StarKist Working On Compromise To Leave Samoan Coldstore ff

Source: Samoa News

StarKist Samoa has withdrawn its motion for reconsideration of a November decision by the High Court to return to the American Samoa Power Authority (ASPA) land at Satala leased by the cannery from ASPA. 

A hearing in the StarKist motion filed last month was set for last week Thursday but attorney David Vargas, with the law firm of Rose Joneson Vargas, who appeared on behalf of StarKist told the judges that the cannery has withdrawn the reconsideration motion but didn’t elaborate further in open court. 

Vargas decline to comment on the case when asked last Thursday and there has been no clear indication from the cannery as to the impact of the court decision on its operation. 

Samoa News understands that both sides have reached a compromise in the matter and are now working on a smooth transition for StarKist to leave the 1.024 acres of land that ASPA wants to use for building a new power plant to replace the one destroyed by the Sept. 29, 2009 earthquake-generated tsunami. 

StarKist leased the property in March 2000 and the cannery built a cold-storage facility there. The lease was for nine years and the cannery had the option to renew the lease, provided StarKist notified ASPA in writing of its intent to renew at least 90 days before expiration of the initial lease term.

However, StarKist failed to give ASPA written notice to renew the lease, which expired Feb. 28, 2009, and ASPA made a demand for possession in writing, serving the written demand on StarKist around Aug. 10, 2010. A trial court ruled in November that in accordance with local statute, “ASPA is entitled to judgment for possession of the premises” and “ASPA is entitled to the issuance of a writ of possession restoring the premises unto ASPA.”

Mary Sestric, StarKist Co. spokesperson based in the U.S. said in November that “per Company policy, we do not publicly discuss legal matters” and declined to comment on the impact of the court’s decision on cannery operations in the territory.

An industry source had told Samoa News in November that StarKist cold storage facility is a key component to “loin processing” for the cannery and this eviction will definitely have an impact on its continued presence in the Territory.