ANAKS v. Atkins Kroll Saipan

Supreme Court of The Commonwealth of The Northern Mariana Islands·Decided March 13, 2026·No. 2024-SCC-0011-CIV·Published·Castro

Opinion

E-FILED CNMI SUPREME COURT E-filed: Mar 13 2026 01:35PM Clerk Review: Mar 13 2026 01:35PM Filing ID: 78716320 Case No.: 2024-SCC-0011-CIV Judy Aldan

IN THE Supreme Court OF THE

Commonwealth of the Northern Mariana Islands ANAKS OCEAN VIEW HILL SAIPAN HOMEOWNERS’ ASSOCIATION, LTD., Petitioner-Appellant, v. PERRY INOS JR., ET AL., Respondent-Appellees, AND

ATKINS KROLL SAIPAN, INC., Applicant-Appellee. Supreme Court No. 2024-SCC-0011-CIV

SLIP OPINION Decided March 13, 2026

CHIEF JUSTICE ALEXANDRO C. CASTRO JUSTICE PRO TEMPORE ROBERT J. TORRES, JR. JUSTICE PRO TEMPORE F. PHILIP CARBULLIDO

Superior Court No. 22-0103-CV Judge Pro Tempore David A. Wiseman, Presiding ANAKS v. Atkins Kroll Saipan, 2026 MP 1

C.J. CASTRO: ¶1 ANAKS Ocean View Hill Saipan Homeowners’ Association, Ltd. (“ANAKS”) appeals the Superior Court’s judgment affirming the Zoning Board’s issuance of a conditional use permit to Atkins Kroll Saipan, Inc. ANAKS contends that the Board violated notice and hearing requirements under the Saipan Zoning Law of 2013 (“SZL”) and the Commonwealth Administrative Procedure Act (“APA”) and that the Board’s approval was arbitrary and capricious, ultra vires, and unconstitutional. We affirm the Superior Court’s judgment. I. FACTS AND PROCEDURAL HISTORY ¶2 In December 2021, Atkins Kroll Saipan, Inc. (“Atkins Kroll”) applied for a conditional use permit to construct and operate a car dealership with a twenty- seven–bay vehicle repair facility in Puerto Rico, Saipan. The property is within the Mixed Commercial District, where vehicle sales are permitted as of right, but general vehicle repair requires conditional approval. The Ocean View Hill residential community, represented by ANAKS, borders the site. ¶3 The Zoning Administrator certified the application as complete under SZL § 1308(b)(2) and issued a memorandum assessing the proposal and recommending conditions for the Board’s consideration. Before the initial hearing, Atkins Kroll submitted narrative materials, site plans, and supporting documentation describing the proposed development. ¶4 The Board first considered the application at a publicly noticed meeting on January 19, 2022. Notice of the hearing was published in the Saipan Tribune before the meeting. Residents of the Ocean View Hill community appeared and raised concerns regarding traffic, noise, and compatibility with the surrounding neighborhood. ANAKS requested more time to evaluate the proposal and submit further information. The Board continued the matter to allow Atkins Kroll to provide supplemental materials responsive to the concerns raised. ¶5 On February 23, 2022, Atkins Kroll submitted supplemental materials, including traffic and drainage information. Notice of the continued hearing was published in the Saipan Tribune. The Board reconvened on March 9, 2022. During deliberations, Board members referenced potential community benefits of the project while evaluating site suitability. ANAKS, represented by counsel, appeared and asked for more time and a formal contested case hearing under the APA, 1 CMC §§ 9108–9110. The Board continued the matter to March 18, 2022. ¶6 At the March 18, 2022 meeting—held nine days after the March 9 continuation—ANAKS submitted written objections, including a memorandum of law and a technical memorandum prepared by a professional engineer critiquing parts of the application. Among other concerns, ANAKS argued that the record lacked sufficient technical information regarding potential noise and environmental impacts on the adjacent residential community. The materials before the Board did not include a quantitative noise study or predictive modeling of sound impacts. ANAKS v. Atkins Kroll Saipan, 2026 MP 1

