Sablan v. CUC
CourtSupreme Court of The Commonwealth of The Northern Mariana Islands
Date FiledJune 30, 2026
Docket2024-SCC-0023-CIV
JudgeCastro
StatusPublished
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Full Opinion
E-FILED
CNMI SUPREME COURT
E-filed: Jun 30 2026 05:29PM
Clerk Review: Jun 30 2026 05:29PM
Filing ID: 79907563
Case No.: 2024-SCC-0023-CIV
Judy Aldan
IN THE
Supreme Court
OF THE
Commonwealth of the Northern Mariana Islands
CONRAD M. SABLAN,
Plaintiff-Appellant, Cross-Appellee,
v.
COMMONWEALTH UTILITIES CORPORATION,
Defendant-Appellee, Cross-Appellant,
AND
COMMONWEALTH OF THE NORTHERN MARIANA ISLANDS,
Defendant-Appellee.
Supreme Court No. 2024-SCC-0023-CIV
SLIP OPINION
Cite as: 2026 MP 5
Decided June 30, 2026
CHIEF JUSTICE ALEXANDRO C. CASTRO
ASSOCIATE JUSTICE JOHN A. MANGLOÑA
ASSOCIATE JUSTICE ROBERTO C. NARAJA
Superior Court No. 15-0175-CV
Presiding Judge Joseph N. Camacho, Presiding
Sablan v. CUC, 2026 MP 5
CASTRO, C.J.:
¶1 Conrad M. Sablan (“Conrad”) appeals, and the Commonwealth Utilities
Corporation (“CUC”) cross-appeals, the Superior Court’s decisions in this
inverse condemnation case arising from the construction and operation of the
Maui IV Water Tank and Pump Station (“Maui IV facility”) on the Sablan’s
family land. The Superior Court found a compensable physical taking and
awarded Conrad approximately $2.1 million in compensation and prejudgment
interest. We AFFIRM in part, REVERSE in part, and REMAND with specific
instructions on valuation methodology.
I. FACTS AND PROCEDURAL HISTORY
¶2 In 1980, the Marianas Public Land Corporation conveyed by quitclaim
deed Tract 22654, a 20,672-square-meter parcel in Sadog Tasi, Saipan, to Vicente
S. Sablan (“Vicente”). The tract included a reserved right-of-way along its
western edge. This right-of-way ran between a small triangular section and the
larger remainder of the property.
¶3 Vicente died in August 1988, and his estate was promptly administered in
probate. In May 1990, the Superior Court issued a decree distributing undivided
interests in a portion of Tract 22654 to his widow, Maria Sablan, and their sons,
Conrad, Tito Sablan, and Vicente M. Sablan.
¶4 In 1991, CUC, in coordination with the Commonwealth government,
entered the property and began constructing the Maui IV facility for a public
water project. Construction concluded on March 31, 1992. A one-million-gallon
concrete tank, pump house, and chain-link fence occupy approximately 1,029
square meters of the western section of the tract. The chain link fence blocked
public access through Laguna Drive to the triangular section of the property but
the property could still be accessed from the larger section of the property by
going around the Maui IV facility.
¶5 Conrad visited the completed facility in 1992 and observed the tank and
fence. At that time no survey had been conducted to determine whether the
structure lay within the boundaries of the 1991 co-owners’ land or on an adjacent
public right-of-way. No compensation was ever offered or paid.
¶6 In 2013, Conrad commissioned Takai & Associates to conduct an as-built
survey and subdivide the property to establish separate ownership boundaries
among the heirs. The survey established the Maui IV facility occupied a portion
of the 1991 co-owners’ land. The survey divided Tract 22654 into four parcels:
• Tract 22654-1 (small triangular parcel along the western edge);
• Tract 22654-R1, later subdivided;
• Tract 22654-2; and
• Tract 22654-3.
¶7 In November 2013, Maria, Tito, and Vicente M. Sablan executed a Deed
of Conveyance and a later Confirmation Deed transferring their interests in Tract
22654-1 and Tract 22654-R1 to Conrad. The deeds conveyed “all rights, title, and
Sablan v. CUC, 2026 MP 5
interests” in those parcels. App. at 1337–38. The confirmation deed additionally
conveyed all “claims” in the properties as well. Id. at 1339–40. In January 2014,
Tract 22654-R1 was further divided into Tract 22654-R2, which contained the
Maui IV facility, and Tract 22654-4. The two lots at issue in this appeal are Tract
22654-1 and Tract 22654-R2.
