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Company sues new management of Gold Beach Hotel over lease dispute
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Posted on Feb 17 2006
A company has sued another for allegedly failing to make full payments on the $1.5 million lease of Gold Beach Hotel in Garapan
Mari Sai Inc., through counsel Danilo T. Aguilar, sued Elysium Inc., the new management of Gold Beach Hotel, for alleged breach of lease.
Mari Sai asked the Superior Court to compel Elysium to pay all amounts owed it, plus attorney’s fees and court costs.
The Saipan Tribune contacted Elysium yesterday, but no one was available to comment.
Aguilar stated in the complaint that on Nov. 1, 2004, his client and Elysium Inc. executed an assignment of lease over a real property, Gold Beach Hotel.
In exchange for this assignment of lease, defendant agreed to pay the amount of $1.5 million, Aguilar said.
The lawyer said that on Nov. 10, 2005, plaintiff and defendant entered into an amendment of lease setting a schedule for payment.
He said that on May 30, 2005, Elysium failed to make a scheduled payment of $250,000.
“Despite continued demands for payment by plaintiff, defendant only paid a partial payment of $120,000,” Aguilar said.
He said that on Nov. 30, 2005 another payment of $500,000 was due but Elysium failed to pay.
On the following month, the parties again amended the assignment of lease whereby all unpaid payment under the lease agreement were to accrue interest at 18 percent per annum, in addition to the principal amount.
“Despite repeated demands for payments of sums due under the lease, defendant has failed to make full payments on the assignment lease,” Aguilar said.
Defendant has only paid the interest payment and nothing toward the principal amounts,” Aguilar added.
