Pacific Data Systems, Inc. v. Guam Department of Education, Teleguam Holdings LLC dba GTA, Defendant-Intervenor-Appellant

2024 Guam 4
CourtSupreme Court of Guam
DecidedSeptember 23, 2024
DocketCVA22-017
StatusPublished
Cited by1 cases

This text of 2024 Guam 4 (Pacific Data Systems, Inc. v. Guam Department of Education, Teleguam Holdings LLC dba GTA, Defendant-Intervenor-Appellant) 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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Pacific Data Systems, Inc. v. Guam Department of Education, Teleguam Holdings LLC dba GTA, Defendant-Intervenor-Appellant, 2024 Guam 4 (guam 2024).

Opinion

IN THE SUPREME COURT OF GUAM

PACIFIC DATA SYSTEMS, INC., Plaintiff-Appellee,

v.

GUAM DEPARTMENT OF EDUCATION, Defendant-Appellee,

TELEGUAM HOLDINGS, LLC dba GTA, Defendant-Intervenor-Appellant.

Supreme Court Case No. CVA22-017 Superior Court Case No. CV0760-21

OPINION

Appeal from the Superior Court of Guam Argued and submitted on December 12, 2023 Hagåtña, Guam

Appearing for Defendant-Intervenor-Appellant: Appearing for Plaintiff-Appellee: Anita P. Arriola, Esq. Joshua D. Walsh, Esq. William B. Brennan, Esq. (argued) Razzano Walsh & Torres, P.C. Arriola Law Firm 139 Murray Blvd., Ste. 100 259 Martyr St., Ste. 201 Hagåtña, GU 96910 Hagåtña, GU 96910 Appearing for Defendant-Appellee: James L.G. Stake, Esq. Guam Department of Education 501 Mariner Ave. Tiyan, GU 96913 Pac. Data Sys., Inc. v. Guam Dep’t of Educ., 2024 Guam 4, Opinion Page 2 of 15

BEFORE: F. PHILIP CARBULLIDO, Presiding Justice; KATHERINE A. MARAMAN, Associate Justice; and JOHN A. MANGLONA, Justice Pro Tempore.

CARBULLIDO, P.J.:

[1] Teleguam Holdings, LLC dba GTA (“GTA”) appeals the Superior Court’s Decision and

Order granting Pacific Data Systems, Inc.’s (“PDS”) motion for a preliminary injunction enjoining

the Guam Department of Education (“GDOE”) from taking further action on procurement awards

issued to GTA. After PDS lost a competitive bid to provide GDOE with phone and data services,

it filed protests with GDOE, which the agency denied. PDS appealed to the Office of Public

Accountability (“OPA”), which ultimately dismissed the case for lack of subject matter

jurisdiction. Rather than seeking judicial review of this decision, PDS filed a complaint in the

Superior Court against GDOE for injunctive and declaratory relief. GTA intervened in the case

shortly thereafter.

[2] Because PDS did not seek judicial review of the OPA’s dismissal of its protest claims, the

Superior Court lacked subject matter jurisdiction over any action seeking equitable relief under the

Procurement Code. We reverse, vacate the preliminary injunction, and dismiss PDS’s complaint.1

I. JURISDICTION

[3] This court has jurisdiction over appeals from the grant of an injunction under 7 GCA §

25102(f) (2005) and 7 GCA §§ 3107(a) and 3108(b) (2005). See Sule v. Guam Bd. of Exam’rs for

Dentistry, 2011 Guam 5 ¶ 7.

II. FACTUAL AND PROCEDURAL BACKGROUND

[4] GDOE issued two Invitations for Bids (“IFBs”) to procure telecommunications services.

At the time of the procurement, PDS was the “incumbent service provider for the services being

1 This opinion supersedes this court’s December 15, 2023, expedited Order vacating the preliminary injunction. Order (Dec. 15, 2023). Pac. Data Sys., Inc. v. Guam Dep’t of Educ., 2024 Guam 4, Opinion Page 3 of 15

procured in the IFBs,” and GTA was a competing bidder. Record on Appeal (“RA”), tab 1 at 5

(V. Compl., Oct. 28, 2021).

[5] PDS protested each IFB shortly after GTA was announced as the winning bidder for both

IFBs. The protests for both IFBs allege: (1) that GTA could not perform on the service delivery

date specified by GDOE, (2) that GTA’s bids do not conform with the General Exchange Tariff

(“the Tariff”) in violation of the Guam Telecommunications Act, and (3) that GTA’s pricing as

presented in its bids may include illegal surcharges “above the price of goods and services

represented to consumers.” RA, tab 22 (Opp’n Mot. TRO & Prelim. Inj., Dec. 15, 2021), Attach.

