Probio M. Cabrera signed the proposed lease agreement last May 7 and 22, respectively.