¶8 In October 2015, Conrad sued CUC and the Commonwealth for inverse
condemnation, trespass, and unjust enrichment. He claimed the 1991
construction and continued operation of the Maui IV facility permanently
occupied his land without compensation and that the chain-link fence blocked his
only access route to Tract 22654-1, rendering it landlocked. Conrad later
dismissed his trespass claim.
¶9 The defendants denied liability on multiple grounds. CUC argued (1) the
claim was time-barred under the statute of limitations, (2) it could not be held
liable for inverse condemnation because it lacked statutory eminent domain
authority, and (3) any compensation owed belonged to the four co-owners who
held the property at the time of the 1991 taking, not to Conrad alone. The
Commonwealth joined those positions. As an affirmative defense, CUC also
argued it gained title to the land through adverse possession.
¶ 10 The trial court tried the case in two phases. The first phase, addressing
whether a taking had occurred, was heard over multiple sessions between August
2019 and June 2020. On June 17, 2020, the court issued its Order After Trial
closing the first phase on liability while reserving the issue of prejudgment
interest for further proceedings. In September 2022, the court issued its First
Order, holding that the government's occupation of Tract 22654 constituted a
compensable physical taking under Article XIII, Section 2 of the NMI
Constitution. The court further held that the statute of limitations does not bar
inverse condemnation actions, that CUC could be held liable despite lacking
eminent domain authority, and that the right to compensation vested in the four
co-owners at the time of the 1991 taking. The court also found that Tract 22654-
1 was not taken, because the parcel only became landlocked due to the 2013
subdivision rather than through any government action. The court rejected CUC’s
adverse possession defense.
¶ 11 The second phase addressed compensation. Conrad’s appraiser, valued the
occupied parcel at $367,000 using the sales-comparison method applied to Tract
22654-R2 as if it had existed in 1991 as a standalone parcel. CUC’s appraiser
testified that the correct approach for a partial taking was the before-and-after
method applied to the entire 1991 tract, though he acknowledged the sales-
comparison method would be appropriate if the entire parcel had been taken. The
court adopted Conrad’s appraiser’s valuation using the sales-comparison
methodology.
¶ 12 Conrad’s financial expert proposed a prejudgment interest rate of 8.6674
percent calibrated to Conrad’s personal investor profile. The Commonwealth
proposed the Moody’s Aaa Corporate Bond Index rate of 5.341 percent. The
court rejected Campbell’s rate as methodologically unreliable because it was
Sablan v. CUC, 2026 MP 5
tailored to Conrad’s individual circumstances and instead adopted the Moody’s
Aaa Corporate Bond Index rate. The court entered final judgment awarding
Conrad approximately $2,106,366.97 in compensation and prejudgment interest.
¶ 13 Conrad appealed, arguing that the Superior Court erred by: (1) rejecting
his expert’s higher prejudgment interest rate of 8.6674 percent; (2) holding the
1991 co-owners retained ownership interests in the compensation award despite
their 2013 conveyances of all rights, title, interests, and claims to him; and (3)
finding no compensable taking of Tract 22654-1 when the government’s fence
blocked his only access route to that parcel.
¶ 14 CUC cross-appealed, contending the Superior Court erred in: (1) holding:
the statute of limitations does not apply to inverse condemnation claims; (2)
holding CUC can be liable for inverse condemnation despite lacking statutory
eminent domain authority; (3) abusing its discretion by reopening the evidentiary
record sua sponte after the parties had rested; and (4) adopting Sablan’s expert’s
sales-comparison valuation methodology. The Commonwealth joins CUC’s
position on the merits but has not filed a separate cross-appeal.
II. JURISDICTION
¶ 15 The Supreme Court has appellate jurisdiction over final judgments and
orders of the Superior Court of the Commonwealth. 1 CMC § 3102(a); NMI
CONST. art. IV, § 3.
III. ISSUES ON APPEAL AND STANDARD OF REVIEW
¶ 16 This appeal presents seven issues, each subject to the following standard
of review:
1. Whether the statute of limitations bars the inverse condemnation claim,
which presents a question of statutory and constitutional interpretation
reviewed de novo. In re Estate of Kapileo, 2026 MP 2 ¶ 12.
2. Whether CUC is subject to inverse condemnation liability under Article
XIII of the NMI Constitution, a question of law reviewed de novo. Id.
