DFS and the airport have been locked in a legal battle over the airport's 2013 contract award to Lotte, a contract DFS alone had held for 40 years. In a 37-page decision, the Judge granted a DFS motion for summary judgement, which effectively precludes what was previously scheduled to be a lengthy bench trial. Barcinas agreed with DFS that the airport violated multiple provisions of Guam procurement law. In his ruling, the Judge found that the contract procurement was improperly administered. He found that GIAA failed to maintain a complete record of the procurement, and failed to properly certify it. He also faulted the airport for failing to automatically stay the contract award after a DFS protest, and for failing to adopt lease and concession criteria as required by law.
In a statement Monday announcing the supreme court appeal, airport executive manager chuck ada called the procurement "open, transparent and fair." He says it was their duty to get the best deal possible, and he says the one with Lotte is one of the most advantageous ever. He adds that the airport has already earned 70-million of the 154-million due over the contract term, and Lotte invested another 23-million in capital improvements.
Airport attorney Genevieve Rapadas says the DFS protests were frivolous and she was surprised that the court chose to accept their excuses for not following the rules for protest.
DFS attorney Maurice Suh also issued a statement saying although this is a significant step in the right direction, DFS looks forward to continuing to press its claims against GIAA and Lotte to seek redress for its misconduct and the considerable damage done."
Meanwhile, the court wrote that it was in the public interest for Lotte to remain as the retail operator until a new concessionaire is procured.
