Ex-vice speaker files $3M suit vs bank for malicious prosecution

Former House Vice Speaker Alejo Mendiola Jr. filed yesterday a $3 million lawsuit against Bank of Guam and its Rota branch manager Katherine B. Muna for malicious prosecution.

Mendiola, through counsel William F. Fitzgerald, also sued BoG and Muna for intentional infliction of emotional distress. He demanded $3 million in punitive damages plus special and compensatory damages.

Mendiola requested the Superior Court to grant him a jury trial.

Fitzgerald stated in the complaint that on Dec. 18, 2003, the defendants caused their law firm to prepare for the BoG a complaint to recover possession of vehicles, for injunctive relief, and for money damages.

BoG sued Alejo Mendiola Jr., his cousin Fidel Mendiola Jr., and D&J Equipment Rental for allegedly refusing to turn over to the bank three dump trucks despite a court order.

In the complaint, Attorney Gregory Koebel, counsel for the bank, asked the Superior Court to grant the bank possession of the collateral in an amount equal to the value of such trucks and court judgment.

Koebel also sought for a temporary restraining order, and preliminary and permanent injunctions preventing all defendants from using the trucks, placing the trucks in danger of destruction, and concealing or selling them.

Fitzgerald said by filing the original complaint, BoG and Muna, through their actions, maliciously allowed two local newspapers to obtain copies of the original complaint, which resulted in the news articles.

Fitzgerald said that on Jan. 2, 2004, BoG filed its first amended complaint to recover possession of vehicles, for injunctive relief and for money damages.

All the references made to Alejo Mendiola Jr. in the original complaint were completely removed and not found in the first amended complaint, the lawyer noted.

Fitzgerald said that on the same day, the bank filed contemporaneously with the first amended complaint a document entitled “dismissal of Alejo Mendiola Jr.”

This document states that the bank voluntarily dismisses Alejo Mendiola Jr. from this action, he said.

Fitzgerald asserted that when the original complaint was prepared and filed, the bank and Muna knew that the allegations contained therein were false with respect to Alejo Mendiola Jr. and that there was no probable cause for charging the latter with conversion and threatening to resort to violence.

“Defendants through their actions maliciously allowed local newspapers to obtain copies of the original complaint with the intent to injure and to bring his good name into public disgrace,” he added.