(CN) - A group of homeowners will not face foreclosure, because the developer failed to install their sewer lines, the Guam Supreme Court ruled.
Kini Sananap and other homeowners sued developer Cyfred Ltd. to stop the foreclosures. Cyfred did not fulfill its obligation to install the sewer lines within one year of transferring the lots to them.
"Once Cyfred failed to timely install the sewer lines, the Sananaps were excused from paying on their promissory notes," Chief Justice Torres wrote.
The fact that the Sananaps missed two payment dates and incurred late fees does not constitute a material breach of the contract.