¶7 During deliberations, several Board members stated that environmental matters—including noise—would be reviewed by other regulatory agencies, including the Bureau of Environmental and Coastal Quality, as part of the permitting process. The Board declined to conduct a formal APA adjudicatory hearing and proceeded under the public hearing procedures prescribed by the SZL. Nothing in the record shows the Board believed it lacked authority to evaluate compatibility under SZL § 702 or that it delegated that statutory determination to another agency. ¶8 Following additional public comment and deliberation, the Board unanimously approved the conditional use permit subject to nineteen conditions addressing matters such as drainage, landscaping, site design, and operational requirements. The Board voted to approve the permit on April 13, 2022, and issued a written order on April 21, 2022. ¶9 On May 13, 2022, ANAKS petitioned the Superior Court for judicial review under the SZL and the APA, 1 CMC §§ 9101–9115. ANAKS asserted that the Board did not provide adequate notice, denied due process, relied on an unqualified Zoning Administrator, and acted arbitrarily and capriciously in approving the permit. ¶ 10 The Superior Court rejected each claim. It held that ANAKS received adequate notice and a meaningful opportunity to be heard; that the proceedings satisfied due process; that any alleged deficiency in the Zoning Administrator’s qualifications did not affect the Board’s independent authority; and that the Board acted within its discretion under SZL § 702 by approving the permit subject to conditions designed to mitigate identified impacts. The court also held that the Board’s decision reflected a reasoned application of the zoning criteria rather than arbitrary or capricious decision-making. ¶ 11 ANAKS timely appealed, renewing its procedural and statutory challenges and advancing a constitutional claim under Article I, Section 9 of the NMI Constitution. II. JURISDICTION ¶ 12 We have jurisdiction over appeals of trial court decisions reviewing administrative matters. 1 CMC § 9113; Premier Ins. Co. v. Commonwealth Dep't of Lab., 2012 MP 16 ¶ 6. III. STANDARD OF REVIEW ¶ 13 Judicial review of agency action under the Commonwealth Administrative Procedure Act (“APA”) is limited. A reviewing court may set aside agency action only if it is: (i) arbitrary, capricious, an abuse of discretion, or otherwise not in accordance with law; (ii) contrary to constitutional right, power, privilege, or immunity; (iii) in excess of statutory jurisdiction, authority or limitations, or short of statutory rights; ANAKS v. Atkins Kroll Saipan, 2026 MP 1

(iv) without observance of procedure required by law; (v) unsupported by substantial evidence in a case subject to 1 CMC §§ 9108 and 9109 or otherwise reviewed on the record of an agency hearing provided by statute; or (vi) unwarranted by the facts to the extent that the facts are subject to trial de novo by the reviewing court. 1 CMC § 9112(f)(2). ¶ 14 ANAKS invokes four of these grounds, asserting that the Board’s approval of the permit was arbitrary and capricious, contrary to constitutional rights, taken in excess of statutory authority, and without observance of required procedures. ¶ 15 Arbitrary-and-capricious review is deferential. We examine whether the agency’s decision was reasonable and supported by information sufficient to justify the result when it was made. In re Blankenship, 3 NMI 209, 217 (1992). We do not substitute our judgment for that of the agency. Claims that the agency violated statutory, procedural, or constitutional requirements present questions of law, which we review de novo. Premier Ins. Co., 2012 MP 16 ¶ 7. IV. DISCUSSION ¶ 16 ANAKS raises both procedural and substantive challenges to the Board’s approval of the permit. We begin with arguments that concern the legality of the proceedings themselves, ANAKS’ claims that the Board exceeded its statutory authority, and violated procedural requirements as well as Article I, Section 9 of the NMI Constitution. We then consider whether the Board’s decision was arbitrary or capricious under 1 CMC section 9112(f)(2)(i). A.

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