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PRMC ordered to pay $430K
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Posted on May 03 2019
Pacific Realty and Management Corp. has been ordered to pay $430,000 in a lawsuit filed by Li Fen Luan.
The Superior Court found Luan to be a bona fide purchaser of a 298-square-meter property in Chalan Kanoa owned by Calvin Cabrera Tagabuel. However, Luan has been deprived the right to the property because PRMC continues to operate its business on the grounds.
The court directed PRMC to pay Luan $80,000 in compensatory damages, $50,000 for trespassing, and $300,000 in punitive damages.
Tagabuel was ordered to pay Luan $10 in punitive damage.
The court entered its order by default because Tagabuel failed to appear and oppose Luan’s claims.
According to court information, Luan filed the lawsuit back in 2016 because she entered into a lease agreement with Tagabuel for 55 years at $15,000. However, Luan was deprived her right to the property because PRMC entered into a lease extension agreement with Tagabuel shortly after.
PRMC and Tagabuel had a previous lease agreement that had expired.
Tagabuel and PRMC president Cheong Pui Ng had a lease agreement on the property in 1999 for 12 years with an option to extend the lease. After the lease expired in 2011, Tagabuel and Ng agreed to an extension of three years.
The court found that no lease extension was ever recorded.
The three-year extension expired on Sept. 10, 2014 and no agreement was discussed to further extend PRMC’s lease.
On Sept. 30, 2014, Luan entered into a lease agreement with Tagabuel for a term of 55 years at $15,000. The term was to start from Nov. 5, 2014, to Nov. 4, 2069.
On Nov. 4, 2014, Tagabuel signed a receipt for Luan for full payment of $15,000.
The lease agreement was recorded with the Commonwealth Recorder.
On Dec. 16, 2014, Tagabuel entered into a new term with Ng who paid $15,000 despite Luan already paying for the property.
PRMC continued to operate its business on the property.
