Hee K. Cho and Min S. Cho v. Alupang Beach Club, Inc. and Steven Kasperbauer

2025 Guam 3
CourtSupreme Court of Guam
DecidedSeptember 4, 2025
DocketCVA24-003
StatusPublished

This text of 2025 Guam 3 (Hee K. Cho and Min S. Cho v. Alupang Beach Club, Inc. and Steven Kasperbauer) is published on Counsel Stack Legal Research, covering Supreme Court of Guam primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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Hee K. Cho and Min S. Cho v. Alupang Beach Club, Inc. and Steven Kasperbauer, 2025 Guam 3 (guam 2025).

Opinion

IN THE SUPREME COURT OF GUAM

HEE K. CHO and MIN S. CHO, Plaintiffs-Appellants,

v.

ALUPANG BEACH CLUB, INC. and STEVEN KASPERBAUER, Defendants-Appellees.

Supreme Court Case No. CVA24-003 Superior Court Case No. CV1059-17

OPINION

Appeal from the Superior Court of Guam Argued and submitted on August 23, 2024 Hagåtña, Guam

Appearing for Plaintiffs-Appellants: Appearing for Defendants-Appellees: Daniel J. Berman, Esq. R. Todd Thompson, Esq. Berman Law Firm Thompson Thompson & Alcantara, P.C. Bank of Guam Bldg. 238 Archbishop Flores St., Ste. 801 111 Chalan Santo Papa, Ste. 503 Hagåtña, GU 96910 Hagåtña, GU 96910 Cho v. Alupang Beach Club, Inc., 2025 Guam 3, Opinion Page 2 of 31

BEFORE: ROBERT J. TORRES, Chief Justice; F. PHILIP CARBULLIDO, Associate Justice; KATHERINE A. MARAMAN, Associate Justice.

CARBULLIDO, J.:

[1] Plaintiffs-Appellants Hee K. Cho and Min S. Cho (collectively, the “Chos”) appeal the trial

court’s decision granting Defendants-Appellees Alupang Beach Club, Inc. and Steven

Kasperbauer’s (collectively, “ABC”) second motion for summary judgment. They also appeal the

denial of their motion to reconsider that decision. The Chos argue that the trial court did not

address all of their claims when it purported to dispose of the case on summary judgment. The

Chos also argue that the trial court erred when it denied their motion for reconsideration after

finding that the Chos abandoned their claims by failing to assert them in opposition to ABC’s

second motion for summary judgment.

[2] This dispute centers on the interpretation of a 2004 Settlement Agreement and Mutual

Release (the “Settlement Agreement” or “SAMR”), which intended to resolve various claims about

the Alupang Beach Tower (the “Tower” or “ABT”). The Chos own a controlling interest in the

Tower, while ABC leases one of its three commercial units. Under the Settlement Agreement,

ABC agreed not to challenge certain business decisions related to the Tower’s governance and

operations, including a 2004 Replacement Declaration of Horizontal Property Regime (the

“Replacement HPR”), which was required to bring the property into compliance with Guam law.

[3] In 2016, ABC formally objected to a proposed First Amendment to the Replacement HPR

(the “Proposed Amendment”) that the Chos submitted to the Guam Land Use Commission (the

“Land Use Commission” or “GLUC”). In response, the Chos sued ABC in the Superior Court for

breach of contract, seeking injunctive relief or, in the alternative, seeking economic damages for

breach of contract, breach of the covenant of good faith and fair dealing, and unjust enrichment. Cho v. Alupang Beach Club, Inc., 2025 Guam 3, Opinion Page 3 of 31

The trial court granted summary judgment for ABC, finding the Chos lacked standing to pursue

their claims. The court later denied the Chos’ motion for reconsideration. These decisions

misapplied the traditional standing doctrine and did not address the substantive issues raised by

the parties in their motions for summary judgment. We reverse.

I. FACTUAL AND PROCEDURAL HISTORY

[4] In 2003, the Chos contracted to buy a majority of the units at the Tower from Hibari Guam

Corporation (“Hibari” or “Hibari Guam”). As part of the sale, Hibari agreed to file a Replacement

HPR with the Land Use Commission to bring the Tower into compliance with the Guam

Horizontal Property Regime Act. ABC objected to the bulk transfer of Hibari’s interest in the

Tower to the Chos as well as certain actions Hibari took in connection with the proposed

Replacement HPR before the Land Use Commission approved it. Alupang Beach Club, Inc., v.

