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{\title IN THE SUPREME COURT OF GUAM}{\author lroberto}{\operator blake_r}{\creatim\yr2005\mo8\dy12\hr9\min4}{\revtim\yr2006\mo3\dy10\hr11\min7}{\version5}{\edmins3}{\nofpages8}{\nofwords3004}{\nofchars17129}{\*\company Superior Court of Guam}
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\fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\i\fs20\insrsid10645010 Pangelinan v. Gutierrez}{\fs20\insrsid10645010 , Opinion\tab \tab Page }{\field{\*\fldinst {\fs20\insrsid10645010 PAGE }}{\fldrslt {
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\fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\b\insrsid10645010\charrsid4872922 IN THE SUPREME COURT OF GUAM}{\insrsid4872922 
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\par }\pard \qc \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid4872922 {\b\insrsid10645010\charrsid4872922 VICENTE C. PANGELINAN and JOSEPH C. WESLEY}{\insrsid10645010\charrsid4872922 
\par }{\insrsid10645010\charrsid4872922 Plaintiffs-Appellants,
\par }\pard \ql \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid14439426 {\insrsid10645010\charrsid4872922 
\par }\pard \qc \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid4872922 {\b\insrsid10645010\charrsid4872922 v.}{\insrsid10645010\charrsid4872922 
\par }\pard \ql \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid14439426 {\insrsid10645010\charrsid4872922 
\par }\pard \qc \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid4872922 {\b\insrsid10645010\charrsid4872922 CARL T.C. GUTIERREZ, Governor, JOHN F. TARANTINO, 
\par Attorney General, JAMES H. UNDERWOOD, Director of the 
\par Department of Public Works; EDWARD G. UNTALAN, 
\par Administrator of the Guam Economic Development Authority; 
\par CARL J.C. AGUON, Director of the Department of Land 
\par Management; Y}{\b\insrsid10645010\charrsid4872922 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\b\insrsid10645010\charrsid4872922 ASELA A. PEREIRA, Treasurer of Guam; 
\par GOVERNMENT OF GUAM}{\insrsid10645010\charrsid4872922 
\par }{\insrsid10645010\charrsid4872922 Defendants-Appellees,
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\par }\pard \ql \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid14439426 {\insrsid10645010\charrsid4872922 
\par }\pard \qc \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid4872922 {\b\insrsid10645010\charrsid4872922 GUAM RESOURCE RECOVERY PARTNERS}{\insrsid10645010\charrsid4872922 
\par }{\insrsid10645010\charrsid4872922 Intervening Defendants-Appellees.}{\insrsid4872922 
\par 
\par }{\insrsid10645010\charrsid4872922 Supreme Court Case No. CVA02-003
\par Superior Court Case No. SP0212-00}{\insrsid4872922 
\par 
\par }{\b\insrsid10645010\charrsid4872922 OPINION}{\insrsid4872922 
\par 
\par }{\b\insrsid10645010\charrsid4872922 Filed:}{\b\insrsid4872922  }{\b\insrsid10645010\charrsid4872922 June 27, 2003}{\insrsid4872922 
\par 
\par }{\b\insrsid10645010\charrsid4872922 Cite as:}{\b\insrsid4872922  }{\b\insrsid10645010\charrsid4872922 2003 Guam 13}{\insrsid4872922 
\par 
\par }{\insrsid10645010\charrsid4872922 Appeal from the Superior Court of Guam
\par Argued and submitted on February 11, 2003
\par Hag\'e5t\'f1a, Guam
\par }\pard \qj \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid4872922 {\insrsid10645010\charrsid4872922 
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\par }{\ul\insrsid10645010\charrsid4872922 Appearing for the Plaintiffs- Appellants}{\insrsid10645010\charrsid4872922 :
\par Michael F. Phillips, Esq.
\par Phillips & Bordallo, P.C.
\par 410 W. O}{\insrsid10645010\charrsid4872922 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid10645010\charrsid4872922 Brien Drive, Ste. 102
\par Hag\'e5t\'f1a, Guam}{\insrsid4872922  }{\insrsid10645010\charrsid4872922 96910\cell 
\par }{\ul\insrsid10645010\charrsid4872922 Appearing for the Defendants-Appellees}{\insrsid10645010\charrsid4872922 :
\par Eric A. Heisel
\par Assistant Attorney General
\par Office of the Attorney General
\par Suite 2-200E, Judicial Center Building
\par 120 W. O}{\insrsid10645010\charrsid4872922 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid10645010\charrsid4872922 Brien Drive
\par Hag\'e5t\'f1a, Guam 96910\tab 
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\cellx9240\row }\pard \ql \li0\ri0\nowidctlpar\intbl\faauto\rin0\lin0\pararsid4872922 {\insrsid10645010\charrsid4872922 
\par }{\ul\insrsid10645010\charrsid4872922 Appearing for Intervening Defendant-Appellee}{\insrsid10645010\charrsid4872922 :
\par Arthur B. Clark, Esq.
\par Calvo & Clark, LLP
\par 655 S. Marine Drive, Ste. 202
\par Tamuning, Guam 96911\cell 
\par \cell }\pard \ql \li0\ri0\widctlpar\intbl\aspalpha\aspnum\faauto\adjustright\rin0\lin0 {\insrsid10645010\charrsid4872922 \trowd \irow1\irowband1\lastrow \ts11\trqc\trgaph120\trleft-120\trftsWidth1\trpaddl120\trpaddr120\trpaddfl3\trpaddfr3\tblrsid4872922 
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\par }{\insrsid10645010\charrsid4872922 BEFORE:}{\insrsid4872922  }{\insrsid10645010\charrsid4872922 FRANCES M. TYDINGCO-GATEWOOD, Chief Justice (Acting)}{\cs15\super\insrsid10645010\charrsid4872922 \chftn {\footnote \pard\plain 
\qj \fi720\li0\ri0\sa240\nowidctlpar\faauto\rin0\lin0\itap0 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\cs15\fs20\super\insrsid10645010 \chftn }{\fs20\insrsid10645010 
 The Chief Justice recused himself from this case and as the only full-time justice on the panel, Justice Tydingco-Gatewood was appointed Acting Chief Justice.  }}}{\insrsid10645010\charrsid4872922 ;}{\insrsid4872922  }{\insrsid10645010\charrsid4872922 
PETER C. SIGUENZA, JR., Justice }{\i\insrsid10645010\charrsid4872922 Pro Tempore;}{\insrsid4872922  }{\insrsid10645010\charrsid4872922 JOHN A. MANGLONA, Justice }{\i\insrsid10645010\charrsid4872922 Pro Tempore}{\insrsid10645010\charrsid4872922 .}{
\insrsid4872922 
\par 
\par }{\b\insrsid10645010\charrsid4872922 TYDINGCO-GATEWOOD, J.:}{\insrsid10645010\charrsid4872922 
\par }{\b\insrsid4872922 
\par }{\b\insrsid10645010\charrsid4872922 [1]}{\insrsid10645010\charrsid4872922 \tab This case addresses the enforceability of a 1996 contractual agreement between Defendant-Appellee Government of Guam (}{\insrsid10645010\charrsid4872922 {\field{\*\fldinst 
SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid10645010\charrsid4872922 the Government}{\insrsid10645010\charrsid4872922 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{
\insrsid10645010\charrsid4872922 ) and Intervening Defendant-Appellee Guam Resource Recovery Partners (}{\insrsid10645010\charrsid4872922 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{
\insrsid10645010\charrsid4872922 GRRP}{\insrsid10645010\charrsid4872922 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid10645010\charrsid4872922 ) (collectively referred to as }{
\insrsid10645010\charrsid4872922 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid10645010\charrsid4872922 Appellees}{\insrsid10645010\charrsid4872922 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols"
 \\s 12}{\fldrslt\f36\fs24}}}{\insrsid10645010\charrsid4872922 ).}{\insrsid4872922  }{\insrsid10645010\charrsid4872922 In the 1996 agreement, the Government granted an exclusive license to GRRP 
for the construction and operation of a waste reduction and resource recovery facility.}{\insrsid4872922  }{\insrsid10645010\charrsid4872922 Plaintiffs-Appellants Vicente C. Pangelinan and Joseph C. Wesley (}{\insrsid10645010\charrsid4872922 
{\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid10645010\charrsid4872922 Appellants}{\insrsid10645010\charrsid4872922 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{
\insrsid10645010\charrsid4872922 ) argue that the 1996 agreement violates several Guam statutes, including Guam}{\insrsid10645010\charrsid4872922 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{
\insrsid10645010\charrsid4872922 s procurement law.}{\insrsid4872922  }{\insrsid10645010\charrsid4872922 We find that the 1996 agreement is in violation of Section 1423j of the Organic Act of Guam and Title 5 GCA }{\insrsid10645010\charrsid4872922 
{\field{\*\fldinst SYMBOL 39 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid10645010\charrsid4872922 22401 and therefore reverse the judgment of the lower court.}{\insrsid4872922  }{\insrsid10645010\charrsid4872922 
Our finding on these issues precludes our need to address any further issues brought before us on appeal.
