Judgment for Jackson Henry over Besure Kanai
Court says Kanai liable to pay $1M promissory note, ruled in favor of Henry’s claims
by Leilani Reklai
November 5, 2021
Court finally resolved a decade-old contention ruling in favor of Jackson Henry’s claims against Besure Kanai on a real estate deal that went wrong over a decade ago. The court ruled that Besure Kanai has to pay a promissory note of 1 million dollars plus reasonable attorney’s fees, interests, and damages requested by Jackson Henry and denied Kanai’s requested relief.
The civil case was brought against Besure and Victoria Kanai by plaintiff Jackson Henry claiming breach of contract, indemnification, unjust enrichment, fraud, and return of $500,000 received by Mrs. Kanai from lease proceeds of Besure’s lease to Babeldaob Resort Development (“BRD”).
In the claim, it said that Jackson Henry was contracted as a land broker for Besure Kanai, to seek investors for his land in Choll, Ngaraard. After finding a potential lessee, BRD, it was found that Kanai’s land was already subleased to Japanese investor Mutou Shizushi. To lease the land to BRD, attempts were made to have Mr. Shizushi release his lease.
The trial showed that Jackson Henry was authorized by Mr. Kanai to offer a promissory note of one million ($1 million) dollars to Shizushi to release his lease. Mr. Henry executed the promissory note and Mr. Shizushi released his lease.
Records that came out of the trial revealed that as a result of Mr. Shizushi releasing his lease on Besure’s land, Besure was able to lease it to BRD for $1.5 million. After receiving the money for the lease, according to records and testimonies, Besure did not pay the $1 million promissory note and rather spend the $1.3 million within a year. He transferred $500,000 of that to his wife and it was reported to have been spent as well.
According to Besure’s testimony at court, he said that Mr. Henry lied to him saying that the promissory note was not to be sent to Mr. Shizushi but rather only to be used to “impress the investors” for them to stay and lease the land.
The court stated that this and other arguments presented by Mr. Kanai contradicted documents and previous testimonies and depositions that he had made.
Mr. Kanai was able to enjoy the benefits of the lease of his land because of the promissory note made by his broker. Mr. Shizushi complied with his part of the agreement by releasing his lease but Mr. Kanai did not by refusing to honor the promissory note, stated the court ruling.
In addition, other parties, Masaichi Etiterngel and George Kebekol who also got into a Brokerage Agreement with Jackson Henry and Besure Kanai to help broker the lease, were not paid their commission as agreed and Mr. Jackson paid their commission out of his pocket of little over $50k.
Court also ruled that they were entitled under the contract and that as relief, Mr. Jackson should also be reimbursed for the money he paid to Masaichi and George that Besure failed to pay according to the brokerage contract.
The court upheld Jackson Henry’s claims brought forth in this case and denied Besure Kanai’s claims.
https://islandtimes.org/court-says-kanai-liable-to-pay-1m-promissory-note-ruled-in-favor-of-henrys-claims/
by Leilani Reklai
November 5, 2021
Court finally resolved a decade-old contention ruling in favor of Jackson Henry’s claims against Besure Kanai on a real estate deal that went wrong over a decade ago. The court ruled that Besure Kanai has to pay a promissory note of 1 million dollars plus reasonable attorney’s fees, interests, and damages requested by Jackson Henry and denied Kanai’s requested relief.
The civil case was brought against Besure and Victoria Kanai by plaintiff Jackson Henry claiming breach of contract, indemnification, unjust enrichment, fraud, and return of $500,000 received by Mrs. Kanai from lease proceeds of Besure’s lease to Babeldaob Resort Development (“BRD”).
In the claim, it said that Jackson Henry was contracted as a land broker for Besure Kanai, to seek investors for his land in Choll, Ngaraard. After finding a potential lessee, BRD, it was found that Kanai’s land was already subleased to Japanese investor Mutou Shizushi. To lease the land to BRD, attempts were made to have Mr. Shizushi release his lease.
The trial showed that Jackson Henry was authorized by Mr. Kanai to offer a promissory note of one million ($1 million) dollars to Shizushi to release his lease. Mr. Henry executed the promissory note and Mr. Shizushi released his lease.
Records that came out of the trial revealed that as a result of Mr. Shizushi releasing his lease on Besure’s land, Besure was able to lease it to BRD for $1.5 million. After receiving the money for the lease, according to records and testimonies, Besure did not pay the $1 million promissory note and rather spend the $1.3 million within a year. He transferred $500,000 of that to his wife and it was reported to have been spent as well.
According to Besure’s testimony at court, he said that Mr. Henry lied to him saying that the promissory note was not to be sent to Mr. Shizushi but rather only to be used to “impress the investors” for them to stay and lease the land.
The court stated that this and other arguments presented by Mr. Kanai contradicted documents and previous testimonies and depositions that he had made.
Mr. Kanai was able to enjoy the benefits of the lease of his land because of the promissory note made by his broker. Mr. Shizushi complied with his part of the agreement by releasing his lease but Mr. Kanai did not by refusing to honor the promissory note, stated the court ruling.
In addition, other parties, Masaichi Etiterngel and George Kebekol who also got into a Brokerage Agreement with Jackson Henry and Besure Kanai to help broker the lease, were not paid their commission as agreed and Mr. Jackson paid their commission out of his pocket of little over $50k.
Court also ruled that they were entitled under the contract and that as relief, Mr. Jackson should also be reimbursed for the money he paid to Masaichi and George that Besure failed to pay according to the brokerage contract.
The court upheld Jackson Henry’s claims brought forth in this case and denied Besure Kanai’s claims.
https://islandtimes.org/court-says-kanai-liable-to-pay-1m-promissory-note-ruled-in-favor-of-henrys-claims/