3. Whether the trial court abused its discretion in permitting additional
proceedings following the liability phase of trial. See Ito v. Macro Energy,
Inc., 4 NMI 46, 61 (1993) (holding the trial court’s control over timing of
trial is reviewed on abuse of discretion); Olopai v. Fitial, 3 NMI 101, 108
(1992) (describing reopening a case as within the discretion of the trial
court).
4. Whether a taking occurred as to Tract 22654-1, a mixed question of law
and fact. The trial court’s factual findings regarding the condition of the
property at the time of the taking are reviewed for clear error. See Santos
v. Santos, 2000 MP 9 ¶ 3 (holding a trial court’s findings of fact in a mixed
question of law and fact are “still reviewed for clear error”). The legal
conclusion that a taking occurred is reviewed de novo. Castro v. Castro,
2009 MP 8 ¶ 11.
5. Whether Conrad was solely entitled to just compensation, a question of
law reviewed de novo. Id.; Isla Dev. Prop. v. Jang, 2017 MP 13 ¶ 6.
6. Whether the prejudgment interest rate was calculated correctly, a mixed
question of fact and law. Estate of Muna v. Commonwealth, 2007 MP 16
¶ 7. The rule of law used to determine the rate is reviewed de novo, and
Sablan v. CUC, 2026 MP 5
the determination of a reasonable rate of interest is a factual finding
reviewed for clear error. Id.
7. Whether the proper valuation methodology was applied to the taking, a
question of law reviewed de novo. See id.
IV. DISCUSSION
¶ 17 We affirm the decisions on five of the issues but find reversable error with
regards to whether Conrad has the sole right to compensation for the taking and
whether the proper valuation methodology was used.
A. The Inverse Condemnation Claim Was Filed Within the Statute of
Limitations
¶ 18 The trial court concluded that statutes of limitation categorically do not
apply to inverse condemnation claims because neither the Fifth Amendment nor
Article XIII of the NMI Constitution contains express limitations language. We
disagree with that reasoning. Constitutional claims are not exempt from ordinary
procedural rules. Nevertheless, we affirm the denial of CUC’s statute of
limitations defense because Conrad’s claim was filed within the applicable
limitations period.
1. Inverse Condemnation Claims Are Subject to Statute of Limitation
¶ 19 The Takings Clause of the Fifth Amendment and Article XIII, Section 2 of
the NMI Constitution guarantee private property may not be taken for public use
without just compensation. U.S. CONST. amend. V; NMI CONST. art. XIII, § 2.
But a cause of action originating from the Constitution does not eliminate the
legislature’s authority to place procedural limits on when that right must be
asserted.
¶ 20 The Taking Clause of the Fifth Amendment is subject to the statute of
limitations. In John R. Sand & Gravel Co. v. United States, the United States
Supreme Court enforced a six-year statute of limitations applicable to takings
claims in the Court of Federal Claims even though the government had
effectively waived the defense. 552 U.S. 130, 133–35 (2008). The decision
explained some statutes of limitations serve broader systemic purposes beyond
protecting defendants from stale claims, including defining the scope of a
governmental waiver of sovereign immunity. Id. at 133–34.
¶ 21 With regards to the claim under the NMI Constitution, we have previously
addressed a similar argument in the due process context. Estate of Rogolifoi v.
Estate of Rogolifoi, 2024 MP 4 ¶ 41. We found the 7 CMC § 2502(a)(2) statute
of limitations to bar a due process challenge to a decades-old Trust Territory title
determination, emphasizing that “[t]he statute of limitations provides no
exceptions to its enforcement.” Id.
¶ 22 Persuasive state authority likewise treats inverse condemnation claims as
subject to ordinary statutes of limitations. In DW Aina Le‘a Development, LLC v.
State, the Hawaii Supreme Court applied a six-year statute of limitations to a
regulatory takings claim brought directly under the Hawaii Constitution. 477 P.3d
836, 847 (Haw. 2020). The Takings Clause created a directly enforceable right
Sablan v. CUC, 2026 MP 5
and the claim therefore arose directly from the constitution rather than from
statute. Id. at 843–45. Even so, the court concluded the constitutional source of
the claim did not exempt it from legislatively imposed filing deadlines. Id. at
846–47.
¶ 23 We therefore hold inverse condemnation claims in the Commonwealth are
subject to the applicable statute of limitations. Neither the constitutional source
of the right nor the nature of the remedy creates a categorical exemption from
legislatively imposed deadlines. The trial court erred in concluding otherwise.
