Govendo ex rel. Govendo v. Marianas Public Land Corp.

2 N. Mar. I. 482, 1992 N. Mar. I. LEXIS 7
CourtSupreme Court of The Commonwealth of The Northern Mariana Islands
DecidedFebruary 11, 1992
DocketAPPEAL NO. 90-036; CIVIL ACTION NO. 90-246
StatusPublished

This text of 2 N. Mar. I. 482 (Govendo ex rel. Govendo v. Marianas Public Land Corp.) is published on Counsel Stack Legal Research, covering Supreme Court of The Commonwealth of The Northern Mariana Islands primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Govendo ex rel. Govendo v. Marianas Public Land Corp., 2 N. Mar. I. 482, 1992 N. Mar. I. LEXIS 7 (N.M. 1992).

Opinions

OPINION

VILLAGOMEZ, Justice:

The issue before us is whether the trial court erroneously dismissed plaintiff's complaint under Rule 12(b)(6), Com.R.Civ.P., [486]*486The failure to state a claim upon which relief can be granted.1 complaint set forth three separate causes of action. Since appellant assigns error to the dismissal of all three causes of action, each of them is separately discussed below.

BACKGROUND

A. The Lease Agreement

On March 15, 1988, Marianas Public Land Corporation ("MPLC") leased to AIBIC International Corporation ("AIBIC") Lot No. 004 I 40, containing an area of 40,827 square meters, more or less. The land is situated in San Antonio, Saipan-, and is adjacent to the lagoon. The lease term is 25 years, with an option to extend for an additional 15 years, subject to legislative approval. Under the lease agreement, lessee will pay a fixed annual rental plus a percentage of its gross receipts.

MPLC did not conduct any public hearing regarding the proposed lease prior to its execution.

The purpose of the lease agreement is for AIBIC to construct and operate a first-class hotel complex with at least 250 rooms. The lease agreement does not provide that AIBIC may not build any permanent structure within 150 feet of the high water mark. It only provides that AIBIC shall comply with all Commonwealth laws.

MPLC is a public corporation created under Article XI, Section [487]*4874 of the NMI Constitution, entrusted with the management and disposition of public lands.2

B. The Complaint

On March 2, 1990, Roger S. Govendo ("Govendo"), a minor represented by a court appointed guardian ad litem, filed a complaint against MPLC, AIBIC, and the CNMI Government. The complaint asked the court to (1) declare the lease agreement null and void; (2) order AIBIC to vacate the land and remove its fence; (3) require MPLC and the government to use the land only for public purposes; and (4) require public and legislative participation in future decision making processes regarding public land.

Govendo's prayer for relief is based on three causes of action.

In his first cause of action, Govendo alleges that the board's execution of the lease agreement violated their constitutional duty to act under a strict standard of fiduciary care. In support thereof, Govendo alleges:

a) MPLC leased the largest piece of public land on the western side of Saipan and failed to act as a reasonably prudent trustee in negotiating the agreement.
b) MPLC leased a large chunk of the remaining public land on the west side of Saipan, knowing that there was little public land left on the lagoon.
[488]*488c) MPLC ignored the fact that there are no outdoor recreational facilities belonging to the people of the Commonwealth who are of Northern Marianas descent and the leased property was the most logical piece of. land on the on the [sic] southwest side of Saipan to be used.
d) MPLC did not consider or wrongfully considered the best interests of the public in preserving public land for public uses.
e) MPLC knew that the Director of Natural Resources was a major shareholder of the Lessee and that the Special Assistant for Administration to the Governor at that time was acting as an agent for the Lessee; all this being in violation of Article III, Section 6 and Section 1 of Amendment 40 of the CNMI Constitution. (Conflict of Interest.)
f) The entire decision making process for the lease of this land was done quickly and purposefully to prevent any public hearings or public debate about the lease and, as a result, the decision making was without public input, thereby violating strict fiduciary standards.

Complaint, ¶ 8.

In his second cause of action, Govendo alleges that (a) the leased area under AIBIC's control exceeds five hectares, so as to require legislative approval, which has not been obtained and (b) the lease agreement fails (in violation of law) to prohibit the erection of any permanent structure by lessee within 150 feet of the high water mark.

In his third cause of action, Govendo alleges that the hotel project will result in unsanitary conditions caused by overburdened utilities (e.g. inadequate sewer and water services) which would deprive him of his constitutional right to a clean and healthful public environment.

[489]*489C. Motion to Dismiss

MPLC and AIBIC moved to dismiss the complaint for failure to state a claim, pursuant to Rule 12(b)(6) . As to the first cause of action, they argued that the complaint alleged mere conclusions without alleging the facts upon which those conclusions were based.

As to the first segment of the second cause of action, they asserted that since the lease agreement provided for a leased area of 40,824 square meters, (less than five hectares) and the lease agreement itself was attached to the complaint (and incorporated therein) the allegation that the leased land exceeded five hectares failed as a matter of law.

As to the second segment of the second cause of action, they asserted that the lease agreement need not expressly prohibit the erection of permanent structures within 150 feet of the high water mark for three reasons. First, silence as to prohibition does not necessarily imply permission to act. Second, the lease agreement expressly does not include the 150 feet of land from the high water mark and there was no reason to contain provisions about that land. Third, the lease agreement separately requires AIBIC to comply with all CNMI laws. That includes laws which prohibit the erection by lessee of permanent structures on the beach.

With respect to the third cause of action, the defendants contended that the allegations contained speculations and opinions as to what plaintiff believes may result once the hotel is constructed and thus do not constitute allegations of fact.

[490]*490D. Trial Court's Decision

The trial court granted the motion to dismiss the complaint.3 Govendo timely appealed.

ANALYSIS

I. First causa of Action:

In considering a motion to dismiss for failure to state a claim upon which relief can be granted, the trial court must take the well-pleaded facts as true and admitted. The defendant must then demonstrate that, even after taking the well pleaded facts as true, the plaintiff still fails to state a claim for relief. Scheuer v. Rhodes. 416 U.S. 232, 94 S.Ct. 1963 (1974).

"While it is true that a trial court must accept all well-pleaded facts of the non-moving party as true, and must also draw reasonable inferences from allegations, there is no duty to strain to find inferences favorable to the non-moving party." In re Adoption of Magofna, No. 90-012, 1 N.Mar. 172 (1990).

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Bluebook (online)
2 N. Mar. I. 482, 1992 N. Mar. I. LEXIS 7, Counsel Stack Legal Research, https://law.counselstack.com/opinion/govendo-ex-rel-govendo-v-marianas-public-land-corp-nmariana-1992.