$224,194 released to owners of defunct Plumeria

This was the message of Superior Court associate David A. Wiseman to one of the owners of the defunct Plumeria Resort who asked the court to stay the release of his $224,194 that he placed as an appeal bond.

Wiseman on Tuesday ruled that Wan Jin Yoon’s motion to stay the release of the money is untimely because the funds have already been released to the Saipan Achugao Resort Members’ Association, or SARMA.

Also, Yoon presented no legal authority to justify the stay in releasing the funds, said Wiseman.

He said he will separately rule on Yoon’s motion for reconsideration of his May 9, 2012, decision to release the funds being held in bond to SARMA.

In his May 9 decision, Wiseman ordered that the appeal bond posted by Yoon and held by the court shall be released by the clerk of court to 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.

SARMA 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 counter lawsuit 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 bylaws at the time of the sale.

Wiseman, however, determined that Yoon is subject to dues assessments and emergency repair fees from March 7, 2003, “to the present.”

In November 2006, Wiseman 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 supersedeas 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 court 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 needed to reopen the hotel.

Yoon, through counsel Richard W. Pierce, however filed a counter motion to release the funds to him and a determination of damages pursuant to the Supreme Court’s ruling on his appeal.

Wiseman disagreed with Yoon and ordered the release of the money.

On March 23, 2012, Yoon filed the motion asking the court to stay disbursement of the money to SARMA and to maintain the status quo pending his concurrent motion for reconsideration of the court’s May 9 order.

At the time, the money had already been released to SARMA, Wiseman said.

By Ferdie de la Torre
Reporter