2. Conrad’s Claim Accrued in 2013 and Was Timely Filed
¶ 24 The land was taken in 1991 when CUC began building the Maui IV
facility. See Knick v. Twp. of Scott, 588 U.S. 180, 189 (2019) (recognizing claim
may be brought immediately upon taking); Estate of Muna, 2007 MP 16 ¶ 17
(determining valuation from “actual time of the physical taking as well as the
time of payment for the taking”). However, this does not resolve the question of
when Conrad’s claim accrued. This Court has not previously articulated an
accrual standard for inverse condemnation claims.
¶ 25 Federal takings jurisprudence provides a useful framework. A takings
claim accrues when “all events which fix the government's alleged liability have
occurred and the plaintiff was or should have been aware of their existence.”
Boling v. United States, 220 F.3d 1365, 1370 (Fed. Cir. 2000) (quoting Hopland
Band of Pomo Indians v. United States, 855 F.2d 1573, 1577 (Fed. Cir. 1988)).
In the specific physical-taking context, accrual requires that two conditions be
satisfied: the scope of the occupation must be fixed and ascertainable, and the
plaintiff must have known or reasonably should have known that the occupation
extended onto his property. Katzin v. United States, 908 F.3d 1350, 1358 (Fed.
Cir. 2018). Both conditions serve the same underlying purpose of ensuring that a
landowner is not required to file suit before he can reasonably know what has
been taken and whether it affects his land. We adopt that standard here.
¶ 26 Whether a landowner knew or reasonably should have known that a
government occupation extended onto his property is a factual question that
varies with the circumstances of each case. Boling, 220 F.3d at 1373. For
example, determining whether the government’s actions caused erosion to effect
a taking requires an inquiry into the physical characteristics of the land, the nature
and visibility of the government's occupation, and the information reasonably
available to the landowner at the relevant time. See id. (“[T]he fact-finder should
take into account the uncertainties of the terrain, the difficulty in determining the
location of the government's easement, and the irregular progress of erosion”).
¶ 27 CUC argues the claim accrued in 1992 because Conrad admittedly knew
the Maui IV facility existed when construction concluded. See Cattellus Dev.
Corp v. United States, 31 Fed. Cl. 399, 406–07 (Fed. Cl. 1994) (discussing how
this rule applies when the invasion is obvious, ascertainable, and permanent). But
awareness of a nearby public project is not equivalent to knowledge that the
project encroaches onto one's own parcel. CUC's argument conflates knowledge
Sablan v. CUC, 2026 MP 5
of the government's physical presence in the area with knowledge that the
occupation extended onto Conrad’s land.
¶ 28 In the Commonwealth, parcel boundaries are often not ascertainable
through visual observation alone. Many CNMI parcels received title
determinations without actual boundary surveys, leaving precise boundary lines
unresolved on the ground. 1 Even where surveys existed, they often described
adjacent parcels or right-of-way corridors rather than the landowner's parcel
itself, leaving its precise boundaries unresolved until a dedicated survey was
commissioned. See Aguon v. Marianas Pub. Land Corp., 2001 MP 4 ¶¶ 7–10
(showing boundary discrepancy in Commonwealth homestead property was only
discovered after landowner commissioned a survey decades after receiving title).
¶ 29 No dedicated boundary survey of Tract 22654 existed before 2013. The
only pre-2013 survey involving the area surrounding Tract 22654 was a February
1990 Meridian Land Surveying Parceling Plat of adjacent public right-of-way
tracts 21709 and 21710, prepared for the Marianas Public Land Corporation,
rather than as a boundary survey of Tract 22654 itself. The plat depicted Tract
22654 only as a reference parcel and predated construction of the Maui IV facility
entirely. No document showing both the boundaries of Tract 22654 and the tank’s
footprint in relation to those boundaries existed until the 2013 Takai as-built
survey, which marked the first recorded identification of the government’s
taking.
¶ 30 Further compounding this problem is the Commonwealth’s pattern of
taking land without notice and refusing to pay landowners. See, e.g.,
Commonwealth v. Lot No. 218-5 R/W, 2016 MP 17 ¶¶ 11–16 (describing failure
to appropriate land claims as an “ongoing failure to fulfill a constitutional
mandate”). The right to just compensation is based on “a principle of fairness and
not a technical rule of procedure.” U.S. v. Dickenson, 331 U.S. 745, 749 (1947).
