Torres v. Marianas Public Land Corp.

3 N. Mar. I. 484, 1993 N. Mar. I. LEXIS 21
CourtSupreme Court of The Commonwealth of The Northern Mariana Islands
DecidedFebruary 18, 1993
DocketCIVIL ACTION NO. 91-1095
StatusPublished

This text of 3 N. Mar. I. 484 (Torres v. Marianas Public Land Corp.) is published on Counsel Stack Legal Research, covering Supreme Court of The Commonwealth of The Northern Mariana Islands primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Torres v. Marianas Public Land Corp., 3 N. Mar. I. 484, 1993 N. Mar. I. LEXIS 21 (N.M. 1993).

Opinion

OPINION

VILLAGOMEZ, Justice:

FACTUAL AND PROCEDURAL HISTORY

On August 2, 1991, the Marianas Public Land Corporation ("MPLC") leased to Nakamoto Enterprises, Ltd. ("Nakamoto") 22,950 square meters of beach-front, public land situated in the "Samoan [486]*486Housing" area in Garapan. Nakamoto leased the land to construct and operate, among other things, a first-class resort hotel of approximately 450 rooms.

Stanley T. Torres, a Commonwealth legislator and the plaintiff in this action ("plaintiff"), opposed the lease agreement and brought this action seeking, among other relief, to have the lease declared null and void.

Plaintiff's complaint set forth three causes of action. The first alleged that MPLC breached its strict standard of fiduciary care under Article XI, Section 4(c)1 of the Commonwealth Constitution by leasing such land to Nakamoto.

The second cause of action alleged that (a) the leased property exceeds five hectares, requiring approval of the lease by the legislature, which approval was not obtained, and (b) the lease failed to expressly prohibit the construction of permanent structures within 150 feet of the high water mark, as required by law.

The third cause of action alleged that the construction and operation of the hotel will result in adverse environmental impact and would violate plaintiff's right to a clean and healthful public [487]*487environment, guaranteed by Article I, Section 92 of the Commonwealth Constitution.

On December 20, 1991, MPLC moved to dismiss the complaint pursuant to Rule 12(b)(6), Com.R.Civ.P., for failure to state a claim upon which relief can be granted. On January 14, 1992, plaintiff filed a response to the motion, together with a motion for summary judgment. MPLC and Nakamoto each filed written opposition to plaintiff's motion for summary judgment.

MPLC's motion to dismiss was heard on January 22, 1992, and was denied'on February 3, 1992.3 The trial court "[found] that there [were] sufficient allegations to state a claim for which relief [could] be granted."4

On February 26, 1992, the trial court heard plaintiff's motion for summary judgment. On March 12, the court issued an order which, in part, stated: "The [c]ourt finds that there is no genuine issue of material fact in Plaintiff's First and Second Causes of Action and determines that those causes of action are [488]*488ripe for summary judgment." The court then dismissed the first and second causes of action, instead of granting or denying plaintiff's motion for summary judgment. It concluded, however, that "the third cause of action contains genuine issues of material facts," and asked the parties to brief the issue of whether it had jurisdiction over the third cause of action.

Nakamoto, "in order to more precisely present the issue to the court," filed a motion to dismiss the third causa of action pursuant to Rule 12(b)(1), Com.R.Civ.P. — lack of subject matter jurisdiction.

The trial court held a hearing on the third cause of action on April 2, 1992, and dismissed it by.written order on April 7, 1992, stating that"[t]he proper agency to address the issue is the [CRM]" and, until CRM has done so, the issue is not ripe for adjudication. In that order, the trial court indicated that it had previously dismissed the first, two causes of action under Rule 12(b) (6). The co.urt stated: "The [c]ourt has previously dismissed the first and second cause[s] of action of Plaintiff's Complaint on the basis that the two causes of action fail to state a claim."

The plaintiff timely appealed.

During the pendency of this appeal, MPLC terminated the lease agreement due to Nakamoto's alleged failure to perform certain conditions imposed by the lease. Nakamoto has since sued MPLC seeking a declaratory judgment that the purported termination of the lease agreement by MPLC was ineffective and that the lease is still valid. That action is still pending below.

[489]*489ISSUES PRESENTED

The two issues raised for our review are:

1. Whether the trial court erred in dismissing the first cause of action pursuant to Rule 12(b)(6).5

2. Whether the trial court lacks jurisdiction over the third cause of action.

ANALYSIS

A. The dismissal of the first causa of action under Rule 12(b)(6).

The trial court initially heard and denied MPLC's motion to dismiss the complaint pursuant to Rule 12(b)(6). In denying the motion, it found that there were sufficient allegations to state a claim upon which relief could be granted. In its subsequent ruling on plaintiff's motion for summary judgment, the court dismissed plaintiff's first and second causes of action pursuant to Rule 12(b)(6), although there was no Rule 12(b)(6) motion before it. Thereafter, it also dismissed the third cause of action for lack of jurisdiction, stating in its order that its earlier dismissal of the first and second causes of action was for failure to state' a claim. That had to be pursuant to Rule 12(b)(6).

Rule 12(b)(6) permits the filing of a motion to dismiss the complaint, before the filing of a responsive pleading (e.g., an answer to the complaint), for failure to state a claim upon which relief can be granted.

The present case is quite similar, in terms of the allegations [490]*490made and the issues raised, as those presented in Govendo v. MPLC & AIBIC, No. 90-036 (N.M.I. Feb. 11, 1992). Indeed, a comparison of the complaint in Govendo with the complaint in this case shows that the complaint appears to be patterned after the Govendo complaint, but with several significant differences. The differences consist of additional allegations made in the complaint in this case which were not made in the Govendo complaint. Those allegations are contained in paragraphs 8(d) and (e) of the complaint in this case.6

In Govendo, there was no allegation regarding appraisal of the land or any public expression of intent to use the land for a particular purpose. We found that the allegations in Govendo did not adequately state a claim upon which relief could be granted. Absent any allegation that the lease would adversely affect an expressed public interest, we determined that MPLC, as trustee, has no affirmative duty to inquire further before granting the lease.

In the instant case, however, it is alleged that the Sixth and Seventh Legislature, together with the Saipan Legislative Delegation, have expressed by formal resolution, the public's wishes to designate the Samoan Housing area for a public park. [491]*491This allegation is significant because MPLC, as trustee, has an affirmative duty to consider whether an expression has merit or not. Here, it chose not to give any consideration to such expression. We are not saying that MLPC must follow whatever public expression is made by the people who own the land — the beneficiary. Rather, MPLC, as a fiduciary, must consider legitimate public expressions made with respect to public land disposition before it takes final action thereon.

Plaintiff further alleged that MPLC could have negotiated better terms than the lease terms executed with Nakamoto.

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3 N. Mar. I. 484, 1993 N. Mar. I. LEXIS 21, Counsel Stack Legal Research, https://law.counselstack.com/opinion/torres-v-marianas-public-land-corp-nmariana-1993.