The Supreme Court of Guam has affirmed a lower court ruling in favor of the Port Authority of Guam in a legal dispute with Guam Industrial Services, Inc., also known as Guam Shipyard, over possession of port properties.
In a unanimous opinion authored by Justice Robert J. Torres and joined by Chief Justice Katherine A. Maraman and Justice F. Philip Carbullido, the high court upheld the Superior Court’s judgment in an unlawful detainer case involving the Hotel Wharf and the old Dong Yang site.
Guam Shipyard had appealed the ruling, challenging several aspects of the case, including the denial of its motion to dismiss, the use of expedited unlawful detainer procedures, and claims related to alleged rent overpayments.
The Supreme Court found that the Port Authority’s complaint sufficiently established a claim for unlawful detainer, citing the shipyard’s continued occupancy after its tenancy had been terminated. The court also ruled that the Port Authority’s initial inclusion of a claim for unpaid rent did not invalidate the case, as that claim was later withdrawn.
Addressing the issue of rent overpayments, the court determined that such payments did not extend the tenancy. It clarified that under Guam law, any renewal of a month-to-month tenancy is limited and only applies when rent is accepted after a lease has expired—conditions not met in this case.
The court further held that unlawful detainer procedures could apply to the Dong Yang site even though the shipyard’s use of the property was based on a revocable license rather than a formal lease.
While the court acknowledged a procedural error by the trial court in not allowing Guam Shipyard to file an answer after its motion to dismiss was denied, it concluded the mistake did not affect the outcome and did not warrant reversal.
The Supreme Court ultimately affirmed the judgment in full, maintaining the Port Authority’s right to possession of the disputed properties.