Under these conditions, imputing notice imposes an additional burden on
1
The 1979 Determination of Ownership for Tract 22654 was issued based on a 1976
general parcel recording plat rather than a dedicated boundary survey establishing the
tract’s exact lines on the ground. The boundaries of Tract 22654 and the location of the
tank’s footprint in relation to those boundaries were not established until the 2013 Takai
as-built survey. This reflects a broader feature of Commonwealth land records. The
CNMI Division of Land Registration and Survey was created with the mission of
surveying “pre-war properties to which the Trust Territory government issued title
determination of ownership without actual surveys.” Division of Land Registration and
Survey, DEP’T OF LANDS & NAT. RES., https://dlnr.cnmi.gov/land-registration-and-
survey.html. This program reflects the longstanding reality that many Commonwealth
parcels received legal title before their exact physical boundaries were ever surveyed
on the ground. See also Estate of Taisacan v. Hattori, 4 NMI 26, 28 nn.1–2 (1993)
(noting that Trust Territory title determinations described land only as “more or less” a
certain size and “subject to survey,” requiring formal survey methodology to resolve
disputed boundary locations).
Sablan v. CUC, 2026 MP 5
landowners adjacent to public works for a future benefit that is difficult to
quantify financially.
¶ 31 A landowner's awareness of a nearby government structure therefore does
not establish knowledge that the structure crosses his property line. In the
Commonwealth, that determination often cannot reasonably be made without a
formal survey or some other form o actual notice.
¶ 32 The record establishes that both accrual conditions were satisfied no
earlier than October 2013. Construction of the Maui IV facility concluded by
March 31, 1992, satisfying the first condition by fixing the scope of the
occupation. Order I at 4. The second condition was not satisfied until October
2013, when surveyor Jesus D.L.G. Takai completed an as-built survey plat
showing the tank and surrounding fence encroached onto Tract 22654. Order I at
6; Order II at 2–3; Supp. App. 1421. Conrad testified to knowing the tank existed
in 1992, but not knowing it crossed his property line before the 2013 survey. Tr.
54:11–25. The trial court found Conrad “was aware of the water tank and fences
sometime after their construction, but was not aware they were on his land until
the October 2013 As-Built survey.” Supp. App. 1421.
¶ 33 Because the claim accrued in 2013, Conrad’s 2015 complaint was timely
under either 7 CMC § 2505 or 7 CMC § 2502(a)(2). We need not decide which
limitations period applies. The trial court's categorical conclusion that no statute
of limitations applies to inverse condemnation claims was erroneous, but its
ultimate determination that Conrad’s claim was timely is affirmed under the
correct legal standard for accrual.
B. CUC Is Subject to Inverse Condemnation Liability
¶ 34 Article XIII, Section 1 of the NMI Constitution vests the power of eminent
domain in the Commonwealth. Article XIII, Section 2 provides that private
property may not be taken without just compensation. CUC argues these
provisions must be read together to mean only entities expressly possessing
eminent domain authority can be constitutionally required to pay compensation,
relying on In re Estate of Roberto, 2004 MP 7, and Castro, 2009 MP 8. We reject
that reading. The constitutional duty to provide just compensation arises from the
taking itself, not from the particular allocation of statutory authority.
¶ 35 CUC reads Roberto and Castro too broadly. In Roberto, we held that courts
“lack the power of eminent domain” and are “simply incapable of ‘taking’
property” when reallocating estate assets among private heirs. 2004 MP 7 ¶ 7. In
Castro, we found that a deprivation caused by a temporary restraining order does
not undergo a takings analysis because “the judiciary generally lacks the eminent
domain powers reserved for the other branches.” 2009 MP 8 ¶ 13.
¶ 36 Roberto and Castro addressed a narrow institutional question: whether the
judiciary, in the exercise of its adjudicative function over private disputes, can
effect a compensable taking. Neither case considered the liability of a
governmental entity when it affirmatively occupies private property to construct
and operate public infrastructure. A court adjudicating competing private claims
Sablan v. CUC, 2026 MP 5
does not appropriate property for public use. CUC, by contrast, participated in
the planning, construction, and continued operation of a public water facility that
physically occupies private land for a public purpose.
