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FHB told to deposit disputed $224K with court
U.S. District Court for the NMI Chief Judge Ramona V. Manglona ordered First Hawaiian Bank yesterday to deposit with the court $224,584.62 in a company’s savings account that are being disputed by some shareholders of Universal Group Development Inc. (Saipan).
Universal Group used to own Hailan Market and Oriental Dumpling Restaurant. Both businesses are now closed.
Manglona directed FHB to deliver the amount to the clerk of court by cashier’s check payable to the U.S. Treasury, together with a copy of her order.
Manglona issued the order after the parties in the lawsuit agreed to deposit funds with the court.
FHB, plaintiff Universal Group Development Inc. (Saipan), and defendant Wanzhong Yu, through their respective counsels, inked the agreement.
Last February, asserting that it is a mere stakeholder, FHB asked the court to permit it to deposit with the clerk of court $224,558.71 in Universal Group’s savings account. Once this is done, FHB should be discharged from the lawsuit initiated by Universal Group, the bank’s lawyer, Richard L. Johnson, said.
Johnson pointed out that Rule 17 of its deposit accounts rules and regulations give the bank a contractual right under the circumstances in this case to deposit with the court the funds in the account.
Universal Group is suing its former president and shareholder, Wanzhong Yu, for conversion and the FHB for breach of contract. