Businesswoman cites economic hardships

A Rota airport restaurant owner sued for alleged failure to put up three years worth of rental fees to the Commonwealth Ports Authority has cited “economic hardships attributed to the fall of the CNMI travel and tourism industry” as a defense against the civil complaint that faulted her for breach of contract.

Businesswoman Celeste S. Mendiola, proprietor of airport concession booth Chadd’s restaurant, has appealed for the reinstatement of the 1,300-sq.-ft. restaurant space that the CPA previously leased out to her inside the Rota Airport Terminal Building.

The Hawaii-based entrepreneur, who claimed to have received the Superior Court civil complaint summons only last March 27, 2002, requested that she be allowed to assume a $200 per month payment plan from her $60,000 debt balance beginning June 1, 2002.

“I had repeatedly requested payment assistance pursuant to the guaranteed annual concession fee and percentage agreement. Daily sales receipts submitted monthly as per agreement to CPA reflected economic downturn indicating a steady trend in shortfalls of projected revenue,” Mendiola stated in her answer to the civil complaint filed at the trial court.

The defendant also blamed the CPA’s order to post “No Smoking” signs within the leased restaurant premises for the business slowdown at her snack bar.

“Therefore, I request your favorable reconsideration based on these facts and circumstances contributed by economic hardship,” she appealed.

The CPA filed the civil suit against Mendiola last November 2001, seeking to collect some $60,000 in outstanding rental fees that the defendant allegedly had failed to settle in the last three years.

The businesswoman had reportedly agreed to pay the CPA some $12,000 per month in exchange for the 1,300-square feet restaurant space inside the Terminal Building at the Rota airport, where she operated a snack bar.

The ports authority, last October 11, 2001, had notified the defendant regarding the termination of the ten-year lease due to alleged breach of contract.

Prior to this, Mendiola was also informed that she was in default for non-payment of rent for the periods commencing October 1998 through August 2001, according to court documents.

The CPA, in its court complaint, had asked the court to grant it judgment, by declaring the lease signed between the two parties as void.

The plaintiff also believes it is entitled to possession of the premises, together with the clean title to the premises and other components.