Joaquin V. Leon-Guerrero, Individually and as a Taxpayer v. Government of Guam, Guam Department of Administration, and Edward Birn, in his capacity as its Director

2022 Guam 5
CourtSupreme Court of Guam
DecidedJuly 6, 2022
DocketCVA20-008
StatusPublished
Cited by1 cases

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Joaquin V. Leon-Guerrero, Individually and as a Taxpayer v. Government of Guam, Guam Department of Administration, and Edward Birn, in his capacity as its Director, 2022 Guam 5 (guam 2022).

Opinion

IN THE SUPREME COURT OF GUAM

JOAQUIN V. LEON-GUERRERO, Individually and as a Taxpayer, Plaintiff-Appellant,

v.

GOVERNMENT OF GUAM, GUAM DEPARTMENT OF ADMINISTRATION, and EDWARD BIRN, in his capacity as its Director, Defendants-Appellees.

Supreme Court Case No.: CVA20-008 Superior Court Case No.: CV1019-19

OPINION

Appeal from the Superior Court of Guam Argued and submitted on July 1, 2021 Via Zoom video conference

Appearing for Plaintiff-Appellant: Appearing for Defendants-Appellees: Braddock J. Huesman, Esq. Jordan Lawrence Pauluhn, Esq. Deborah E. Fisher, Esq. Assistant Attorney General Fisher Huesman P.C. Office of the Attorney General Core Pacific Bldg. Litigation Division 545 Chalan San Antonio, Ste. 302 590 S. Marine Corps Dr., Ste. 802 Tamuning, GU 96913 Tamuning, GU 96913 Leon-Guerrero v. Gov’t of Guam, 2022 Guam 5, Opinion Page 2 of 14

BEFORE: ROBERT J. TORRES, Presiding Justice; KATHERINE A. MARAMAN, Associate Justice; and JOHN A. MANGLONA, Justice Pro Tempore.

TORRES, J.:

[1] Plaintiff-Appellant Joaquin V. Leon-Guerrero appeals the Superior Court of Guam’s

dismissal and denial of his complaint challenging the legality of actions taken by Defendants-

Appellees Government of Guam, Department of Administration, and Edward Birn, in his official

capacity as its Director, in issuing a request for proposal for group health and dental insurance for

the Government’s employees (the “Proposal”) that included the new requirements mandated by

Guam Public Law (“P.L.”) 35-002. Leon-Guerrero filed his Verified Complaint for Injunctive and

Declaratory Relief (“Complaint”) under the Enforcement of Proper Government Spending Act

(“Taxpayer Statute”) (codified at 5 GCA § 7101 et seq. (2005)), alleging that P.L. 35-002 was an

illegal delegation of Guam’s sovereign power which caused an illegal expenditure by the

Government. The Taxpayer Statute allows an individual taxpayer to enjoin illegal government

spending and obtain a personal judgment. In his Complaint, Leon-Guerrero sought a preliminary

injunction to stop the Proposal from being awarded until the Superior Court ruled on the organicity

of P.L. 35-002. In a decision and order later reduced to a judgment, the Superior Court granted

the Government’s motion to dismiss Leon-Guerrero’s Complaint, holding that Leon-Guerrero

lacked standing to bring the action due to his lack of concrete injury. For the reasons below, we

affirm the judgment of the trial court, but on different grounds.

I. FACTUAL AND PROCEDURAL BACKGROUND

[2] In March 2019, P.L. 35-002 was signed into law. Guam Pub. L. 35-002 (Mar. 7, 2019)

(codified at 4 GCA § 4302(c)(12)). Public Law 35-002 amended the required qualifications of

those health insurance providers who sought to bid on the Government’s request for proposals to Leon-Guerrero v. Gov’t of Guam, 2022 Guam 5, Opinion Page 3 of 14

provide group health insurance to Government of Guam employees. Specifically, P.L. 35-002

restricted consideration and acceptance to only those proposals by providers whose in-network

coverage included all private and public hospitals operating in Guam. See id. Previously, there

had been no such requirement. The new restrictions were to go into effect beginning with

negotiations for the fiscal year of 2020. Id. In April 2019, the Department of Administration

issued a request seeking proposals for group health and dental insurance for Government of Guam

employees.

