Counsels complete closing arguments

The counsels completed Friday afternoon the closing arguments in the ongoing federal jury trial of a lawsuit filed by FirstNet Insurance Co. against the owner of a clothing store in Garapan that went up in flames in 2010.

U.S. District Court for the NMI Chief Judge Ramona V. Manglona ordered the seven jurors to start deliberating today. When Saipan Tribune left the courtroom at 5:15pm Friday, Manglona was starting to give the jury instructions.

Zhen Rui Brother Corp., owner of BL Clothing Store that was burned, rested Friday afternoon after their last witness—Zheng Biao, the sole shareholder of the company—completed his testimony.

Zhen Rui Brother also called on Friday to the witness stand a neighbor of Biao, who testified that he saw Biao at his house on the night of Oct. 29, 2010.

The fire broke out in the early morning of Oct. 30, 2010.

FirstNet is suing Zhen Rui Brother Corp. for allegedly deliberately setting off the fire so that Biao could claim $414,718.53 in insurance proceeds. Zhen Rui Brother Corp. is countersuing FirstNet for breach of contract for refusing to pay the insurance policy.

At his closing arguments, attorney Richard W. Pierce, counsel for FirstNet, described Biao as a con-man who filed this fraudulent insurance claim.

Pierce said the trails of fabric that had gasoline showed there were multiple fires as the intent was clearly to burn the place.

Pierce said as Fire Lt. Kevin Aldan had testified it looked like what happened at BL Clothing Store was a staged break-in.

Pierce said it doesn’t make sense that a burglar would burn several areas of a store all for $200, which was apparently the daily sales of the establishment.

“I ask you who had the key for the cash register?” the lawyer told the jurors. He said Biao admitted he had the key for the cash register then.

A photo of the cash register showed that apparently it was opened with a shovel used by firefighters. There were coins remaining but no paper bills.

Attorney Michael Dotts, counsel for Zhen Rui Brother Corp., in the closing arguments asserted that FirstNet has failed to prove its burden that Biao or Zhen Rui Brother Corp. burned the store to collect insurance proceeds.

Dotts said FirstNet also failed to prove that Biao or Zhen Rui Brother Corp. materially misrepresented in the filing of inventory to support the insurance claim.

Dotts said instead of paying Biao, FirstNet instead sued his company.

Dotts suggested the jurors that they have three options in calculating the damages that FirstNet owed to Zhen Rui Brother Corp.

Dotts said the three options for reasonable damages are $186,128.16; $310,213.59; and $404,718.53.

In the continuation of his testimony on Friday, Biao said he did not collect the daily sales on Friday, Oct. 29, 2010 or the day before the fire broke out.

During direct examination by Zhen Rui Brother Corp.’s another counsel, Ramon Quichocho, Biao testified that aside from fire insurance, he also purchased earthquake and typhoon insurance or general liability insurance.

Biao said his decision to purchase insurances was made upon the suggestion of the building owner after his store was burglarized.

Biao denied he burned his own store. He also stated he does not know who burned his store.

Biao’s neighbor, a local man, said he and his family were having barbecue the night of Oct. 29, 2010 when Biao came aboard his car so he invited him to join them.

The neighbor said Biao refused, saying he has work the following day.

The witness said they finished the family gathering at about 12 midnight and that he didn’t see Biao leaving his house.