\par 
\par }\pard \qc \li0\ri0\nowidctlpar\tqc\tx4680\faauto\rin0\lin0\itap0\pararsid4872922 {\b\insrsid10645010\charrsid4872922 I.}{\insrsid10645010\charrsid4872922 
\par }\pard \qj \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid4872922 {\b\insrsid4872922 
\par }{\b\insrsid10645010\charrsid4872922 [2]}{\insrsid10645010\charrsid4872922 \tab In 1982, the Government began contracting for the construction of a waste reduction and resource recovery facility on Guam.}{\insrsid4872922  }{
\insrsid10645010\charrsid4872922 The first contract was entered into between the Government, Guam Economic Development Agency (}{\insrsid10645010\charrsid4872922 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{
\insrsid10645010\charrsid4872922 GEDA}{\insrsid10645010\charrsid4872922 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid10645010\charrsid4872922 ), and International Energy Enterprises, Inc. (}{
\insrsid10645010\charrsid4872922 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid10645010\charrsid4872922 IEEI}{\insrsid10645010\charrsid4872922 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols"
 \\s 12}{\fldrslt\f36\fs24}}}{\insrsid10645010\charrsid4872922 ).}{\insrsid4872922  }{\insrsid10645010\charrsid4872922 This 1982 agreement granted IEEI an exclusive license to arrange for the financing, construction, and operation of the waste facility.}{
\insrsid4872922  }{\insrsid10645010\charrsid4872922 Appellants}{\insrsid10645010\charrsid4872922 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid10645010\charrsid4872922 
 Excerpts of Record, tab 12, Ex. A, p. 1 (License Agreement) (}{\insrsid10645010\charrsid4872922 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid10645010\charrsid4872922 1982 License}{
\insrsid10645010\charrsid4872922 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid10645010\charrsid4872922 ).}{\insrsid4872922  }{\insrsid10645010\charrsid4872922 
In return for constructing and operating the facility, the Government and GEDA promised IEEI that Guam Power Authority (}{\insrsid10645010\charrsid4872922 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{
\insrsid10645010\charrsid4872922 GPA}{\insrsid10645010\charrsid4872922 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid10645010\charrsid4872922 ) would purchase all the electricity the plant produced.}{
\insrsid4872922  }{\insrsid10645010\charrsid4872922 Appellants}{\insrsid10645010\charrsid4872922 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid10645010\charrsid4872922 
 Excerpts of Record, tab 12, Ex. A, p. 5 (License Agreement).}{\insrsid10645010 
\par }{\insrsid4872922\charrsid4872922 
\par }{\b\insrsid10645010\charrsid4872922 [3]}{\insrsid10645010\charrsid4872922 \tab A dispute later arose between GEDA and IEEI with respect to the 1982 License.}{\insrsid4872922  }{\insrsid10645010\charrsid4872922 
GEDA claimed that the 1982 License was void as a result of IEEI}{\insrsid10645010\charrsid4872922 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid10645010\charrsid4872922 
s failure to perform and filed suit in the Superior Court of Guam.}{\insrsid4872922  }{\insrsid10645010\charrsid4872922 However, before GEDA further prosecuted its claim, it entered a second agreement, this time with G. Power, Inc. (}{
\insrsid10645010\charrsid4872922 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid10645010\charrsid4872922 GPI}{\insrsid10645010\charrsid4872922 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols"
 \\s 12}{\fldrslt\f36\fs24}}}{\insrsid10645010\charrsid4872922 ).}{\insrsid4872922  }{\insrsid10645010\charrsid4872922 GPI was a relevant party to these transactions because it held an option to purchase the 1982 license from IEEI.}{\insrsid4872922  }{
\insrsid10645010\charrsid4872922 The agreement between GEDA and GPI, entered into in 1989, required GEDA to forgo prosecution of its claim against GEDA for an eight month period.}{\insrsid4872922  }{\insrsid10645010\charrsid4872922 
In return, GPI gave to GEDA $10,000.00 and a promise to use its best efforts to exercise the option.}{\insrsid10645010 
\par }{\insrsid4872922\charrsid4872922 
\par }{\b\insrsid10645010\charrsid4872922 [4]}{\insrsid10645010\charrsid4872922 \tab In 1990, GPI exercised its option and purchased the license from IEEI.}{\insrsid4872922  }{\insrsid10645010\charrsid4872922 
An amended license agreement was entered between GPI, GEDA, the Government, and GRRP.}{\insrsid4872922  }{\insrsid10645010\charrsid4872922 GRRP was an entity formed by GPI and Enprotech Guam, Inc. to fulfill GPI}{\insrsid10645010\charrsid4872922 
{\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid10645010\charrsid4872922 s obligations under the amended license agreement.}{\insrsid4872922  }{\insrsid10645010\charrsid4872922 
The amended license agreement stated that GRRP and the Government intended to enter into a licensing agreement for the construction and operation of the waste-to-energy facility.}{\insrsid4872922  }{\insrsid10645010\charrsid4872922 
It also modified certain terms and conditions of the original 1982 licensing agreement.}{\insrsid4872922  }{\insrsid10645010\charrsid4872922 
Further, the amended license agreement stated that assignment of the license from IEEI to GRRP would terminate any and all interests that IEEI ma}{\insrsid4872922 y have had in the 1982 License.}{\insrsid10645010 
\par }{\insrsid4872922\charrsid4872922 
\par }{\b\insrsid10645010\charrsid4872922 [5]}{\insrsid10645010\charrsid4872922 \tab In 1996, GRRP and the Government entered into the licensing agreement contemplated by the 1990 amended license agreement.}{\insrsid4872922  }{\insrsid10645010\charrsid4872922 
Under this final agreement (}{\insrsid10645010\charrsid4872922 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid10645010\charrsid4872922 1996 Agreement}{\insrsid10645010\charrsid4872922 {\field{\*\fldinst 
SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid10645010\charrsid4872922 ), which is the focus of the instant litigation,}{\insrsid4872922  }{\insrsid10645010\charrsid4872922 
GRRP was given the exclusive right to develop and operate a waste reduction and resources recovery facility.}{\insrsid4872922  }{\insrsid10645010\charrsid4872922 The contract was signed by the Government and GRRP, and recommended for execution by GEDA.}{
\insrsid4872922  }{\insrsid10645010\charrsid4872922 The legislatur}{\insrsid4872922 e did not approve the contract.}{\insrsid10645010 
\par }{\insrsid4872922\charrsid4872922 
\par }{\b\insrsid10645010\charrsid4872922 [6]}{\insrsid10645010\charrsid4872922 \tab After the 1996 Agreement was signed, the legislature enacted two separate public laws that severely limited the Government}{\insrsid10645010\charrsid4872922 
{\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid10645010\charrsid4872922 s ability to comply with certain terms of the 1996 Agreement.}{\insrsid4872922  }{\insrsid10645010\charrsid4872922 
The first was P.L. 24-57:6, which prohibited the Government from expending any funds in fulfillment of the terms of the 1996 Agreement.}{\insrsid4872922  }{\insrsid10645010\charrsid4872922 The second was P.L.
