Naraja wife sues bank for alleged defamation

Fitzgerald

The wife of Superior Court Presiding Judge Roberto C. Naraja has filed a defamation lawsuit against Bank of Hawaii for allegedly refusing to honor her eight cashier’s checks totaling $290,000 that she had purchased in 2016, but then telling all other banks on Saipan that she had improperly secured the checks.

Aside from defamation, Frances DLG Naraja, through counsel William M. Fitzgerald, is also suing BOH for dishonoring the cashier’s check and conversion.

Naraja asked the Superior Court to order the return of $290,000, represented by the cashier’s checks, with interest. She is also seeking damages and wants a jury trial.

She filed the lawsuit in the local court last July 13. The bank, through lawyer Sean Frink, asked last Aug. 17 that the lawsuit be moved to the U.S. District Court, citing diversity jurisdiction as BOH and Naraja are citizens of different states and the amount in question is more than $75,000.

According to Fitzgerald in the complaint, prior to Dec. 6, 2016, Naraja held a BOH savings account in the name of herself, her sister Gloria DLG Sablan, and her brother, Joaquin V. Deleon Guerrero.

Fitzgerald said all three had signatory power over the account.

Fitzgerald said that on Dec. 6, 2016, Naraja went to BOH, Gualo Rai Branch, and purchased eight cashier’s checks in the total amount of $290,000.

Fitzgerald attached as exhibits copies of the eight checks to support her complaint.

He said the checks were purchased with funds in the account of Naraja, and the account was debited in the amount of the checks and then closed.

The cashier’s checks were payable to Naraja and were approved and signed by the bank’s manager and an authorized signatory.

On Dec. 28, 2016, Naraja presented to a BOH teller a check payable to her in the amount of $10,000.

Fitzgerald said BOH refused to honor the check and informed Naraja that all eight of the checks would not be honored.

He said BOH refused payment of them and informed Naraja that they had been cancelled because the bank had discovered, subsequent to the checks being issued, that the Superior Court had issued a writ of execution for “any type of account in the name of Joaquin V. Guerrero.”

Fitzgerald said no account in the name of Joaquin V. Guerrero existed at the time BOH received the writ of execution.

He said BOH informed all the other banks on the island that Naraja had improperly secured the cashier’s checks, and that BOH would, therefore, not honor the checks.

Fitzgerald said as a result, BOH converted Naraja’s money to the bank’s use, causing her mental anguish, emotional distress, and humiliation.

Fitzgerald said without justification or further investigation, BOH invalidated and refused to honor the checks.

The lawyer said by refusing to honor the cashier’s checks and refusing to make the funds that she paid the bank for the cashier’s checks available to her for withdrawal as the owner of the funds, the bank has willfully converted Naraja’s money and is liable to her for its return.

He said as a result of BOH’s false and defamatory statements, Naraja has been greatly injured in her good name and character and suffered damages to be proven at trial.

In April 2017, Commonwealth Development Authority, through its then-counsel Jennifer Dockter, disclosed that CDA filed a lawsuit in 2004 against couple Joaquin V. Guerrero and Esther Guerrero and their business, Island Security Services Inc., for unpaid loans.

Dockter said that in December 2006, in an attempt to collect money long due to CDA, CDA applied for and received a writ of execution for any funds held in BOH related to Joaquin Guerrero.

Dockter said after obtaining the writ of execution to seize the currency and cashier’s checks from Naraja, CDA successfully recovered the cashier’s checks that CDA caused to be deposited with the court.

Dockter said the $6,000 withdrawn by Naraja was never recovered by BOH or CDA because it had been “dissipated” while in Naraja’s possession.