Owner of defunct Plumeria hotel seeks release of $224K

The owner of the defunct Plumeria Resort in San Roque is asking the Superior Court to immediately release to them the $224,194 that one of the hotel’s owners had posted with the court in 2007 to hold off a court judgment against him.

Saipan Achugao Resort Members’ Association or SARMA, owner of Plumeria Resort, said the immediate release of the money is several years overdue and that it is urgently needed in order to reopen the hotel.

In a motion filed in court, SARMA counsel Sean E. Frink said that Wan Jin Yoon’s appeal was unsuccessful so the judgment against him stands. SARMA is entitled to the money, he added.

The motion will be heard before Superior Court associate judge David A. Wiseman on Jan. 19, 2012.

SARMA was formed in 2000 as a non-profit corporation. It is composed of members who own subleased interest in units or commercial spaces at the Plumeria Resort.

Plumeria Resort was built in 1990 by Saipan Joint Venture, which assigned the ground lease to SARMA in 2000.

SARMA sued one of its members, Yoon, for alleged non-payment of management fees and maintenance fees. Yoon filed a counter lawsuit against SARMA for the alleged forced sale of his unit.

In May 2006, Wiseman ruled that SARMA’s forced sale of Yoon’s unit was improper because Yoon was not in default of either lease or SARMA’s bylaw provisions at the time of the forced sale. Wiseman, however, determined that Yoon is subject to dues assessments and emergency repair fees from March 7, 2003, “to the present.” In November 2006, Wiseman ordered Yoon to remit $224,194 to SARMA.

Yoon appealed to the CNMI Supreme Court and requested a stay of judgment.

In March 2007, Wiseman stayed the appeal on the condition that Yoon submits to the court a bond in the amount of the judgment, plus 10 percent of the judgment to cover interest, plus $250 to cover costs.

On April 2, 2007, the CNMI Court accounting officer received a cashier’s check in the amount of $246,863.40 from Yoon.

In SARMA’s motion to release the money, Frink cited that in October 2011, the CNMI Supreme Court affirmed SARMA’s $224,194 judgment against Yoon.

Frink said that Yoon’s placement of the $246,863.40 with the court was security intended by the court and the parties to guarantee payment to SARMA should Yoon lose his appeal.

Frink said the Supreme Court’s order and judgment made clear the judgment against Yoon ordered by the Superior Court in favor of SARMA was correct.