¶ 37 The constitutional duty to provide just compensation arises from the act of
taking private property for public use, not from the formal possession of eminent
domain authority. First English Evangelical Lutheran Church v. County of Los
Angeles, 482 U.S. 304, 314–16 (1987). When the government physically
appropriates or occupies private land for a public purpose, the constitutional
obligation to compensate attaches to the occupation itself, regardless of whether
formal condemnation procedures were invoked. Cedar Point Nursery v. Hassid,
594 U.S. 139, 147–48 (2021). Were it otherwise, the government could avoid
constitutional accountability simply by carrying out public projects through
entities to which it has delegated operational authority while withholding formal
eminent domain power.
¶ 38 Federal authority confirms this principle. In Fountain v. Metro. Atlanta
Rapid Transit Auth., the Eleventh Circuit found unacceptable a theory would
permit “the state . . . escap[ing] liability under the just compensation clause by
taking property through agencies without statutory powers of eminent domain.”
678 F.2d 1038, 1044 (11th Cir. 1982). The Ninth Circuit held in Tahoe-Sierra
Pres. Council, Inc. v. Tahoe Regional Planning Agency that governments cannot
avoid the strictures of the Constitution “through the expedient of delegating
regulatory powers, but not the power of eminent domain, to independent
government entities that would then be free to zone away all use of private
property without fear of liability.” 911 F.2d 1331, 1341–42 (9th Cir. 1990). CUC
argues this principle is limited to the regulatory-takings context in which Tahoe-
Sierra arose. We disagree. This constitutional principle applies with equal force
to the entity physically occupying private land rather than merely regulating it.
The constitutional obligation to compensate does not turn on which branch of
government acts or how statutory authority is distributed.
¶ 39 The Legislature created CUC as a public corporation within the
Commonwealth government to develop and operate public utility infrastructure.
4 CMC § 8121(a), 8122. Acting under the CNMI's Capital Improvements
Program, CUC selected the site on Tract 22654, broke ground in March or April
1991, and completed the Maui IV facility by mid-1992, funded through federal
grants channeled through the CNMI Office of the Governor and Legislature. App.
1425; Tr. 818–19. Where a governmental entity physically occupies private land
to carry out such a purpose, inverse condemnation supplies the mechanism
through which the constitutional guarantee of just compensation is enforced. The
absence of formal eminent domain authority does not alter the constitutional
character of the occupation.
¶ 40 The deprivation of use is clear in this case. The absence of formal eminent
domain authority does not alter the constitutional character of CUC’s occupation.
The trial court correctly concluded that CUC is subject to inverse condemnation
liability.
Sablan v. CUC, 2026 MP 5
C. Superior Court Did Not Abuse Its Discretion by Bifurcating Trial
¶ 41 This case proceeded in separate liability and damages phases. By June 15
2020, the first part of the bench trial concluded. In this first section, the parties
had completed presentation of evidence on liability and submitted proposed
findings and conclusions directed to those issues. A September 23, 2022 order
resolved liability and addressed all the affirmative defenses and explicitly
reserved issues, relating to valuation, ownership, and just compensation to a
separate hearing. The second part of the bench trial held on January 31, 2023 and
March 8, 2024 pertained to these remaining issues. An order and judgment issued
on November 8, 2024 resolved the issues of how much money was owed and to
whom.
¶ 42 The trial court's decision to receive additional evidence more than two
years after the parties rested on liability and submitted proposed findings of fact
and conclusions of law raises two questions: whether a reopening of the record
occurred at all, and if so, whether the court abused its discretion by ordering it.
See Ito., 4 NMI at 61 (stating the trial court has “inherent power to police its
docket” through the “timing of trials”).
¶ 43 The first question resolves the second. A reopening presupposes a closed
record, and that is not what occurred here. See, e.g., Olapai 3 NMI at 104
(describing a reopening of the case “after the trial concluded”). Because the
damages phase had not yet commenced, the evidentiary record on those issues
remained open. Submission of proposed findings did not convert an incomplete
bifurcated proceeding into a final, closed record. Nor does the fact that the court
identified gaps in the damages evidence and directed further proceedings on them
establish impropriety. A court that perceives an incomplete record and acts to
complete it exercises precisely the kind of inherent authority that permits case
management orders of all kinds. See Ito, 4 NMI at 61.
¶ 44 Even assuming the September 2022 order functioned as a reopening, the
trial court still possessed authority to proceed in that manner. Olopai, 3 NMI at
108–09. Rather than imposing categorical procedural requirements, Olopai
examined the surrounding circumstances, including the scope of the additional
evidence, the timing of the request, the length of the supplemental testimony, and
the usefulness of the evidence to the court. Id. The Court upheld the trial judge’s
decision because the defendants “were not prejudiced” by the additional
proceedings. Id. at 109. That reasoning is consistent with Ninth Circuit practice.
