Koror, Palau – The Palau Court of Appeals has affirmed a lower court ruling, siding with the Koror State Government and a co-administrator, Benedicta Kebekol, in a dispute over a submerged land lease.
The case centered on a lease amendment signed by the Koror State government and Benedicta Kebekol, one of the estate administrators of the deceased leaseholder George Kebekol, bypassing the other co-administrator, Tikei Kebekol.
Tikei Kebekol, representing the estate of George Kebekol Alfonso, argued that the amendment breached the original lease agreement and the implied covenant of good faith and fair dealing. She also alleged intentional interference with the contract by the co-administrator, Benedicta Kebekol.
However, the Court of Appeals found that the amendment, which delayed rent payments and confirmed the estate as the successor lessee, did not constitute a breach of contract. They further stated that accepting Benedicta’s signature was not improper and that the government did not act in bad faith.
Neither Benedicta nor KSG breached any of the terms of the submerged lease, the court wrote in its opinion and Tikei failed to meet her burden to prove a breach of contract.
The court also dismissed claims of intentional interference and found that the lower court had not erred in handling the case.