Union Bank dismisses cross-claim vs FHB

Union Bank dismissed Wednesday its cross-claim complaint against First Hawaiian Bank in connection with Saipan Mayor Donald G. Flores’ lawsuit against the two banks.

Sean E. Frink, counsel for Union Bank, filed Wednesday a notice of dismissal of their cross-claim in the U.S. District Court for the NMI.

Frink said that Union Bank dismisses its cross-claim against FHB without prejudice. He did not elaborate. Dismissal without prejudice is when a case is dismissed but the plaintiff if allowed to re-file a new suit on the same claim in the future.

Flores is suing Union Bank and FHB for allegedly refusing to return the principal and interest earned on a time certificate of deposit amounting to $200,000 that he bought from the then Union Bank Saipan Branch in 1993. Flores is suing the two banks for breach of contract, unjust enrichment, negligence or gross negligence, breach of fiduciary duty, and fraud.

On Nov. 15, 2001, Union Bank reportedly sold all assets and liabilities of its Saipan branch office to FHB.

Last month, U.S. District Court for the NMI Chief Judge Ramona V. Manglona granted FHB’s motion to dismiss Flores’ all causes of action. Flores then filed a first amended complaint against the two banks.

Union Bank, formerly known as Union Bank of California, filed the cross-claim complaint against FHB for indemnification, and contributory fault and contribution.

Union Bank asked the court to hold FHB responsible for the payment of all damages claimed by Flores.

Frink said that if his client, Union Bank, is found liable to pay Flores any amount, the damages must be apportioned according to the respective liability of all of the parties in the lawsuit.

FHB then asked the court to dismiss Union Bank’s cross-claim. FHB counsel Richard Johnson asserted that Union Bank’s complaint for contribution must be dismissed “for failure to state a claim.” Johnson said Union Bank’s cross-claim presents no facts that supports the claim for indemnity.

The hearing on FHB’s motion to dismiss was set for Wednesday. Attorney Juan T. Lizama, counsel for Flores, however, called the court requesting for the hearing to be postponed as he was not feeling well. This prompted the U.S. District Court for the NMI Chief Judge Ramona V. Manglona to reset the hearing to yesterday.

Frink then filed yesterday the Union Bank’s motion to dismiss its cross-claim.