Manglona hears motion to dismiss Hillbroom lawsuit

U.S. District Court for the NMI Chief Judge Ramona V. Manglona held off making a decision in the motion filed by Vietnam-based lawyer Barry Israel to dismiss the lawsuit filed by his former client, Junior Larry Hillbroom, the reported DNA-proven son of the late business tycoon Larry Lee Hillblom.

She also placed under advisement Israel’s motion to dismiss a cross claim filed against him by Keith A. Waibel, the former trustee of Hillbroom’s Trust.

She did not indicate as to when she will come out with a decision in both motions.

Manglona heard the case yesterday, with William Mills, counsel for Israel, arguing the motion to dismiss Hillbroom’s complaint or, alternatively, to transfer the case to the U.S. District Court of Guam. Attorney Graham Lippsmith, counsel for Hillbroom, argued their opposition to the motion.

Mills also argued Israel’s motion to dismiss Waibel’s third-party complaint against Israel. Attorney Patrick Civille argued on behalf of Waibel.

The other lawyers present at the hearing were Mark Hanson, counsel for Hillbroom; Ramon Quichocho, counsel for Israel and third-party defendant David J. Lujan; and Robert Torres, counsel for Waibel.

Lujan and Israel have accused Hillbroom of colluding with Waibel to extort monies from them. Lujan, through counsel, accused Hillbroom and Waibel of being locked together in an extortionary enterprise against him and Israel.

Hillbroom, who is now based in Idaho, is suing Lujan and 10 other unnamed co-defendants in the U.S. District Court for the NMI for legal malpractice, breach of fiduciary duty, fraud, racketeering activity, civil conspiracy, and violations of California Business and Professions Code.

Hillbroom filed the original lawsuit against Lujan in the Central District of California in 2009. The case was dismissed after the court found that it did not have personal jurisdiction over him. This prompted Hillbroom to file the lawsuit in the U.S. District Court for the NMI.

Hillbroom is suing Israel in the U.S. District Court for the NMI for allegedly conspiring to inflate the attorney’s contingency fee when Hillblom’s fortune was still undergoing probate proceedings. Hillbroom named Waibel as co-defendant, for negligence, breach of fiduciary duty, fraud, and racketeering activity.

Waibel denied the allegations and filed a cross-claim against Israel and Lujan, alleging that Lujan and Israel obtained about $38 million in fees and costs from Junior Larry Hillbroom Trust by increasing their contingency fee without Hillbroom’s knowledge.

Waibel, who is based in Morro Bay, Calif., asked the U.S. District Court for the NMI to award him indemnity against Lujan who “may be found liable” in Hillbroom’s lawsuit.

Lujan and Israel served as Hillbroom’s counsels during Hillblom’s probate in the CNMI Superior Court.