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12 23Fri04182014

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Back Local News Superior Court rules that DFS lawsuit is not ‘frivolous’

Superior Court rules that DFS lawsuit is not ‘frivolous’

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HAGÅTÑA (DFS) – The Superior Court of Guam yesterday ruled in favor of DFS Guam LP when it denied a motion by Lotte Duty Free Guam and the Guam International Airport Authority seeking sanctions against DFS for filing a lawsuit over the duty free concession at the airport. DFS filed the lawsuit May 30 alleging misconduct by GIAA and Lotte in the request for proposal process.

On July 19, the court dismissed the lawsuit without prejudice, saying it lacked subject matter jurisdiction. The court ruled DFS had not exhausted its remedies under Guam procurement law and should have proceeded first to the Office of Public Accountability. In making the ruling without prejudice, the court left the possibility that DFS could re-file the suit in the future.

After the suit was dismissed, Lotte and GIAA filed motions asking for sanctions and financial penalties on the basis that DFS’ claims were frivolous and without merit. In yesterday’s ruling, Judge Michael Bordallo said he was not persuaded that DFS’ lawsuit was frivolous, nor filed for an improper purpose and that it did not raise unreasonable arguments.

“Based on Judge Bordallo’s ruling today, DFS looks forward to pursuing the merits of its case before the Guam OPA,” DFS said in a release yesterday.

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