 24-272, which effectively prevented the GEDA administrator from issuing permits for the operation of waste-to-energy facilities.}{\insrsid10645010 
\par }{\insrsid4872922\charrsid4872922 
\par }{\b\insrsid10645010\charrsid4872922 [7]}{\insrsid10645010\charrsid4872922 \tab In June 2000, Appellants filed a Complaint for Declaratory and Injunctive Relief in the Superior Court, asking the lower c
ourt to declare the 1996 agreement void and enjoin the Government from performing under the contract.}{\insrsid4872922  }{\insrsid10645010\charrsid4872922 Appellants argued that the agreement violated the following: (1) Title 12 GCA }{
\insrsid10645010\charrsid4872922 {\field{\*\fldinst SYMBOL 39 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid10645010\charrsid4872922 50103(f), P.L. 24-139, and P.L
. 24-272, by authorizing GEDA to issue bonds without first obtaining legislative approval; (2) Title 1 GCA }{\insrsid10645010\charrsid4872922 {\field{\*\fldinst SYMBOL 39 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{
\insrsid10645010\charrsid4872922 1800, by contracting for the transfer of land without first obtaining legislative approval; (3) Title 48 U.S.C. }{\insrsid10645010\charrsid4872922 {\field{\*\fldinst SYMBOL 39 \\f "WP TypographicSymbols" \\s 12}{\fldrslt
\f36\fs24}}}{\insrsid10645010\charrsid4872922  1423j(a), by authorizing GEDA to incur a public debt without first obtaining legislative approval; and (4) Title 5 GCA, Chapter 5, by authorizing for the expenditure of public funds without following th
e procurement process.}{\insrsid10645010 
\par }{\insrsid4872922\charrsid4872922 
\par }{\b\insrsid10645010\charrsid4872922 [8]}{\insrsid10645010\charrsid4872922 \tab On July 31, 2001, having stipulated that there were no disputes as to any material fact, Appellants and Appellees each moved for summary judgment.}{\insrsid10645010 
\par }{\insrsid4872922\charrsid4872922 
\par }{\b\insrsid10645010\charrsid4872922 [9]}{\insrsid10645010\charrsid4872922 \tab On November 6, 2001, the lower court issued its Decision and Order, denying Appellants}{\insrsid10645010\charrsid4872922 {\field{\*\fldinst SYMBOL 61 \\f 
"WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid10645010\charrsid4872922  summary judgment motion and granting summary judgment in favor of Appellees.}{\insrsid4872922  }{\insrsid10645010\charrsid4872922 
Specifically, the lower court held as a matter of law, that the Procurement Law found in Title 5 GCA Chapter 5 does not apply to the}{\insrsid4872922  }{\insrsid10645010\charrsid4872922 1996 Agreement; there is no violation of 1 GCA }{
\insrsid10645010\charrsid4872922 {\field{\*\fldinst SYMBOL 39 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid10645010\charrsid4872922 
1800 because the operation of a waste-to-energy facility is not a reserved government function; and there is no violation of Section 1423j(a) of the Organic Act because }{\insrsid10645010\charrsid4872922 {\field{\*\fldinst SYMBOL 65 \\f 
"WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid10645010\charrsid4872922 [t]he Court finds nothing in the agreement resulting in an}{\insrsid4872922  }{\insrsid10645010\charrsid4872922 
appropriation of government funds without Legislative approval.}{\insrsid10645010\charrsid4872922 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid4872922  }{\insrsid10645010\charrsid4872922 Record 
on Appeal, tab 58, p.7 (Decision and Order).}{\insrsid4872922  }{\insrsid10645010\charrsid4872922 
Finally, the lower court further found P.L. 24-57, and P.L. 24-272 to be in violation of the Contract Clause of the Organic Act and accordingly, inorganic and unconstitutional.}{\insrsid10645010 
\par }{\insrsid4872922\charrsid4872922 
\par }{\b\insrsid10645010\charrsid4872922 [10]}{\insrsid10645010\charrsid4872922 \tab It is from the lower court}{\insrsid10645010\charrsid4872922 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{
\insrsid10645010\charrsid4872922 s decision that the instant appeal arises.}{\insrsid4872922  }{\insrsid10645010\charrsid4872922 
\par 
\par }\pard \qc \li0\ri0\nowidctlpar\tqc\tx4680\faauto\rin0\lin0\itap0\pararsid4872922 {\b\insrsid10645010\charrsid4872922 II.
\par }\pard \qj \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid4872922 {\b\insrsid4872922 
\par }{\b\insrsid10645010\charrsid4872922 [11]}{\insrsid10645010\charrsid4872922 \tab This court has jurisdiction over final judgments of the Superior Court pursuant to Title 7 GCA }{\insrsid10645010\charrsid4872922 {\field{\*\fldinst SYMBOL 39 \\f 
"WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}{\field{\*\fldinst SYMBOL 39 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid10645010\charrsid4872922  3107 and 3108 (1994).
