Flores says bank’s shredding of documents extremely suspect

Saipan Mayor Donald G. Flores insists that the record of his Time Certificate of Deposit in the amount of $200,000 could not have disappeared without any negligence or intentional destruction of the document.

Flores, through counsel Juan T. Lizama, in his opposition to Union Bank of California’s motion for removal and motion to dismiss his lawsuit, said the shredding of documents is extremely suspect.

Lizama said the fact that most of Union Bank’s employees transferred to First Hawaiian Bank increases the likelihood that any of them could have been involved in the negligence or deliberate destruction of his CD record in order for FHB to avoid paying Flores.

“It is common knowledge, to be proven at trial, that FHB simply moved to the same building occupied by Union Bank,” Lizama said.

Lizama said the mayor’s reliance in the safety of his CD record is reasonable even after the sale of Union Bank.

“It is not foreseeable that Union Bank would destroy an outstanding record in less than 10 years for a mere anticipation of selling its bank assets,” the former judge pointed out.

Lizama said it is not rational for Union Bank to suggest that the CD records are unavailable because the CD closed more than 10 years ago.

“Did the record get destroyed or become missing after the sale of the assets? Or is Union Bank saying that the records were destroyed during the period of time from the date of issuance of the CD to the time the bank was sold?” the lawyer asked.

If this happened, Lizama said, Union Bank’s liability is absolutely certain.

“It is not foreseeable that Union Bank would have deliberately destroyed the CD record for whatever reason during the less than 10 years from the time of issuance to the time of sale,” he said.

But it is foreseeable, Lizama said, for a bank employee or officer to destroy Flores’ CD record or any other account record still outstanding.

Lizama asked the U.S. District Court for the NMI to allow Flores to proceed to trial and to allow Flores to amend his complaint if the court believes that is necessary.

Flores is suing Union Bank of California and FHB for breach of contract, unjust enrichment, negligence or gross negligence, breach of fiduciary duty, and fraud.

Lizama stated in the complaint that Flores bought the CD in the principal amount of $200,000 that was issued in his name by the Saipan branch of the Union Bank on Sept. 10, 1993.

Lizama said his client kept the issued certificate with the intent of eventually redeeming it.

Lizama said an officer or employee of Union Bank signed the CD.

Lizama said that on Nov. 15, 2001, Union Bank sold all assets and liabilities of its Saipan branch office to First Hawaiian Bank.

The Union Bank of California has asserted that it does not owe any special duties to Flores.

Union Bank of California joined FHB’s motion to dismiss Flores’ lawsuit.