DFS bets on the Superior Court in Guam case

By Doug Newhouse |

Top Guam Antonio Won Pat AirportDFS Guam’s Lead Trial Counsel Maurice Suh told TRBusiness recently that ’multinational corporations and the worldwide tourist and duty free industry’ are closely monitoring DFS’ long-running legal dispute with Lotte Duty Free and the Guam International Airport Autority (GIAA).

Lotte Duty Free was awarded the 10-year duty free concession at Guam Antonio B. Won Pat International Airport three years ago (commenced July 2013), after offering $15.4m a year for the contract. This award effectively replaced DFS as the airport concessionaire after 40 consecutive years at the location.

Contacted by TRBusiness, Los Angeles-based Suh who represents Gibson, Dunn & Crutcher LLP recently agreed to answer some written questions with regard to the ongoing legal options left open to DFS Guam in this case.

Maurice Suh, Lead Trrial Counsel from Gibson, Dunn & Crutcher LLP, representing DFS Guam

Maurice Suh, Lead Trial Counsel from Gibson, Dunn & Crutcher LLP, representing DFS Guam.

GIAA WANTS ATTORNEY GENERAL

This comes against a background where Guam International Airport Authority has already called upon the Guam Attorney General to intervene, with Chuck Ada, Executive Manager of GIAA claiming ‘DFS has tried to overwhelm the GIAA with threats and litigation’.

[See link: http://www.trbusiness.com/regional-news/asia-pacific/giaa-appeals-to-attorney-general-in-dfs-case/107637].

TRBusiness asked DFS Guam’s Lead Trial Counsel Maurice Suh the following questions to which he replied in writing as below:

Q & A WITH MAURICE SUH BEGINS:

TRB: DFS senior management is obviously determined to see this case reach some form of conclusion. While compensation is clearly a major aim in this latest development, are there any further legal avenues left to protest the concession award itself?

Maurice Suh, Lead Trial Counsel for DFS Guam, Gibson, Dunn & Crutcher LLP: “We have explored numerous other legal avenues to protest the concession award and to contest the underlying conduct leading to its wrongful award to Lotte.

“At this moment, we are committed to pursuing the process through Guam Superior Court. We have faith that the courts in Guam will treat us fairly and that our current litigation will result in justice for DFS.”

TRB: What are the next legal steps you hope to take in this case and what do you hope the broad timescale will be for these?

Lotte Guam AirportMaurice Suh: “The next legal steps all involve discovery and obtaining the facts about what occurred. It is remarkable that the GIAA – a government agency – has spent so much time and effort and money trying to prevent basic facts from coming to light.”

TRB: There has been  a lot of talk of injustice with regard to to this award and the subsequent legal process. What lessons do you believe need to be learned in Guam in future with regard to legal process?

Maurice Suh: “We believe that multinational corporations and the worldwide tourist and duty free industry is carefully watching what is taking place in Guam. We think it is vitally important for all companies doing business in Guam to be treated fairly.”

TRB: What achievements are you most pleased with in regard to the case to date?

Maurice Suh: “Our ultimate achievement will be to prevail in this litigation, which is what we believe will occur when all the facts come to light.”

Q& A ENDS.

Top Charles 'Chuck' H. Ada II, Executive Manager, A.B Won Pat International Airport Authority, Guam

‘Chuck’ H. Ada II, Executive Manager, A.B Won Pat International Airport Authority, Guam.

GIAA CLAIMS DFS ‘DISTORTS THE FACTS’

Meanwhile – and as reported by TRBusiness – DFS says it is pursuing its long-running case against GIAA ‘to bring to the public eye the need for integrity, fairness and an adherence to the rule of law in Guam,’ – according to the latest statement from DFS’ legal representatives, Gibson, Dunn & Crutcher.

The law firm says that ‘the best illustration of GIAA’s approach is GIAA’s ‘wrongful seizure of more than $1.8m of DFS’ funds’.

But this is denied by GIAA’s Executive Manager Chuck Ada, who stated in his last communique: “Recent statements by DFS attorneys about legal fees relating to the specialty retail concession contract are yet another cynical attempt by DFS to distort the facts and cast a cloud over an agreement that continues to pay dividends for the people of Guam.”

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