Japan Bus Lines, LLC v. H.I.S. Guam, Inc.

Superior Court of Guam·Decided December 4, 2024·No. CV0514-20·Unknown

Opinion

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CLERK CLERt{ OF

OF COURT

COURT

IN THE SUPERIOR COURT

COURT OF

OF GUAM

GUAM

JAPAN BUS LINES, LLC, CIVIL CASE CASENO.

no. CV0514-20

Plaintiff,

DECISION AND ORDER

ORDER DENYING

vs. PLAINTIFF'S SECOND MOTION IN LIMINE AND DENYING DEFENDANT'S H.1.s. GUAM,INC., H.I.S. GUAM, mc., MOTION FOR LEAVE

Defendants.

INTRODUCTION

This matter came This came before before the Honorable John JohnC.

C.Terlaje

Terlaje on October 22, 2024, 2024,for

for aaMotion

Motion

Hearing Hearing on Japan BusLines, Japan Bus Lines,LLC's

LLC's Second Motion

Motion in

in Liming.

Limine. Attorney

Attorney Joseph

Joseph C. Razzano

Razzano

appeared for Japan appeared for JapanBus BusLines,

Lines,LLC

LLC and

and Attorney

Attorney Phillip Torres

Tories appeared

appeared for H.I.S. Guam, Guam, Inc.

on the relevant law and Based on and authorities authorities the

the court

court now

now issues

issuesthe

thefollowing decision and following decision and order

DENYING DENYINGPlaintiffs PlaintiffsSecond SecondMotion

Motionin

inLimine

Limine and

and DENYING Defendant's Motion for Leave

File for to File for Summary Summary Judgment.

Judgment.

I. 1. FACTUAL AND PROCEDURAL BACKGROUND BACK

On On March March 9, 2022, the court

2022, the court denied

denied Plaintiffs

Plaintiffs Motion

Motionfor

forSummary

SummaryJudgment

Judgment regarding

the the fnlstration frustration of purpose defense. Mot.

purpose defense. Mot. in

in Liming

Limine to

to Exclude

Exclude Frustration

Frustration of

ofPurpose

Purpose Def. -J 33

Def. 1]

(2024). (2024). Plaintiff moved moved for

for reconsideration, and, on August reconsideration, and, August 16, 16, 2022,

2022, the

the court

court denied

denied the

the

Plaintiffs PlaintiffsMotion Motionfor

forReconsideration.

Reconsideration. Id

Idatatii,i4.4.On

OnJanuary

January 3, 2024,

2024,Plaintiff

Plaintiff filed

filed a Motion

Motion in

cv0514-20 CV0514-20 DECISION AND ORDER DENYING PLAINTIFF'S SECOND SECOND MOTION IN Page 2 LIMINE AND DENYTNG DEFENDANT'S MOTION FOR LEAVE DENYING DEFENDANT'S

Limine, praying Liming, praying again again to

to exclude

exclude the

the frustration

frustration of

of purpose defense. Id.

purpose defense. 16, 2024, Id On May 16, 2024, the

court again denied this Motion. Dec. & Order Denying Denying Mot.

Mot. To

To Exclude

Exclude Frustration of Purpose Frustration of

Defense (May 16, 16, 2024).

2024). On September

September 27, 2024, Plaintiff filed Hled aa Second

Second Motion in Liming

Limine

requesting that requesting that the court prohibit the court prohibit Defendant Defendant H.I.S.

H.I.S. Guam

Guam from

from arguing

arguing that

that the COVID-19

the COWD-19

pandemic was the pandemic was the event event that

that frustrated

frustrated the contract purpose, purpose, rather

rather than

than governmental

governmental regulations

which came came as as a result of the

the pandemic.

pandemic. Plaintiffs SecondMot.

Plaintiffs Second Mot. in in Limine

Limine(Sept.

(Sept. 27,

27, 2024).

2024). H.I.S.

Guam filed its Opposition to this Motion on September September 30, 2024, and proceeded to file a Motion

Leave to File for Leave File Motion Motion for

for Summary

Summary Judgment on October October 14,

14, 2024. Amended Oppo.

Oppo. to

to

Plaintiffs PlaintiffsSecond Second Mot.

Mot. ininLiming

Limine(Oct.

(Oct.10,

I 0,2024),

2024); Defendant's

Defendant's Mot.

Mot. For

ForLeave

Leave (Oct.

(Oct. 17,

17, 2024).

Japan Bus Lines Japan Lines filed filed its Reply to H.I.S.

H.I.S. Guam's Amended Response Response on

on October

October 17,

17, 2024.

2024.

Plaintiffs Reply to Amended Plaintiff's Oppo. To Amended Oppo. To Second

Second Mot. In Limine

Mot. In Limine (October

(October 17,

17, 2024).

