$224K OK’d for release to owner of defunct Plumeria Resort

The Superior Court has ordered the release to the owner of the defunct Plumeria Resort in San Roque the $224,194 that one of the hotel’s owners had posted with the court in 2007 to stay the imposition of a court judgment against him.

In an order issued last week, Associate Judge David A. Wiseman ordered that the appeal bond posted by Wan Jin Yoon be released to the Saipan Achugao Resort Members’ Association, or SARMA, through its attorney, Sean Frink, in trust for his client.

“SARMA has been denied the judgment amount for over five years. The court finds that further denying SARMA its right to its $224,194 judgment is not proper and would defeat the purpose of and policy behind the posting of an appeal bond,” Wiseman said.

Wiseman also ordered Yoon and SARMA to brief the court of Yoon’s damages based on the CNMI Supreme Court’s opinion so that he can make a reasoned decision pursuant to the high court’s ruling.

While the Supreme Court instructed the Superior Court to examine the issue of Yoon’s contractual damages, the remaining judgment remains unchanged, Wiseman said.

“So, while a stay was created upon the posting of the.bond by Yoon in 2007, the $224,194 judgment in favor of SARMA was not affected upon appeal, and therefore the stay is now lifted,” Wiseman said.

SARMA, formed in 2000 as a non-profit, 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 countersuit 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.” He ordered Yoon to remit $224,194 to SARMA.

Yoon then 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.

SARMA then filed a motion to release the money. Wiseman heard the motion on Jan. 19, 2012.

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

Frink said the immediate release of the money as payment is many years overdue and that it is necessary for the re-opening of the hotel.

Frink pointed out that Yoon’s appeal was unsuccessful so the judgment against him stands.

Yoon, through counsel Richard W. Pierce, filed a counter motion to have the funds released to him and a determination of damages pursuant to the Supreme Court’s ruling on his appeal. Pierce argued that any potential damage award to Yoon by the court should be offset from the bond amount.

In his order granting SARMA’s motion, Wiseman disagreed with Yoon’s position. He said the Supreme Court held that “the judgment of the trial court as to Yoon’s damages is vacated, and this case is remanded for a consideration of contractual damages consistent with this opinion.”

Wiseman noted that the Supreme Court ruled that “in all other respects the judgment of the trial court is affirmed.” Therefore the $224,194 judgment is valid and undisturbed by the Supreme Court ruling, he said.