\par 
\par }\pard \qc \li0\ri0\nowidctlpar\tqc\tx4680\faauto\rin0\lin0\itap0\pararsid4872922 {\b\insrsid10645010\charrsid4872922 III.}{\insrsid10645010\charrsid4872922 
\par }\pard \qj \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid4872922 {\b\insrsid4872922 
\par }{\b\insrsid10645010\charrsid4872922 [12]}{\insrsid10645010\charrsid4872922 \tab A trial court}{\insrsid10645010\charrsid4872922 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid10645010\charrsid4872922 
s decision to grant or deny summary judgment is reviewed }{\i\insrsid10645010\charrsid4872922 de novo}{\insrsid10645010\charrsid4872922 .}{\insrsid4872922  }{\i\insrsid10645010\charrsid4872922 See Iizuka Corp. v. Kawasho Int}{
\i\insrsid10645010\charrsid4872922 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\i\insrsid10645010\charrsid4872922 l (Guam), Inc.}{\insrsid10645010\charrsid4872922 , 1997 Guam 10, }{
\insrsid10645010\charrsid4872922 {\field{\*\fldinst SYMBOL 38 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid10645010\charrsid4872922  7.}{\insrsid4872922  }{\insrsid10645010\charrsid4872922 Summary judgment is proper }{
\insrsid10645010\charrsid4872922 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid10645010\charrsid4872922 if the pleadings, depositions, answers to interrogatories, and admissions on file, togethe
r with the affidavits, if any, show that there is no genuine issue as to any material fact and that the moving party is entitled to a judgment as a matter of law.}{\insrsid10645010\charrsid4872922 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols"
 \\s 12}{\fldrslt\f36\fs24}}}{\insrsid4872922  }{\insrsid10645010\charrsid4872922 Guam R. Civ. P. 56(c) (1995).}{\insrsid10645010 
\par }{\insrsid4872922\charrsid4872922 
\par }{\b\insrsid10645010\charrsid4872922 [13]}{\insrsid10645010\charrsid4872922 \tab Issues of statutory construction and contract interpretation are reviewed }{\i\insrsid10645010\charrsid4872922 de novo.}{\insrsid4872922  }{
\i\insrsid10645010\charrsid4872922 See Long-Term Credit Bank of Japan v. Superior Court}{\insrsid10645010\charrsid4872922 , 2003 Guam 10, }{\insrsid10645010\charrsid4872922 {\field{\*\fldinst SYMBOL 38 \\f "WP TypographicSymbols" \\s 12}{\fldrslt
\f36\fs24}}}{\insrsid10645010\charrsid4872922  28;}{\insrsid4872922  }{\i\insrsid10645010\charrsid4872922 Ronquillo v. Korea Auto., Fire, & Marine Ins. Co.}{\insrsid10645010\charrsid4872922 , 2001 Guam 25, }{\insrsid10645010\charrsid4872922 
{\field{\*\fldinst SYMBOL 38 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid10645010\charrsid4872922  10.
\par 
\par }\pard \qc \li0\ri0\nowidctlpar\tqc\tx4680\faauto\rin0\lin0\itap0\pararsid4872922 {\b\insrsid10645010\charrsid4872922 IV.}{\insrsid10645010\charrsid4872922 
\par }\pard \qj \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid4872922 {\b\insrsid4872922 
\par }{\b\insrsid10645010\charrsid4872922 [14]}{\insrsid10645010\charrsid4872922 \tab The issue for our }{\i\insrsid10645010\charrsid4872922 de novo}{\insrsid10645010\charrsid4872922  review is the validity of the 1996 Agreement.}{\insrsid4872922  }{
\insrsid10645010\charrsid4872922 Appellants argue that the 1996 Agreement attempts to appropriate government funds in violation of 48 U.S.C. }{\insrsid10645010\charrsid4872922 {\field{\*\fldinst SYMBOL 39 \\f "WP TypographicSymbols" \\s 12}{\fldrslt
\f36\fs24}}}{\insrsid4872922  1423j.}{\insrsid10645010 
\par }{\insrsid4872922\charrsid4872922 
\par }{\b\insrsid10645010\charrsid4872922 [15]}{\insrsid10645010\charrsid4872922 \tab The Organic Act of Guam, 48 U.S.C. }{\insrsid10645010\charrsid4872922 {\field{\*\fldinst SYMBOL 39 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}{\field{\*\fldinst 
SYMBOL 39 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid10645010\charrsid4872922  1421, }{\i\insrsid10645010\charrsid4872922 et seq}{\insrsid10645010\charrsid4872922 
., expressly reserves for the Legislature the power to appropriate money.}{\insrsid4872922  }{\insrsid10645010\charrsid4872922 48 U.S.C. }{\insrsid10645010\charrsid4872922 {\field{\*\fldinst SYMBOL 39 \\f "WP TypographicSymbols" \\s 12}{\fldrslt
\f36\fs24}}}{\insrsid10645010\charrsid4872922  1423j(a).}{\insrsid4872922  }{\insrsid10645010\charrsid4872922 (}{\insrsid10645010\charrsid4872922 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{
\insrsid10645010\charrsid4872922 Appropriations, except as otherwise provided in this chapter, and except such appropriations as shall be made from time to time by the Congress of the United States, shall be made by the legislature.}{
\insrsid10645010\charrsid4872922 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid10645010\charrsid4872922 );}{\insrsid4872922  }{\i\insrsid10645010\charrsid4872922 In re Request of Gutierrez}{
\insrsid10645010\charrsid4872922 , 2002 Guam 1, }{\insrsid10645010\charrsid4872922 {\field{\*\fldinst SYMBOL 38 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid10645010\charrsid4872922  38.}{\insrsid4872922  }{
\insrsid10645010\charrsid4872922 Accordingly, }{\insrsid10645010\charrsid4872922 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid10645010\charrsid4872922 
pursuant to the Organic Act, the Legislature has plenary or absolute power over appropriations. . . . defined as the authority to set apart from the public revenue a certain sum of money for a specified object.}{\insrsid10645010\charrsid4872922 
{\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid4872922  }{\i\insrsid10645010\charrsid4872922 In re Request of Gutierrez}{\insrsid10645010\charrsid4872922 , 2002 Guam 1 at }{\insrsid10645010\charrsid4872922 
{\field{\*\fldinst SYMBOL 38 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid10645010\charrsid4872922  38 (citations and quotation marks omitted). The policy behind the plenary power of the legislature is that }{
\insrsid10645010\charrsid4872922 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid10645010\charrsid4872922 
it is for the Legislature and not the executive branch, to determine finally which social objectives or programs are worthy of pursuit.}{\insrsid10645010\charrsid4872922 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}
{\insrsid4872922  }{\i\insrsid10645010\charrsid4872922 Id. }{\insrsid10645010\charrsid4872922 (citation and quotation marks omitted)}{\insrsid10645010 
\par }{\insrsid4872922\charrsid4872922 
\par }{\b\insrsid10645010\charrsid4872922 [16]}{\insrsid10645010\charrsid4872922 \tab Although not specifically cited by the parties or the lower court, as a corollary to Section 1423j, Title 5 GCA }{\insrsid10645010\charrsid4872922 {\field{\*\fldinst SYMBOL
 39 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid10645010\charrsid4872922 22401(a)(3)}{\insrsid4872922  }{\insrsid10645010\charrsid4872922 provides that, }{\insrsid10645010\charrsid4872922 {\field{\*\fldinst SYMBOL 65 \\f 
"WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid10645010\charrsid4872922 
No officer or employee of the government of Guam, including the Governor of Guam, shall . . . . [i]nvolve the government of Guam in any contract or other obligation, for the payment of money for any purpose, }{\i\insrsid10645010\charrsid4872922 
in advance of the appropriation}{\insrsid10645010\charrsid4872922  made for such purpose. . . . }{\insrsid10645010\charrsid4872922 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid10645010\charrsid4872922 
 Title 5 GCA }{\insrsid10645010\charrsid4872922 {\field{\*\fldinst SYMBOL 39 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid10645010\charrsid4872922 22401(a)(3)}{\cs15\super\insrsid10645010\charrsid4872922 \chftn {\footnote \pard\plain 
\qj \fi720\li0\ri0\sa240\nowidctlpar\faauto\rin0\lin0\itap0 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\cs15\fs20\super\insrsid10645010 \chftn }{\fs20\insrsid10645010   Title 5 GCA }{\fs20\insrsid10645010 {\field{\*\fldinst SYMBOL 39 \\f 
"WP TypographicSymbols" \\s 10}{\fldrslt\f36\fs20}}}{\fs20\insrsid10645010 22401(a)(3), formerly }{\fs20\insrsid10645010 {\field{\*\fldinst SYMBOL 39 \\f "WP TypographicSymbols" \\s 10}{\fldrslt\f36\fs20}}}{\fs20\insrsid10645010 
 6118(a)(3) of the Government Code, was in effect since October 11, 1962.}}}{\insrsid10645010\charrsid4872922  (emphasis added).
