Union Bank files cross-claim vs First Hawaiian Bank

Union Bank, formerly known as Union Bank of California, has filed a cross-claim complaint against First Hawaiian Bank in connection with Saipan Mayor Donald G. Flores’ lawsuit against the two banks.

Union Bank, through counsel Sean E. Frink, filed the complaint against FHB for indemnification, and contributory fault and contribution.

Frink asked the U.S. District Court for the NMI to held FHB responsible for the payment of all damages claimed by Flores.

Frink said if Union Bank is found liable to Flores in any amount, the damages must be apportioned according to the respective liability of all of the parties in the lawsuit.

Flores is suing the two banks for allegedly refusing to return the principal and interest earned of a Time Certificate of Deposit in the amount of $200,000 that he purchased from the then Union Bank Saipan Branch in 1993.

Flores is suing the banks for breach of contract, unjust enrichment, negligence or gross negligence, breach of fiduciary duty, and fraud.

On Nov. 15, 2001, Union Bank reportedly sold all assets and liabilities of its Saipan branch office to FHB.

FHB then moved to dismiss the lawsuit. UBC joined in the motion to dismiss.

Last month, U.S. District Court for the NMI Chief Judge Ramona V. Manglona granted FHB’s motion to dismiss Flores’ all causes of action.

Manglona dismissed with prejudice Flores’ claims against Union Bank for unjust enrichment and gross negligence. Manglona also dismissed without prejudice the mayor’s claims for breach of fiduciary duty and fraud against Union Bank.

The judge dismissed with prejudice Flores’ claims of unjust enrichment and gross negligence against FHB. She dismissed without prejudice the mayor’s all other claims against the bank.

Dismissal with prejudice means the case cannot be re-opened. Dismissal without prejudice allows plaintiff to re-file a new suit on the same claim/s.

Flores then filed a first amended complaint against the two banks.

In Union Bank’s answer and cross claim, Frink said without admitting any liability, if liability were or is found against Union Bank, it is entitled to indemnity against FHB, as well as all co-defendants, under contractual and/or common law principles.

Frink said without admitting any liability, Union Bank has a right to apportionment of damages and contribution from FHB for any damages for which Union Bank may ultimately be found liable, if any.