By: L.N. Reklai
November 30, 2017 (Koror, Palau) A private company, K Holdings, Inc. recently filed a suit against Governor Elender Ngirameketii in his personal capacity for damages for breach of oral contract and fraudulent misrepresentation. [restrict]
The claim states that Ngirameketii had received a $250,000 dollar payment in January of 2015 in exchange for transferring Use Right for a water area with approximately a 4,545 square meter, Lot No. B14-24-05, in Koror State waters to K Holdings Inc. This transaction occurred in 2015 but Ngirameketii has not performed his part of the agreement to date.
Furthermore, the suit claim Ngirameketii had breached their oral contract by refusing to transfer the lot as well as pay back the money he received for it.
Additionally the suit claim that both K Holdings and Ngirameketii had agreed that since K Holdings was advancing the funds to purchase the Use Right, that should a third-party purchase the right from K Holdings, that K Holdings will be compensated for the original purchase price of $250,000 plus additional $50,000 for advancing payment and any additional profits will be split between the parties.
The suit asserts that Ngirameketii had fraudulently misrepresent to K Holdings by agreeing to transfer the Use Right to them upon receiving the funds and thereafter refused to transfer the Use right or refund the money to K Holdings.
K Holdings Inc., asks the court to order Ngirameketii to perform the contract and deliver the property, compensate for damages, attorney’s fees and other relief the Court deem proper.
The lot in question is Water/Submerged Land Use Right issued by Koror State Government to Ellender Ngirameketii, located adjacent to Fisheries Dock and Kramers Restaurant. The term is for 50 years with 49 year option to renew. The contract also has a provision that if no construction or improvements are commenced within one year from the date of the contract, the use right will automatically terminate. [/restrict]