\par 
\par }{\b\insrsid10645010\charrsid4872922 [17]}{\insrsid10645010\charrsid4872922 \tab Title 5 GCA }{\insrsid10645010\charrsid4872922 {\field{\*\fldinst SYMBOL 39 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid10645010\charrsid4872922 
22401 substantially tracks the language of the federal Anti-Deficiency Act, found in 31 U.S.C.A. }{\insrsid10645010\charrsid4872922 {\field{\*\fldinst SYMBOL 39 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid10645010\charrsid4872922 
 1341,}{\cs15\super\insrsid10645010\charrsid4872922 \chftn {\footnote \pard\plain \qj \fi720\li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\cs15\fs20\super\insrsid10645010 \chftn }{
\fs20\insrsid10645010  Title 31 U.S.C.A. }{\fs20\insrsid10645010 {\field{\*\fldinst SYMBOL 39 \\f "WP TypographicSymbols" \\s 10}{\fldrslt\f36\fs20}}}{\fs20\insrsid10645010 1341(a)(1) states, }{\fs20\insrsid10645010 {\field{\*\fldinst SYMBOL 65 \\f 
"WP TypographicSymbols" \\s 10}{\fldrslt\f36\fs20}}}{\fs20\insrsid10645010 
an officer or employee of the United States Government or of the District of Columbia government may not . . . . (B) involve either government in a contract or obligation for the payment of money before an appropriation is made unless authorized by law.}{
\fs20\insrsid10645010 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 10}{\fldrslt\f36\fs20}}}{\fs20\insrsid10645010   
\par }}}{\insrsid10645010\charrsid4872922  which addresses }{\insrsid10645010\charrsid4872922 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid10645010\charrsid4872922 
the problem that Executive branch officials were obligating funds before they were appropriated by Congress, and then making deficiency re
quests for appropriations that Congress had little choice in deciding because government agencies had basically committed to the United States to make good on the promise.}{\insrsid10645010\charrsid4872922 {\field{\*\fldinst SYMBOL 64 \\f 
"WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid4872922  }{\insrsid10645010\charrsid4872922 1 West's Fed. Admin. Prac. }{\insrsid10645010\charrsid4872922 {\field{\*\fldinst SYMBOL 39 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{
\insrsid10645010\charrsid4872922  531, n.1 (4th ed.).}{\insrsid4872922  }{\insrsid10645010\charrsid4872922 Similarly, the policy prohibiting }{\insrsid10645010\charrsid4872922 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt
\f36\fs24}}}{\insrsid10645010\charrsid4872922 illegal expenditures}{\insrsid10645010\charrsid4872922 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid10645010\charrsid4872922 
 is significant enough to warrant enforcement through penalties, including criminal penalties.}{\insrsid4872922  }{\insrsid10645010\charrsid4872922 Thus, }{\insrsid10645010\charrsid4872922 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols"
 \\s 12}{\fldrslt\f36\fs24}}}{\insrsid10645010\charrsid4872922 [a]ny officer or employee of the government of Guam}{\insrsid10645010\charrsid4872922 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{
\insrsid10645010\charrsid4872922  who violates Title 5 GCA }{\insrsid10645010\charrsid4872922 {\field{\*\fldinst SYMBOL 39 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid10645010\charrsid4872922 22401(a) }{
\insrsid10645010\charrsid4872922 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid10645010\charrsid4872922 
shall be subjected to appropriate disciplinary action by the branch of the government concerned, including removal where warranted, and any officer or employee of the government of Guam who shall
 knowingly and willfully violate subsection (a) hereof shall be guilty of a misdemeanor.}{\insrsid10645010\charrsid4872922 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid4872922  }{
\insrsid10645010\charrsid4872922 5 GCA }{\insrsid10645010\charrsid4872922 {\field{\*\fldinst SYMBOL 39 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid10645010\charrsid4872922 22401(c).}{\insrsid10645010 
\par }{\insrsid4872922\charrsid4872922 
\par }{\b\insrsid10645010\charrsid4872922 [18]}{\insrsid10645010\charrsid4872922 \tab In interpreting the legal effect of the 1996 Agreemen
t, the lower court determined that although the agreement calls for the issuance of revenue bonds by GEDA, the agreement also properly and sufficiently acknowledges that legislative approval is a prerequisite to the issuance of such bonds.}{
\insrsid4872922  }{\insrsid10645010\charrsid4872922 Essentially, the lower court found }{\insrsid10645010\charrsid4872922 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid10645010\charrsid4872922 
nothing in the agreement resulting in an appropriation of government funds without Legislative approval}{\insrsid10645010\charrsid4872922 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{
\insrsid10645010\charrsid4872922  and for this reason, found no violation of }{\insrsid10645010\charrsid4872922 {\field{\*\fldinst SYMBOL 39 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid10645010\charrsid4872922  1423j.}{
\insrsid4872922  }{\insrsid10645010\charrsid4872922 Record on Appeal, tab 48, p. 7 (Decision and Order).}{\insrsid4872922  }{\insrsid10645010\charrsid4872922 We disagree.}{\insrsid4872922  }{\insrsid10645010\charrsid4872922 
\par 
\par }{\b\insrsid10645010\charrsid4872922 [19]}{\insrsid10645010\charrsid4872922 \tab At oral argument, Appellants correctly argued that, although the contractual language purports to acknowledge the need for legislative appropriation, it nonetheless violates 
}{\insrsid10645010\charrsid4872922 {\field{\*\fldinst SYMBOL 39 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid10645010\charrsid4872922  1423j because it}{\insrsid4872922  }{\insrsid10645010\charrsid4872922 
contracts for damages in the event that legislative approval is not obtained.
