Castle-shaped hotel up for auction

In March 2013, a company held a groundbreaking ceremony for the completion of the long-abandoned castle-shaped hotel across the Francisco C. Ada/ Saipan International Airport. Next month, the hotel building is set for auction.

At the groundbreaking ceremony attended by Gov. Eloy S. Inos, PDI Capital Group Korea called the seven-story building with a rooftop pool as Forest Hill Hotel. But according to court papers, the building is called Hotel Palace.

Attorney Michael Dotts, counsel for Dae Dong Corp., told Saipan Tribune yesterday that the building will be for auction on June 24, 2014, and that proceeds will be used to pay judgments for his client and a client of attorney Joshua Berger.

Dotts said Tim Goodwin’s company, Pacific Rim International, was appointed to handle the auction for the court.

“I am not sure where the auction will actually be held. Potential bidders can contact Tim Goodwin of Pacific Rim International [at 234-9351],” Dotts said.

Dotts said it will be good for the community if someone will finally finish the hotel.

Saipan Tribune learned that the hotel has 70 rooms and there’s space to build 30 more.

Last week, Superior Court Associate Judge David A. Wiseman issued a judgment in favor of Dotts’ client, Dae Dong Corp. against Jae Hyun Park, Han Sang Eok, Moon Yoo Suk, An Jong Ho, and Philip S. Berg Co. Ltd., in the total amount of $93,500, jointly and severally.

Wiseman said Dae Dong Corp. and defendants entered into a contract on April 1, 2007, to coordinate maintenance of the Hotel Palace Building project.

Defendant Moon Yoo Suk promised that the defendants would pay Dae Dong Corp. once the property that plaintiff was involved in maintaining was assigned.

On Sept. 3, 2011, without notice to Dae Dong Corp., the property was assigned to Philip S. Berg Co. Ltd., a related company to the other defendants.

However, defendants failed to pay Dae Dong Corp.

On April 13, 2012, after learning of the assignment that had occurred on Sept. 3, 2011, Dae Dong Corp. ceased further performance.

At that time, $142,500 was owing to Dae Dong Corp. on the contract.

In September 2012, Dae Dong Corp. sued the defendants for breach of contract, unjust enrichment, and fraud. In October 2013, the parties reached a settlement and the court dismissed the matter.

Under the settlement deal, the defendants agreed to pay Dae Dong Corp. $85,000 in five installments. The installments were supposed to start on Jan. 1, 2014, and end on or before May 1, 2014. Defendants failed to make a single payment.

Dae Dong Corp. then asked the court to enforce the settlement agreement last March 13. Wiseman granted the motion.

Seong Jeo Cho, through counsel Berger, has a related court action involving the same defendants. Berger obtained a default judgment against the defendants.

Berger is now moving forward with a judicial auction of the Hotel Palace Building.