The Supreme Court of Guam has turned down the appeal of Basil Food Industrial Services Corporation regarding the termination of its contracts with the General Services Agency to provide meals to Guam’s elderly residents.
Basil appealed a Superior Court of Guam ruling affirming the Office of Public Accountability’s administrative decision to uphold the termination of Basil’s contract.
Basil filed an appeal with the OPA requesting that the termination be rescinded because Basil had purportedly “cured default” under the contracts.
But the OPA denied the appeal, finding that GSA’s termination of the contracts with Basil was valid and permissible. The Superior Court affirmed the OPA decision, finding that the termination was valid because Basil breached the contracts, and that GSA did not have to allow Basil an opportunity to cure.
In affirming the Superior Court, the Supreme Court held that both the Public Auditor and the Superior Court correctly interpreted the contract in finding that GSA’s termination under Section 12.9 did not require that GSA provide Basil an opportunity to cure its defect.
Accordingly, the Guam Supreme Court held that the OPA’s decision was not arbitrary or capricious.