\par }{\b\insrsid4872922 
\par }{\b\insrsid10645010\charrsid4872922 [20]}{\insrsid10645010\charrsid4872922 \tab The provisions of the 1996 Agreement 
reveal the obligations of the Government to satisfy conditions precedent, including obtaining legislative appropriation, as well as the consequences for failure to satisfy such conditions.}{\insrsid4872922  }{\insrsid10645010\charrsid4872922 
Section 4.03, entitled }{\insrsid10645010\charrsid4872922 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid10645010\charrsid4872922  Conditions to Company's Obligation,}{\insrsid10645010\charrsid4872922 
{\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid10645010\charrsid4872922  states as a condition to GRRP}{\insrsid10645010\charrsid4872922 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols"
 \\s 12}{\fldrslt\f36\fs24}}}{\insrsid4872922 s obligation, that}{\insrsid10645010 
\par }{\insrsid4872922\charrsid4872922 
\par }\pard \qj \li720\ri720\nowidctlpar\faauto\rin720\lin720\itap0\pararsid4872922 {\insrsid10645010\charrsid4872922 (g) The Government shall have obtained all requisite Legislative Approval to t
he issuance by GEDA or another political subdivision of the Government of an aggregate amount of Bonds in an amount sufficient to finance the sum of the Facility Price and Financing Costs less the amount of Equity to be provided by the Company . . . . 

\par }\pard \qj \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid4872922 {\insrsid10645010\charrsid4872922 
\par Record on Appeal, tab 34, Ex. A, pp. 68-70 (1996 Agreement) (emphasis added).}{\insrsid4872922  }{\insrsid10645010\charrsid4872922 Section 4.04, entitled, }{\insrsid10645010\charrsid4872922 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols"
 \\s 12}{\fldrslt\f36\fs24}}}{\insrsid10645010\charrsid4872922 Satisfaction of Conditions Precedent,}{\insrsid10645010\charrsid4872922 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid10645010\charrsid4872922 
 delineates the effect of failure to sa}{\insrsid4872922 tisfy the conditions precedent:}{\insrsid10645010 
\par }{\insrsid4872922\charrsid4872922 
\par }\pard \qj \li720\ri720\nowidctlpar\faauto\rin720\lin720\itap0\pararsid4872922 {\insrsid10645010\charrsid4872922 If, despite such good faith and diligence, all of the said Conditions Precedent set forth in . . . }{\ul\insrsid10645010\charrsid4872922 4.03}
{\insrsid10645010\charrsid4872922  are not so satisfied or are not waived by the Party whose obligations are conditioned thereon . . . then that Party may, by notice in writing to the other Party,}{\insrsid4872922  }{\insrsid10645010\charrsid4872922 
terminate this Agreement as of the date of such notice, in which case this Agreement shall be null and void.}{\insrsid4872922  }{\insrsid10645010\charrsid4872922 In the event of a termination of this Agreemen
t . . . . (c) If such failure is the result of Government Fault}{\cs15\super\insrsid10645010\charrsid4872922 \chftn {\footnote \pard\plain \qj \fi720\li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {
\cs15\fs20\super\insrsid10645010 \chftn }{\fs20\insrsid10645010   In the definitions section of the 1996 Agreement, "Government Fault" is defined broadly and means:   }{\fs20\insrsid10645010 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols"
 \\s 10}{\fldrslt\f36\fs20}}}{\fs20\insrsid10645010 any material breach, failure, nonperformanc
e or noncompliance by the Government with the terms and provisions of this Agreement or the negligent or wrongful act or omission of the Government or any Government Affiliate of any agent, official, commissioner, employee, contractor, subcontractor at an
y tier or independent contractor of the Government or any Government Affiliate other than any breach, failure, nonperformance or noncompliance caused by an Uncontrollable Circumstance or Company Fault. . . .}{\fs20\insrsid10645010 {\field{\*\fldinst 
SYMBOL 64 \\f "WP TypographicSymbols" \\s 10}{\fldrslt\f36\fs20}}}{\fs20\insrsid10645010   Record on Appeal, tab 34, Ex. A, p. 28 (1996 Agreement).  
\par }}}{\insrsid10645010\charrsid4872922 , then (i) this Agreement shall terminate, (ii) }{\i\insrsid10645010\charrsid4872922 the Government shall pay}{\insrsid10645010\charrsid4872922  }{\i\insrsid10645010\charrsid4872922 
on or prior to the Termination Date to the Company its Phase I Development Costs, its Phase II Development Costs incurred through the Termination Date of this Agreement and the Defeasance Cost, if any, and the License Defeasance Cost,}{
\insrsid10645010\charrsid4872922  and (iii) the Company shall have no other claim against the Government arising from}{\insrsid4872922  or relating to this Agreement.}{\insrsid10645010\charrsid4872922 
\par }\pard \qj \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid4872922 {\insrsid10645010\charrsid4872922 
\par Record on Appeal, tab 34, Ex. A, pp. 68-70 (1996 Agreement) (emphasis added).
\par 
\par }\pard \qj \fi-720\li720\ri720\nowidctlpar\tx-1440\faauto\rin720\lin720\itap0\pararsid4872922 {\b\insrsid10645010\charrsid4872922 [21]}{\insrsid10645010\charrsid4872922 \tab Phase I Development Costs is d}{\insrsid4872922 efined by the 1996 Agreement as}{
\insrsid10645010 
\par }{\insrsid4872922\charrsid4872922 
\par }\pard \qj \li720\ri720\nowidctlpar\faauto\rin720\lin720\itap0\pararsid4872922 {\insrsid10645010\charrsid4872922 [o]ne million five hundred thousand dollars ($1,500,000), in respect of development services by the Company before January 1, 1993.}{
\insrsid4872922  }{\insrsid10645010\charrsid4872922 Phase I Development Costs shall not be subject to Cost Substantiation. 