Hibari Guam Corp., CV1983-03 (First Am. Compl. at 11 (May 26, 2004)).1 ABC submitted a

letter of objection to the Land Use Commission regarding the Replacement HPR and sued Hibari

and the Chos, among others, asserting various claims related to the Tower. The parties—including

ABC, Hibari, and the Chos—ultimately settled, formalized in the 2004 Settlement Agreement.

Under the Settlement Agreement, ABC withdrew its objections to the Replacement HPR, which

the Land Use Commission subsequently approved.

[5] In exchange for the release of ABC’s claims and as contemplated in the 2003 Purchase and

Sale Agreement between Hibari and Hee K. Cho (the “Purchase Agreement”), Hibari paid ABC a

settlement amount of $475,000, excluding attorney’s fees. Record on Appeal (“RA”), tab 1

1 “Although outside the record of this appeal, we can properly take judicial notice” of documents filed in ABC’s earlier lawsuit against Hibari. See People v. Tedtaotao, 2023 Guam 21 ¶ 2 n.1 (citing People v. Chung, 2004 Guam 2 ¶ 14). “In our discretion, and without request, we take judicial notice of this and certain other court records under Guam Rule of Evidence 201(b)(2)-(c), as they are ‘capable of accurate and ready determination by resort to sources whose accuracy cannot reasonably be questioned.’” Id. (citation omitted). We take judicial notice of documents filed in ABC’s lawsuit “not for the truth of the matters asserted,” but to establish “the fact of their existence.” See id. ¶ 4 n.2 (citations omitted). Cho v. Alupang Beach Club, Inc., 2025 Guam 3, Opinion Page 4 of 31

(Compl., Oct. 9, 2017), Ex. 1 at 5 ¶ 2.1 (Settlement Agreement, Oct. 1, 2004)); see also RA, tab

75 (Hee K. Cho’s 2nd Decl., Apr. 12, 2022), Ex. A at 8 ¶ 4.11(c) (Purchase Agreement, Oct. 8,

2003) (“Alupang Beach Club has alleged that Seller was negligent . . . . The Seller assumes all

liability in connection with these claims.”). Besides withdrawing all objections to the Replacement

HPR, ABC agreed to “sign a new Replacement HPR or amendment to the HPR [if requested by

Hibari or the Chos], so long as such document is similar in material respects to the Replacement

HPR previously submitted to the GLUC.” RA, tab 1 (Compl.), Ex. 1 at 6 ¶ 3.1 (Settlement

Agreement); see also id. at 12 ¶ 5.4 (“To the extent any further action is necessary to give full legal

force and effect to the Replacement HPR . . . ABC warrants and agrees not to oppose or contest

such action . . . .”). ABC agreed (1) to “not object to or assert any claims relating to the type of

business operations” at the Tower, id. at 8 ¶ 3.10, (2) to not oppose any application for conditional

use permits, zoning variances, or regulatory permits, id. at 7 ¶ 3.8, (3) to acknowledge that the

Tower is a mixed-use condominium, including commercial, residential, and hotel spaces, id. at 8

¶ 3.12, and (4) to recognize that market or economic conditions might require modifications to the

Tower facilities, see id. The Settlement Agreement also states that “[i]n the event that ABC

breaches the terms of paragraphs 3.1, 3.2, 3.3, 3.6, 3.7, 3.8, 3.10, 3.11 or 3.12, then Hibari Guam

shall have the right to a refund for any amounts paid under this Settlement [Agreement].” Id. at 7

¶ 3.9.

[6] In 2016, the Chos, on behalf of the Tower Owners Association, submitted the Proposed

Amendment to the Land Use Commission, seeking to change the ratio of hotel to residential units

at the Tower. In response, ABC filed several written objections to the Proposed Amendment with

the Land Use Commission. “Because of ABC’s failure to abide by its obligations, and honor their

promises made in the SAMR,” the Chos claimed they “received nothing in exchange” for the Cho v. Alupang Beach Club, Inc., 2025 Guam 3, Opinion Page 5 of 31

settlement paid to ABC under the Settlement Agreement and sent a written demand to ABC to

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