[3] In August 2019, Joaquin V. Leon-Guerrero filed his Complaint in the Superior Court of

Guam, challenging the organicity of P.L. 35-002. To claim the threshold jurisdictional issue of

standing, Leon-Guerrero relied on, inter alia, the Taxpayer Statute. See Guam Mem’l Hosp. Auth.

v. Superior Court, 2012 Guam 17 ¶ 8; Taitano v. Lujan, 2005 Guam 26 ¶ 15 (“If a party does not

have standing to bring a claim, a court has no subject matter jurisdiction to hear the claim.”). In

the Complaint, Leon-Guerrero asserted that P.L. 35-002 allowed Guam Regional Medical City

(“GRMC”), Guam’s private hospital, to gain an unfair advantage in negotiations with insurance

providers who had to contract with GRMC for coverage to meet the requirements to bid on the

Proposal. Leon-Guerrero alleged two causes of action. For his first cause of action, Leon-Guerrero

alleged that the Guam Legislature had illegally delegated its own regulatory powers to procure

health insurance for the employees of the Government of Guam, and this act would “drive up the

cost of healthcare services to the Government, and Guam taxpayers.” Record on Appeal (“RA”),

tab 1 at 14-15 (V. Compl. Inj. & Decl. Relief, Aug. 20, 2019). Further, Leon-Guerrero claimed

that an illegal expenditure would occur if P.L. 35-002 was not voided. Leon-Guerrero therefore

sought a “judicial determination and declaration” that P.L. 35-002 was inorganic and void as well

as an injunction halting administration of the Proposal until P.L. 35-002 was “clarified to provide Leon-Guerrero v. Gov’t of Guam, 2022 Guam 5, Opinion Page 4 of 14

a fair bidding process.” Id. at 16. In his second cause of action, Leon-Guerrero alleged that P.L.

35-002 allowed GRMC to engage in anticompetitive conduct which would increase the costs of a

winning bid under the Proposal and also “lead to an improper expenditure of government funds.”

Id. at 17. For this cause of action, Leon-Guerrero also sought a judicial determination and

declaration that P.L. 35-002 was inorganic and void, and an injunction of the administration of the

Proposal.

[4] Relying on Article III of the United States Constitution and this court’s precedent requiring

constitutional standing, the trial court required Leon-Guerrero to demonstrate he suffered a

concrete “injury in fact.” RA, tab 31 at 3-6 (Dec. & Order, Mar. 4, 2020). Further, the trial court

recognized that although “statutory standing” can exist where the legislature elevates an abstract

injury to qualify as concrete, the “‘legislature’s role in identifying and elevating intangible harms’”

by statute does not automatically grant the plaintiff sufficient standing. Id. at 3-4 (quoting In re

A.B. Won Pat Int’l Airport Auth., 2019 Guam 6 ¶ 20). In other words, Leon-Guerrero’s position

as a taxpayer alone was not sufficient to grant him constitutional standing described in In re A.B.

Won Pat International Airport Authority, 2019 Guam 6, required for all causes of action. Id. at 6.

The trial court determined that Leon-Guerrero had not established that he suffered a concrete injury

by the passing or implementation of P.L. 35-002 and dismissed his action for lack of constitutional

standing. Id. at 6-7. Leon-Guerrero timely appealed. Following oral arguments, this court ordered

supplemental briefing regarding the minimal standing requirement.1

//

1 Ultimately, this court need not decide whether its jurisdiction under 7 GCA § 3107(a) is a source of the minimum standing requirement as outlined in In re A.B. Won Pat International Airport Authority, 2019 Guam 6, and briefed by the parties, because Leon-Guerrero’s causes of action were inappropriate. Leon-Guerrero v. Gov’t of Guam, 2022 Guam 5, Opinion Page 5 of 14

II. JURISDICTION

[5] This court has jurisdiction over an appeal from a final judgment of the Superior Court. 48

U.S.C.A. § 1424-1(a)(2) (Westlaw through Pub. L. 117-159 (2022)); 7 GCA §§ 3107, 3108(a)

(2005).

III. STANDARD OF REVIEW

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