Guam Pacific Enterprise Inc v Guam Poresia Corporation [2007] GUSC 22; 2007 Guam 22 (31 December 2007)

IN THE SUPREME COURT OF GUAM

GUAM PACIFIC ENTERPRISE, INC.
Plaintiff-Appellant,

v.

GUAM PORESIA CORPORATION,
FRANK S.N. SHIMIZU and JOSEPH S.N. SHIMIZU,
in their capacity as Trustees of the Ambrosio T. and Rufina S.N.
Shimizu Inter Vivos Trust, and Does 1-5, Inclusive,
Defendants-Appellees.

Supreme Court Case No.: CVA05-010
Superior Court Case No.: CV1541-02

OPINION

Filed: December 31, 2007
Cite as: 2007 Guam 22

Appeal from the Superior Court of Guam
Argued and Submitted on October 9, 2006
Hagåtña, Guam

For Plaintiff-Appellant: Thomas C. Sterling, Esq. Blair Sterling Johnson Martinez & Leon Guerrero, P.C. Pacific News Bldg., Suite 1008 238 Archbishop F.C. Flores St. Hagåtña, Guam 96910

For Defendants-Appellees Frank S.N. Shimizu and Joseph S.N. Shimizu in their capacity as Trustees of the Ambrosio T. and Rufina S.N. Shimizu Inter Vivos Trust: Randall Todd Thompson, Esq. Mair, Mair, Spade & Thompson Pacific News Bldg., Suite 801 238 Archbishop F.C. Flores St. Hagåtña, Guam 96910

BEFORE: F. PHILIP CARBULLIDO, Chief Justice; ROBERT J. TORRES, JR., Associate Justice; RICHARD H. BENSON, Justice Pro Tempore.

CARBULLIDO, C.J.:

[1] Plaintiff-Appellant Guam Pacific Enterprise, Inc. ("GPE") appeals from the trial court’s grant of summary judgment in favor of Defendants-Appellees Frank S.N. Shimizu and Joseph S.N. Shimizu, in their capacity as Trustees of the Ambrosio T. and Rufina S.N. Shimizu Inter Vivos Trust ("the Trust"), wherein the court held that the Notice of Non-Responsibility ("Notice") posted and recorded by the Trust served to put GPE on notice that the Trust denied any liability for materials requested by Defendant-Appellee Guam Poresia Corporation ("Poresia").

[2] We hold that the trial court erred in determining that the Notice of Non-Responsibility posted and recorded by the Trust was sufficient to defeat GPE’s mechanic’s lien under 7 GCA § 33203(b). Additionally, we hold that where a lessee is held to be the agent of the lessor, in applying the factors as discussed in this opinion, a lessor cannot shield its liability by posting and recording a Notice of Non-Responsibility as required under section 33203(b). We therefore reverse the trial court’s grant of summary judgment in favor of the Trust and remand for further proceedings in accordance with this opinion.