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
Supreme Court of Guam·Decided July 6, 2022·No. CVA20-008·Published·Cited by 1 cases

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

Cite as: 2022 Guam 5

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

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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.

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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

[6] “We review both questions of standing and statutory interpretation de novo.” In re A.B. Won Pat, 2019 Guam 6 ¶ 14 (citing Ada v. Guam Tel. Auth., 1999 Guam 10 ¶ 10; Benavente v. Taitano, 2006 Guam 15 ¶ 10.). “A trial court’s decision to grant a motion to dismiss for lack of subject matter jurisdiction is also reviewed de novo.” Linsangan v. Gov’t of Guam, 2020 Guam 27 ¶ 11, cert. denied, 141 S. Ct. 2672 (2021).

IV. ANALYSIS

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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).

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