Court closes battle for Hillblom estate

The Superior Court approved Friday the settlement agreement proposed by the four children of the late business tycoon Larry Lee Hillblom and his Foundation, paving the way for the distribution of the remaining $72 million cash held by the estate.

In giving his seal of approval, Superior Court Judge Pro Tem Alexandro C. Castro said he found the settlement agreement in the best interest of the estate, the qualified heir claimants and the Hillblom Foundation.

He ordered the Bank of Saipan, executor of the Hillblom estate, to begin the necessary steps in the transfer of cash and noncash assets to the qualified heir claimants and the Hillblom Foundation no later than April 28, 2000.

Based on the settlement agreement, the Foundation will receive $24.9 million. The four Hillblom children will receive the following:

• Jellian Cuartero, 5, Filipino, $11.6 million;

• Mercedita Feliciano, 4, Filipino, $11.9 million;

• Junior Larry Hillbroom, 15, Palauan, $11.3 million; and

• Nguyen Be Lory, 5, Vietnamese, $13 million.

The global settlement agreement was arrived at by all the parties involved in the heirship case after the lawyers held meetings in San Francisco, Hawaii and marathon sessions in Guam to hammer out details on how the assets will be divided and provide payment for the obligations of the estate.

During the hearing, the lawyers expressed their interest to achieve “everlasting peace” for the sake of the children and put an end to almost five years of bitter legal battle.
All the parties waived any right to make any appeal during the hearing.

Mr. Hillblom was 52 years old when he died in a seaplane crash on May 21, 1995 near Anatahan Island off Saipan. The late business tycoon had worldwide business interest which include airlines, hotels and other businesses located in the United States, Europe and Southeast Asia.

Mr. Hillblom was the “H” in DHL Worldwide, a courier service, which he co-founded with his two best friends, Adrian Dalsey and Robert Lynn.

However, before any transfer of funds is made, the court ordered Special Master Pedro Atalig and Special Administrator Diego Mendiola to visit the four children to find out their living conditions and the state of their finances with the previous releases made by the court.

Judge Castro also provided additional compensation to the lawyers involved in the case amounting to $1 million and $375,000 to the Bank of Saipan in recognition of their contribution to the settlement agreement. But all the lawyers and the bank refused to receive such additional payment given to them.

At the same time, Judge Castro increased the $75,000 each compensation for Special Master Pedro Atalig and Special Administrator Diego Mendiola to $275,000 and $175,000, respectively.

Lawyer Joe Hill, counsel for Junior Hillbroom, said the resolution of the Hillblom case only proves that the CNMI judiciary can handle such a complex legal issue.

The approval of the settlement agreement was almost delayed as Judge Castro imposed certain conditions which the lawyers opposed. This led the Judge to suggest another hearing date to give them time to discuss his suggested modifications in the agreement.

But the lawyers were determined to have the agreement approved as they sought a one-hour-and-a-half recess in the afternoon to meet among themselves.

When Judge Castro gave his stamp of approval and left the courtroom, the parties clapped and hugged each other. The lawyers presented Judge Castro and his staff commemorative T-shirts signifying the resolution of the case in Saipan.