DFS Group is pursuing its long-running case against Guam International Airport Authority (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 obtained from DFS’ legal representatives, Gibson, Dunn & Crutcher LLP on the Pacific island.

 

The law firm says that ‘the best illustration of GIAA’s approach, which is not designed to uncover the truth is GIAA’s wrongful seizure of more than $1.8m of DFS’ funds, which were secured by a letter of credit’.

 

DFS’ law firm adds that its client believes in ‘integrity, fairness and an adherence to the rule of law’ and is sticking to its position that it is of ‘paramount importance’ that the Government of Guam and its agencies should abide by these principles, without exception and ‘regardless of who stands to benefit when these principles are cast aside or ignored’.

 

DFS ALLEGES THAT LOTTE BROKE THE RULES

In its statement relating to the long running case (following Lotte’s disputed takeover of the airport duty free concession in 2013) DFS also claims that Lotte Guam ‘was allowed to change what should have been its sealed bid after the deadline’, so allegedly breaking RFP rules.

 

The statement from DFS through its legal representative reads as follows: “The current Concession Contract at the Airport was obtained by Lotte through violations of the RFP rules and Guam law governing the award of concession contracts.

 

 

“Among other things, GIAA permitted Lotte to change its bid by allowing it to raise its financial offer after the deadline for bid responses had expired and after the sealed bids of other proposers were submitted.

 

“This is important for two critical reasons. First, that Lotte was allowed to change what should have been its sealed bid after the deadline violates the RFP rules and Guam law. Second, Lotte’s changed financial offer happened to be just slightly higher than the superior offer submitted in DFS’s sealed bid.”

 

DFS SAYS LOTTE DID NOT NEED TO PAY…

DFS added: “Businesses that invest in Guam must have confidence that the rule of law is fairly applied and that the companies doing business in Guam will be protected from unfair treatment.

 

“The problem with Lotte’s payment of GIAA’s attorneys’ fees to Calvo Fisher & Jacobs is simple. First, the Concession Contract does not require it”. DFS adds that the provisions of the Concession Contract state: “The Concession Contract therefore clearly provides that if GIAA retains attorneys to protect its interest in any matter arising under this Agreement, and GIAA prevails, then the Authority should be entitled to recover from Lotte its reasonable attorneys’ fees.

 

 

“The reason that payment of attorneys’ fees before the action is over is wrong is because the actual Concession Contract requirement is clear – doing so will ensure that the dispute will be resolved quickly and efficiently. Instead, GIAA’s outside counsel have done everything possible to drag out this litigation in order to line their pockets as much as possible and in the hopes that DFS will simply go away.”

 

DFS adds that ‘the best illustration of GIAA’s approach, which is not designed to uncover the truth, is GIAA’s wrongful seizure of more than $1.8m of DFS’ funds’, which it says were secured by a letter of credit.

 

ARBITRATION…

The company said: “DFS sought the return of its money through arbitration – pursuant to the express terms of DFS’ contract with GIAA – such that Calvo Fisher and Jacob could not delay a merits determination, as the law firm has been able to do in the Guam courts.

 

“The arbitration panel expressly rejected GIAA’s frivolous defences and GIAA promptly was ordered to pay the full amount it wrongfully seized, plus all of DFS’s legal fees and costs and the arbitration fees and costs in their entirety.

 

 

“Even now, GIAA has filed a baseless lawsuit, resulting in further waste of GIAA’s resources, in a vain attempt to escape its obligation to pay what the arbitrators determined GIAA owed to DFS.

 

“DFS remains steadfast in its commitment to honesty in government and will do its part to stand up to these illegal acts.”

 

FURTHER INFORMATION:

Lotte Guam took over the 10-year duty free contract at Guam International Airport in July 2013. For more information on the background to this story, select the word Guam in the search box, or click here: http://www.trbusiness.com/regional-news/asia-pacific/dfs-hands-over-to-lotte-duty-free/57503

 

For more information on the position currently being taken by Guam International Airport Authority (GIAA) and its Executive Manager Chuck Ada, click here: http://www.trbusiness.com/regional-news/asia-pacific/giaa-appeals-to-attorney-general-in-dfs-case/107637