\par }\pard \qj \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid4872922 {\insrsid10645010\charrsid4872922 
\par Record on Appeal, tab 34, Ex. A, p. 43 (1996 Agreement).}{\insrsid4872922  }{\insrsid10645010\charrsid4872922 Phase II Development Costs is also defined }{\insrsid4872922 by the 1996 Agreement and means}{\insrsid10645010\charrsid4872922 
\par }\pard \qj \li0\ri720\nowidctlpar\faauto\rin720\lin0\itap0\pararsid4872922 {\insrsid4872922 
\par }\pard \qj \li720\ri720\nowidctlpar\faauto\rin720\lin720\itap0\pararsid4872922 {\insrsid10645010\charrsid4872922 [o]ne million three hundred thousand do
llars ($1,300,000), which shall be paid to the Company in respect of costs and expenses of the Company for the period from and after January 1, 1993, in connection with the development of the Facility; }{\ul\insrsid10645010\charrsid4872922 
provided, however}{\insrsid10645010\charrsid4872922 , that the Phase II Development Costs
 shall be subject to adjustment (i) if, within ninety (90) days following the Contract Date, the Government has not delivered to the Company either evidence of Legislative Approval or an unqualified opinion of nationally recognized bond counsel for the Go
v
ernment to the effect that no Legislative Approval is required for the execution, delivery and performance by the Government of its obligations hereunder . . . . Phase II Development Costs shall not be subject to Cost Substantiation and, unless otherwise 
agreed by the parties, shall not be subject to increase or reduction based upon actual costs incurred by the Company.
\par }\pard \qj \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid4872922 {\insrsid10645010\charrsid4872922 
\par Record on Appeal, tab 34, Ex. A, pp. 43-44 (1996 Agreement).}{\insrsid4872922  }{\insrsid10645010\charrsid4872922 Defeasance Cost is defined as follows:}{\insrsid10645010 
\par }{\insrsid4872922\charrsid4872922 
\par }\pard \qj \li720\ri720\nowidctlpar\faauto\rin720\lin720\itap0\pararsid4872922 {\insrsid10645010\charrsid4872922 [A]s of any calculation date, an amou
nt sufficient to defease and discharge all outstanding Bonds in accordance with their terms, together with all related costs of defeasance and repayment, after giving effect to the release of any reserve funds or insurance proceeds which are made availabl
e for such purpose under the Indenture in connection with such defeasance, }{\ul\insrsid10645010\charrsid4872922 plus}{\insrsid10645010\charrsid4872922 
 an amount equal to all outstanding Equity and all return thereon provided for under this Agreement accrued but unpaid as of such calculation date.}{\insrsid4872922  }{\insrsid10645010\charrsid4872922 
\par }\pard \qj \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid4872922 {\insrsid10645010\charrsid4872922 
\par Record on Appeal, tab 34, Ex. A, pp. 15-16 (1996 Agreement).}{\insrsid4872922  }{\insrsid10645010\charrsid4872922 License Defeasance Cost means:}{\insrsid10645010 
\par }{\insrsid4872922\charrsid4872922 
\par }\pard \qj \li720\ri720\nowidctlpar\faauto\rin720\lin720\itap0\pararsid4872922 {\insrsid10645010\charrsid4872922 
[A]s of any calculation date (a) if such calculation date is prior to the Acceptance Date, the product of Three hundred thousand dollars ($300,000) times the number of years (including any p
artial year) prior to the year 2013, or (b) if such calculation date is on or after the Acceptance Date, the Fair Facility Value }{\ul\insrsid10645010\charrsid4872922 less}{\insrsid10645010\charrsid4872922  the Defeasance Cost. . . . 
\par }\pard \qj \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid4872922 {\insrsid10645010\charrsid4872922 
\par Record on Appeal, tab 34, Ex. A, p. 35 (1996 Agreement).}{\insrsid4872922  }{\insrsid10645010\charrsid4872922 
\par }{\b\insrsid4872922 
\par }{\b\insrsid10645010\charrsid4872922 [22]}{\insrsid10645010\charrsid4872922 \tab The Legislature undisputedly has not appropriated funds for the 1996 Agreement.}{\insrsid4872922  }{\insrsid10645010\charrsid4872922 Contrary to the lower court}{
\insrsid10645010\charrsid4872922 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid10645010\charrsid4872922 
s holding, a thorough examination of the contractual provisions quoted at length indicate that the 1996 Agreement 
attempts to improperly divest the Legislature of its authority to appropriate funds by obligating the Government to pay GRRP a certain sum of costs as defined in the agreement, in the event that requisite legislative approval is not obtained in the first 
instance. }{\i\insrsid10645010\charrsid4872922 See}{\insrsid10645010\charrsid4872922  1996 Agreement, Sections 4.03 and 4.04.}{\insrsid4872922  }{\insrsid10645010\charrsid4872922 Appellees}{\insrsid10645010\charrsid4872922 {\field{\*\fldinst SYMBOL
 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid10645010\charrsid4872922  representation of the validity of the 1996 Agreement as being completely dependant upon legislative approval contradicts any reasonable interpreta
tion of the terms of the contract.}{\insrsid4872922  }{\insrsid10645010\charrsid4872922 In fact, the 1996 Agreement improperly }{\insrsid10645010\charrsid4872922 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{
\insrsid10645010\charrsid4872922 set[s]}{\insrsid4872922  }{\insrsid10645010\charrsid4872922 apart from the public revenue a certain sum of money for a specified object,}{\insrsid10645010\charrsid4872922 {\field{\*\fldinst SYMBOL 64 \\f 
"WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid10645010\charrsid4872922  which is in effect, an appropriation.}{\insrsid4872922  }{\i\insrsid10645010\charrsid4872922 In re Request of Gutierrez}{\insrsid10645010\charrsid4872922 
, 2002 Guam 1 at }{\insrsid10645010\charrsid4872922 {\field{\*\fldinst SYMBOL 38 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid10645010\charrsid4872922  38.}{\insrsid4872922  }{\insrsid10645010\charrsid4872922 
As a result, the court finds that the 1996 Agreement is in violation of 48 U.S.C. }{\insrsid10645010\charrsid4872922 {\field{\*\fldinst SYMBOL 39 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid10645010\charrsid4872922  
1423j, which reserves for the Legislature the plenary authority to appropriate funds.}{\insrsid10645010 
\par }{\insrsid4872922\charrsid4872922 
\par }{\b\insrsid10645010\charrsid4872922 [23]}{\insrsid10645010\charrsid4872922 \tab Furthermore, we find the 1996 Agreement to be in violation of 5 GCA }{\insrsid10645010\charrsid4872922 {\field{\*\fldinst SYMBOL 39 \\f "WP TypographicSymbols"
 \\s 12}{\fldrslt\f36\fs24}}}{\insrsid10645010\charrsid4872922 22401.}{\insrsid4872922  }{\insrsid10645010\charrsid4872922 Under the terms of the 1996 Agr
eement, the Government is exposed to a potential liability in the amount of millions of dollars, if, through its own fault, certain conditions required of it by the contract are not met, one of which, incidentally, includes legislative approval.}{
\insrsid4872922  }{\insrsid10645010\charrsid4872922 The Governor of Guam, }{\i\insrsid10645010\charrsid4872922 in advance of the appropriation made}{\insrsid10645010\charrsid4872922 
 for the purpose of the 1996 Agreement, entered into the agreement and thereby }{\i\insrsid10645010\charrsid4872922 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\i\insrsid10645010\charrsid4872922 involv[ed]}{
\insrsid10645010\charrsid4872922  the government of Guam in a contract or obligation for the}{\i\insrsid10645010\charrsid4872922  payment of money}{\insrsid10645010\charrsid4872922 .}{\insrsid10645010\charrsid4872922 {\field{\*\fldinst SYMBOL 64 \\f 
"WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid4872922  }{\insrsid10645010\charrsid4872922 5 GCA }{\insrsid10645010\charrsid4872922 {\field{\*\fldinst SYMBOL 39 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{
\insrsid10645010\charrsid4872922 22401(a)(3) (emphasis added).}{\insrsid4872922  }{\insrsid10645010\charrsid4872922 Such an action constitutes an }{\insrsid10645010\charrsid4872922 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt
\f36\fs24}}}{\insrsid10645010\charrsid4872922 illegal expenditure.}{\insrsid10645010\charrsid4872922 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid10645010\charrsid4872922  5 GCA }{
\insrsid10645010\charrsid4872922 {\field{\*\fldinst SYMBOL 39 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid10645010\charrsid4872922 22401 (quoting title).