See United States v. McQuisten, 795 F.2d 858, 864 (9th Cir. 1986) (upholding
reopening to admit photograph of defendant and truck where defendant failed to
request a continuance to recall the witness for cross-examination and therefore
demonstrated no concrete prejudice).
¶ 45 As prejudice to the opposing party is the dispositive inquiry under Olopai,
then the same standard logically applies whether the court acts on a motion or on
its own initiative. The Pennsylvania Supreme Court reached the same conclusion,
seeing “no meaningful distinction between the oft-cited scenario of reopening a
record on a parties' motion and sua sponte, as discussed herein, as long as in both
Sablan v. CUC, 2026 MP 5
scenarios there is no prejudice to either party and, accordingly, justice is served.”
Commonwealth v. Safka, 141 A.3d 1239, 1251 (Pa. 2016).
¶ 46 The September 2022 order presents no abuse of discretion. An abuse of
discretion requires prejudice to one side through surprise or inadequate
opportunity to make their argument. See Pritchett v. United States, 351 A. 3d 14,
19 (D.C. 2026) (discussing factors for an abuse of discretion in the criminal
context). The order directed further proceedings on unresolved damages issues.
Both sides participated fully, cross-examining witnesses, introducing evidence,
and submitting additional briefing. That falls well short of establishing prejudice.
The record reflects ordinary judicial management of unresolved compensation
issues, not advocacy for either party. Ito, 4 NMI at 61.
D. The Trial Court Did Not Err in Finding No Taking of Tract 22654-1
¶ 47 Conrad argues the Maui IV chain-link fence was a taking of Tract 22654-
1 because it blocked access from Laguna Drive through Tracts 21710-R/W and
21709-R/W to Parcel W-10, which fronts the triangular lot. According to Conrad,
the fence rendered the parcel permanently landlocked and economically
unusable. The record does not support that theory.
¶ 48 A compensable taking occurs when the government physically occupies
private property or deprives the owner of all economically beneficial use of a
defined parcel. Loretto, 458 U.S. at 434–35; Lucas v. S.C. Coastal Council, 505
U.S. 1003, 1019 (1992). The government never physically occupied Tract 22654-
1. Conrad’s claim instead rests on the contention that the fence eliminated all
practical access to the parcel. See Carillion Realty Corp. v. State, 158 Misc. 2d
810, 812 (N.Y. Ct. Cl. 1993) (discussing how denying access to remainder can
be a taking). But when the fence was constructed, the area that would later
become Tract 22654-1 remained part of a single undivided tract co-owned
collectively.
¶ 49 The trial court found access to that area remained available at the time of
construction by traversing the interior of the larger Tract 22654. Order II at 14,
App. 66. This is a factual finding reviewed for clear error. See Santos, 2000 MP
9 ¶ 3. The record supports that finding. Conrad himself testified that before the
2013 subdivision, access to the triangular area remained available through what
later became Tract 22654-R1. See App. 1298–99 (conceding he could access land
if he went through easement). A Land Claims Investigator with the Department
of Public Lands likewise testified the area could still be reached from Laguna
Drive by crossing the unified parent tract. App. 968. The finding of access is not
clearly erroneous.
¶ 50 The loss of access occurred years later, when the 1991 co-owners
subdivided Tract 22654 into separate parcels and transferred those parcels among
themselves without reserving any internal easement connecting the newly created
Tract 22654-1 to Laguna Drive. The trial court expressly found that the
landlocked condition resulted from the family’s own subdivision decisions rather
Sablan v. CUC, 2026 MP 5
than from the government’s earlier construction of the fence. App. 76. The record
supports that conclusion.
¶ 51 Takings claims require a causal connection between the challenged
government action and the alleged deprivation of property rights. Esplanade
Props., LLC v. City of Seattle, 307 F.3d 978, 984 (9th Cir. 2002); see also
Carillion Realty Corp., 158 Misc. 2d at 813 (holding a landowner cannot recover
for a parcel becoming landlocked after rejecting the government’s offer of an
easement). That causal connection is absent here. Access to the area that became
Tract 22654-1 remained available through the co-owner’s own land for more than
two decades after the fence was constructed. Their later decision to subdivide the
property without preserving internal access easements created the landlocked
condition now challenged. Because the alleged deprivation resulted from private
subdivision decisions rather than government action, no compensable taking of
Tract 22654-1 occurred.