2024). The Parties

Parties

also discussed the Motion in Liming Limine at a Motion Hearing held on October October 22, 2024, at which which time

H.1.S. Guam brought

counsel for Defendant H.I.S. brought up two two cases

cases to

to support

support its

its position.

position. Plaintiff

Plaintiff then

responded to these cases cases by filing

filing aa Response with

with the

the court

court on

on October

October 29,

29, 2024. That same day,

Defendant prematurely prematurely filed

filed its

its Motion

Motion for

for Summary

Summary Judgment.

Judgment. This

This motion was opposed by

Plaintiff as as being

being premature

premature and

and was later

later withdrawn

withdrawn by Defendant. Therefore, Therefore, based on these

the outstanding

pleadings, the outstanding motions motions are

are 1)

1)Plaintiffs

Plaintiffs Second

Second Motion in

in Limine

Limine and 2)

2) Defendant's

Defendant's

Motion for Leave to File for Summary Judgment, both of which which have received responses from the

opposing party.

The rrelevant substantive eleva nt subst a nt ive facts fa ct s regarding

r ega r ding Plaintiffs

P la int iffs Second

S econd Motion

Mot ion m Limine aand

in Limine

Defendant's Motion Defendant's Motion for for Leave

Leave to

to File for Summary Judgment Judgment are as follows:

cv05I4-20 CV0514-20 DECISION AND ORDER DENYING PLAINTIFF'S SECOND SECOND MOTION IN Page 3 LIMINE AND DENYING DEFENDANT'S MOTION FOR LEAVE

Thecontract 1. The contract atat issue issue ininthis

thiscase

caserequired

requiredPlaintiff

Plaintiffprovide

providetransportation

transportation services

services to

Defendant in exchange for Defendant Defendant paying an amount amount to

to Plaintiff

Plaintiff each month. Mot. in

Limine to Exclude Frustration of Purpose Liming Purpose Def. ,i (2024) (citing Exhibit "A").

Def 1]4 "A").

Thecontract 2. The contractbegan beganon

onApril

AprilI,1,2013,

2013, and

andthrough

through subsequent

subsequent extensions,

extensions, was

was set

set to expire

2021. Id.

on March 31, 2021. Id citing Exhibit Exhibit "B."

3. 3. On OnMarch March14,

14,2020,

2020,the

thegovernor

governorofofGuam,

Guam,pursuant

pursuant to

to 10

10 GCA

GCA §§ 19401,

19401, declared

declared aa state

state

of emergency of emergency for Guam Guam as

as aa result

resultofofthe

theeffects

effectsofofCOVID-19

COVID-19arriving on Guam.

giving on Guam. E.O.

2.20-03.1 Pursuant to 2.20-03 Pursuant to 10 10 GCA

GCA §§ 19405(b), this declaration l 9405(b ), this declaration of of emergency

emergency was

was set

set to expire

to expire

13, 2020. Thereafter,

on April 13, Thereafter, on on March

March 20,

20, 2020,

2020, the governor of Guam closed all nonthe governor

essential essential businesses. Id. at ,i1]4, businesses. Id. 4, 5.

4. Defendant Defendantclaims claimsthat

that on

onor

or about

about March

March 19,

19, 2020, the Guam Visitor's Bureau ("GVB")

issued a memorandum clarifying clarifying the Governor's Governor's Executive

Executive Orders, of Orders, stating in item 13 of

the memo that tour buses buses were

were not

not allowed

allowed to

to operate.

operate.Amend.

Amend. Oppo.

Oppo. To

ToPlaintiffs

Plaintiffs Second

Mot. Mot. 111 Limine, pg.

In Limine, pg. 7.

5. On April8,8,2020, OnApril 2020, the the Department

Department of

ofPublic

Public Health

Health and

and Social

Social Sen/ices

Services (DPHSS)

(DPHSS) issued

issued

2020-05, which provided further DPHSS Memorandum 2020-05, E.0. 2020-05.

further guidance on E.O. 2020-05. The

Memo declared declared that

that private

private transportation

transportation providers

providers providing

providing transportation

transportation services

services

necessary necessary for essential essential activities

activities were

were essential

essential businesses.

businesses. Mot.

Mot. in

in Limine

Liming to Exclude

Frustration Frustration of of Purpose

Purpose De£

Def.1] 5.

,i 5.

6. On OnApril April13,

13,2020,

2020, Defendant

Defendant informed

informed Plaintiff

Plaintiff that

that it was not willing to pay pay the

the full

full

amounts due under under the contract

contract despite, as Plaintiff claims, being ready, willing, and able

to provide transportation services.

services. [al

Id

CV0514-20 DECISION AND ORDER DENYING DENY[NG PLAINTIFF'S SECOND SECOND MOTION IN Page4 Page

LIMINE AND DENYING DEFENDANT'S MOTION MOTION FOR LEAVE

OnMay 7. On May5,5,2020, 2020,Plaintiff

Plaintiffsent

sent aa letter

letter to Defendant

Defendant declaring Defendant Defendant in

in default of

of the

contract for failure failure to

to pay

pay the

the amounts

amounts due

due and

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Japan Bus Lines, LLC v. H.I.S. Guam, Inc., (superctguam 2024).

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