\par }{\b\insrsid4872922 
\par }{\b\insrsid10645010\charrsid4872922 [24]}{\insrsid10645010\charrsid4872922 \tab Certainly, we do not attempt to limit the executive branch}{\insrsid10645010\charrsid4872922 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt
\f36\fs24}}}{\insrsid10645010\charrsid4872922 s prerogative in administering the expenditure of funds which }{\i\insrsid10645010\charrsid4872922 are}{\insrsid10645010\charrsid4872922  appropriated.}{\insrsid4872922  }{\insrsid10645010\charrsid4872922 
However, where the Governor involves the Government in a contract for the payment of money, without the requisite legislative approval for such contract, the Governor acts so without authority.}{\insrsid4872922  }{\i\insrsid10645010\charrsid4872922 See}{
\insrsid10645010\charrsid4872922  }{\i\insrsid10645010\charrsid4872922 Cray Research, Inc. v. United States}{\insrsid10645010\charrsid4872922 , 44 Fed. Cl. 327, 333}{\insrsid4872922  }{\insrsid10645010\charrsid4872922 
(1999) (finding that the contracting officer was without authority to contract}{\insrsid4872922  in advance of appropriations).}{\insrsid10645010 
\par }{\insrsid4872922\charrsid4872922 
\par }{\b\insrsid10645010\charrsid4872922 [25]}{\insrsid10645010\charrsid4872922 \tab As a result of a violation of 48 U.S.C. }{\insrsid10645010\charrsid4872922 {\field{\*\fldinst SYMBOL 39 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{
\insrsid10645010\charrsid4872922  1423j and 5 GCA }{\insrsid10645010\charrsid4872922 {\field{\*\fldinst SYMBOL 39 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid10645010\charrsid4872922 22401, we find the 1996 Agreement to be a nullity.}
{\insrsid4872922  }{\insrsid10645010\charrsid4872922 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid10645010\charrsid4872922 
If contracts violative of statutory prohibitions may be executed by government agencies and subsequently enforced, the power of the legislature and the processes of government itself would be undermined.}{\insrsid10645010\charrsid4872922 
{\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid4872922  }{\i\insrsid10645010\charrsid4872922 Heyl & Patterson Int}{\i\insrsid10645010\charrsid4872922 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols"
 \\s 12}{\fldrslt\f36\fs24}}}{\i\insrsid10645010\charrsid4872922 l v. Rich Housing of Virgin Islands, Inc.}{\insrsid10645010\charrsid4872922 , 663 F.2d 419, 432 (3d}{\insrsid4872922  }{\insrsid10645010\charrsid4872922 Cir. 1981).}{\insrsid4872922  }{
\i\insrsid10645010\charrsid4872922 See also Robert F. Simmons and Assocs. v. United States}{\insrsid10645010\charrsid4872922 , 360 F.2d 962, 965 (Ct. Cl. 1966) (}{\insrsid10645010\charrsid4872922 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols"
 \\s 12}{\fldrslt\f36\fs24}}}{\insrsid10645010\charrsid4872922 It is settled law that an agency of the Government cannot create a bind
ing contract without the authority of an appropriation of funds from the Congress to cover the contract. If such an unauthorized contract is entered into, it is a nullity.}{\insrsid10645010\charrsid4872922 {\field{\*\fldinst SYMBOL 64 \\f 
"WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid10645010\charrsid4872922 ); }{\i\insrsid10645010\charrsid4872922 Hooe v. United States}{\insrsid10645010\charrsid4872922 , 218 U.S. 322, 334, 31 S. Ct. 85, 88 (1910) (}{
\insrsid10645010\charrsid4872922 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid10645010\charrsid4872922 
If an officer, upon his own responsibility, and without the authority of Congress, assumes to bind the government, by express or implied contract, to pay a sum in excess of that lim
ited by Congress for the purposes of such a contract, the contract is a nullity, so far as the government is concerned, and no legal obligation arises upon its part to meet its provisions.}{\insrsid10645010\charrsid4872922 {\field{\*\fldinst SYMBOL
 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid10645010\charrsid4872922 ).}{\insrsid4872922  }{\i\insrsid10645010\charrsid4872922 Cray Research, Inc., }{\insrsid10645010\charrsid4872922 
44 Fed. Cl. at 333 (holding that where the contracting officer was without authority to contract in advance of appropriations, the Government }{\insrsid10645010\charrsid4872922 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt
\f36\fs24}}}{\insrsid10645010\charrsid4872922 would not be bound . . . because the government is not bound by the unauthorized acts of its agents.}{\insrsid10645010\charrsid4872922 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt
\f36\fs24}}}{\insrsid10645010\charrsid4872922 ).
\par }{\b\insrsid4872922 
\par }{\b\insrsid10645010\charrsid4872922 [26]}{\insrsid10645010\charrsid4872922 \tab Our holding that the 1996 Agreement is null and void renders unnecessary the disposition of the remaining issues on appeal.
\par 
\par }\pard \qc \li0\ri0\nowidctlpar\tqc\tx4680\faauto\rin0\lin0\itap0\pararsid4872922 {\b\insrsid10645010\charrsid4872922 VI.}{\insrsid10645010\charrsid4872922 
\par }\pard \qj \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid4872922 {\b\insrsid4872922 
\par }{\b\insrsid10645010\charrsid4872922 [27]}{\insrsid10645010\charrsid4872922 \tab The 1996 Agreement is null and void as a violation of Title 48 U.S.C. }{\insrsid10645010\charrsid4872922 {\field{\*\fldinst SYMBOL 39 \\f "WP TypographicSymbols"
 \\s 12}{\fldrslt\f36\fs24}}}{\insrsid10645010\charrsid4872922  1423j and Title 5 GCA }{\insrsid10645010\charrsid4872922 {\field{\*\fldinst SYMBOL 39 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid10645010\charrsid4872922 22401.}{
\insrsid4872922  }{\insrsid10645010\charrsid4872922 We }{\b\insrsid10645010\charrsid4872922 REVERSE }{\insrsid10645010\charrsid4872922 the judgment of the lower court and }{\b\insrsid10645010\charrsid4872922 REMAND}{\insrsid10645010\charrsid4872922 
 for entry of judgment consistent with this Opinion.
\par }}