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Attorney General Assistance Requested in Guam Airport Dispute

Tuesday, July, 19, 2016

The AB Won Pat International Airport Authority in Guam has asked the attorney general to help them have an arbitration award vacated. The airport authority stated it would like to work with the attorney general in a press release and described the award as “clearly erroneous.”


The award was given by an arbitration panel in May and totals nearly $2 million. That same panel also ordered the airport authority to pay the legal fees and the total cost of arbitration fees and expected. Estimates show the total amount reaching nearly $2.5 million.


According to the release, the airport authority it was the lease with DFS that required disputes be settled within the Guam court system. Instead, DFS used arbitration – something that the airport authority believes resulted in higher cost to the airport and the people of Guam. Off-island arbitrators were used.


Those familiar with the situation believe the chances of the arbitration being vacated are slim. Guam’s Supreme Court cites federal statute that the award and decision can be set aside if it’s found it was granted through corruption or undue means, or if the arbitrators were guilty of misconduct or exceeding their power.


The airport authority is confident this is the case and that the arbitration award will be thrown out. Their law firm is the same one defending the $14 million arbitration award against the Port of Authority in Guam in the YTK case.


A spokesperson from DFS claims it was the airport authority who originally requested arbitration in their contract and that the lawsuit ignores the fact there were multiple concession space leases