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Jury trial starts in lawsuit over alleged arson at clothing store
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Posted on Jan 30 2012
A federal jury trial began yesterday in a lawsuit filed by an insurance company that is suing the owner of a clothing store in Garapan over the alleged intentional burning of the establishment to collect $404,718.53 in fire insurance.
When Saipan Tribune left the courtroom yesterday afternoon, U.S. District Court for the NMI Chief Judge Ramona V. Manglona was still selecting the members of the jury.
Once a jury is impaneled, jury instructions then opening statements normally follow.
Attorney Richard W. Pierce is representing FirstNet Insurance Co. Attorneys Ramon Quichocho and Michael Dotts are counsels for Zhen Rui Brother Corp. that owns the former BL’s Clothing Store.
A fire broke out at the BL Clothing Store on Oct. 30, 2010.
In March 2011, fire policy insurer FirstNet sued Zhen Rui Brother Corp. for allegedly deliberately setting off the fire so that the owner could claim $404,718.53 in insurance proceeds.
Zhen Rui Brother Corp later filed a counterclaim against FirstNet, alleging breach of contract, breach of implied covenant of good faith and fair dealing, insurance bad faith, and unfair or deceptive business practices.
In December, Manglona denied Zhen Rui Brother Corp.’s motion for summary judgment, ruling that FirstNet has presented more than enough evidence to establish a dispute over liability for the jury to resolve at trial.
Manglona said it is undisputed that Zhen Rui Brother Corp.’s BL Clothing Store suffered substantial fire loss only a few months after the company took out the insurance policy.
Manglona said that firefighters had to break open the doors of the building to gain access and only the store’s owner, Zheng Biao, and an employee had keys.