E. The Superior Court Erred in Finding That Compensation Is Shared Among
the Four 1991 Co-Owners
¶ 52 The next question is whether the compensation must be shared among the
four 1991 co-owners. As discussed above, the claim accrued in 2013 when the
taking became ascertainable to the landowners. Katzin, 908 F.3d at 1358; see also
Palazzolo v. Rhode Island, 533 U.S. 606, 628 (2001) (holding an inverse
condemnation claim based on a regulatory taking accrues when ripe). Once
vested, that right is personal to the owner and does not automatically pass with a
later conveyance of the land itself. See Palazzolo, 533 U.S. at 628 (stating when
“the fact and extent of taking are known . . .. as a general rule” no compensation
will be paid to subsequent purchasers); Danforth v. United States, 308 U.S. 271,
284 (1939); Brooks Inv. Co. v. City of Bloomington, 232 N.W.2d 911, 918 (Minn.
1975) (“This right has the status of property, is personal to the owner, and does
not run with the land if he should subsequently transfer it without an assignment
of such right.”).
¶ 53 An exception exists where the original owner did not consent to the taking
and specifically assigns the compensation right to the current property right.
Snow v. Town of Calumet Okla., 512 P.3d 369, 372 (Okla. 2022) (citing Drabek
v. City of Norman, 946 P.2d 658, 662 (Okla. 1996)); see also Argier v. Nevada
Power Co., 952 P.2d 1390, 1392 (Nev. 1998) (discussing a contract of sale
transferring the right of compensation as an exception to the general rule).
¶ 54 To determine whether the exception is applicable we must look to the 2013
Confirmation Deed. When interpreting a contract such as a deed, the primary
concern is to give effect to the intentions of the parties as expressed in the
instrument. Saipan Achugao Resort Members Ass’n v. Wan Jin Yoon, 2011 MP
12 ¶ 15; see Benavente v. Marianas Pub. Land Corp., 2000 MP 13 ¶ 37 (looking
to contract law cases for guidance on interpreting a deed) The language of a deed
which is “plain, certain, and unambiguous” should be given its plain
construction. Benavente, 2000 MP 13 ¶ 37. When ambiguity remains, we may
Sablan v. CUC, 2026 MP 5
look outside the four corners of the agreement. Northern Marianas Hous. Corp.
v. BankPacific, Ltd., 2021 MP 7 ¶ 14.
¶ 55 The 2013 Deed of Conveyance and the later Confirmation Deed both
conveyed to Conrad not only ownership of Tracts 22654-R2 and 22654-1, but
also “all rights, title, and interests” in the parcels. App. at 1337–40. The
Confirmation Deed indicates it was filed simply to fix a typo in the original deed
but includes additional language not present in the original deed. It transfers
“claims” in the parcels in one section of the deed along with the original “all
rights, title and interests.” Id. at 1339–40. Claim is a “broad and comprehensive
term” including title and ownership. Sherman v. Sherman, 122 N.E. 439, 443
(S.D. 1909).
¶ 56 There is an ambiguity from the inclusion of “claim.” The Confirmation
Deed was filed to fix an error with the lot number of the property but also seems
to grant an additional broad interest in the property. The other language in the
Confirmation Deed does not resolve this ambiguity. Interest is broad and refers
“both generically to include varying aggregates of rights, privilege, powers and
immunities and distributively to mean any one of them.” Restatement (First) of
Property § 5.
¶ 57 A right is “a legally enforceable claim of one person against another, that
the other shall do a given act or shall not do a given act.” Restatement (First) of
Property § 1. As an inverse condemnation claim is a legally enforceable claim
against the government to be paid money, it is a right. NMI CONST. art. XIII. To
determine exactly what claims, rights, title and interests were conveyed, we will
need to look outside the four corners of the document. Northern Marianas Hous.
Corp., 2021 MP 7 ¶ 14. While typically the right is personal when it accrues and
would not be transferred with the property absent an explicit mention, the
surrounding context around the transfer makes clear the parties’ intent.
¶ 58 The 1991 co-owners were subdividing the property and the survey was
done for this purpose. This survey revealed an interest in the property they were
previously unaware of, the inverse condemnation claim. See Dra