3 (Protest Letters, June 9-10, 2021).

[6] GDOE denied both protests, and PDS timely appealed to the Office of Public

Accountability (OPA). RA, tab 22, Attach. 5 (Procurement Appeals, July 14, 2021). At the OPA

level, GDOE moved to dismiss the tariff-related claims due to a lack of subject matter jurisdiction.

See RA, tab 22, Attach. 7 at 1 (OPA Order of Dismissal, Oct. 5, 2021). Simultaneously, PDS

moved to seek enforcement of the automatic stay. RA, tab 22, Attach. 6 (Mot. Inj. Relief & Stay,

Aug. 31, 2021).

[7] After a formal hearing, the OPA granted GDOE’s motion to dismiss for lack of subject

matter jurisdiction “without prejudice” and instructed PDS to go before the Guam Public Utilities

Commission (GPUC)—the agency responsible for enforcing the Tariff—then re-file its appeal

with the OPA thereafter. RA, tab 22, Attach. 7 at 2 (OPA Order of Dismissal). Although the OPA

did not reach the merits of PDS’s motion to enforce the automatic stay, its decision granting GTA’s

motion to dismiss was memorialized in a written order:

During the formal hearing, the Public Auditor granted [GDOE’s] Motion to Dismiss for lack of Subject Matter Jurisdiction filed on August 31, 2021. However, PDS was instructed to file a petition or complaint regarding the issue of [GTA’s] bid prices violating the Telecommunication Act with [GPUC] to decide on that Pac. Data Sys., Inc. v. Guam Dep’t of Educ., 2024 Guam 4, Opinion Page 4 of 15

issue first, as they are the proper forum, and then they may re-file an appeal with the [OPA] as these consolidated appeals will be Dismissed Without Prejudice.

Id. at 1-2 (emphases added).

[8] Twenty-three days after the OPA’s dismissal for lack of subject matter jurisdiction,2 PDS

filed a complaint for injunctive relief and declaratory judgment in the Superior Court. The

complaint cited efforts by GDOE to formalize contracts with GTA in apparent violation of the

automatic stay.3 However, the complaint did not seek review of the OPA’s dismissal of the protest

claims for lack of subject matter jurisdiction or the failure to address the motion seeking

enforcement of the automatic stay.

[9] Finding that GDOE’s actions posed irreparable harm to PDS, the Superior Court entered a

Temporary Restraining Order against GDOE and ordered the agency to appear for a show cause

hearing, which a representative from GTA also attended. GTA filed an application to intervene,

which the Superior Court granted because it found GTA had a significantly protectable interest

that GDOE did not sufficiently protect.

[10] GTA argued that PDS’s failure to seek judicial review of the OPA’s Order dismissing the

appeal from GDOE within the 14 days required by statute foreclosed entitlement to the automatic

stay.4 RA, tab 34 at 4 (Opp’n Pl.’s Mot. Prelim. Inj., Apr. 27, 2022) (“PDS failed to timely appeal

2 It is undisputed that PDS did not pursue the Telecommunications Act claims by filing “a petition or

complaint” with the GPUC in accordance with OPA’s instructions prior to filing for injunctive relief—or at any time thereafter. See RA, tab 22, Attach. 7 at 1-2 (OPA Order of Dismissal, Oct. 5, 2021); Appellee PDS’s Br. at 11-12 (Nov. 3, 2023). During the hearing for the preliminary injunction, when asked about whether any action was taken with GPUC, GTA’s counsel stated, “[T]here is no formal filing that I’m aware of, but there has been correspondence back and forth between my client and the GPUC, telling the GPUC about the tariff issues. What the GPUC is doing, I do not know. No one’s brought anybody here.” Transcript (“Tr.”) at 39 (Mot. Hr’g, Aug. 2, 2022). 3 While the protest was still before the OPA, on September 7, 2021, GDOE allegedly transmitted to GTA

fully executed contracts for both IFBs with a congratulatory letter stating services shall commence no earlier than October 1, 2021. RA, tab 34 at 2 (Opp’n Pl.’s Mot. Prelim. Inj., Apr. 27, 2022). PDS refused to transition the services to GTA. Id. 4 GTA also claims the automatic stay was not available because the protest was filed post -award.

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