Governor Lou Leon Guerrero announced that the District Court of Guam has dismissed the lawsuit filed by Attorney General Douglas Moylan against the Governor and the Guam Housing and Urban Renewal Authority.

The order issued on Wednesday by District Court Judge John Coughenour agreed with the Report and Recommendations of District Court Magistrate Judge Michael Bordallo which concluded that Moylan failed to establish the federal Court had "subject matter jurisdiction."

“Today’s decision is a decisive victory for the rule of law and for the people of Guam," Governor Lou Leon Guerrero said in a release the same day.

Adelup highlighted that the Governor stood firmly believing that this lawsuit did not belong in federal court.

"Today, the District Court agreed," Adelup said stressing that the legal dispute had "real consequences."

"By challenging the Governor’s authority to carry out her constitutional responsibilities, this litigation delayed progress on the Mangilao Medical Campus—our Administration’s transformational investment in Guam’s healthcare future—and prolonged uncertainty surrounding a project our island urgently needs," Adelup said.

The case went through months of litigation, now that the final order is issued, Adelup said they "respect the Court's careful analysis and appreciate its thoughtful application of the law."

The Governor's Office thanked their attorneys who represented the governor and GHURA describing their service as "exceptional professionalism and dedication."

Now that the federal Court has made a final decision Adelup says the path forward will move with "urgency."

"We will continue moving forward with urgency to build the Mangilao Medical Campus because the need for a world-class hospital did not pause while this lawsuit was pending. If anything, it became even more apparent,” the Gov. said.

Adelup reaffirmed the Administration's commitment to building the Mangilao Medical Complex, the new hospital and other critical infrastructure.

AG Moylan said he anticipated the "procedural decision" but said that "the Judge did not rule upon the merits."

"We have 30 days to appeal the decision to the Ninth Circuit Court of Appeals, which

action had been in the planning stages depending upon what basis the lower court ruled. The decision appears to simply adopt the recommendations by the lower magistrate Judge

Bordallo, which were on procedural legal grounds. We respectfully disagree and will exercise our right of appeal on behalf of our client to protect us from indebting our People for amounts the Guam Legislature did not appropriate," Moylan said arguing that the decision contains "legal errors."

"This includes the AG’s duty to protect the People’s right to have the Guam Legislature decide how much debt to incur in building a hospital or medical complex, consistent with the 9th Circuit’s earlier 1980 Bordallo v. Baldwin and other federal court decisions," he added.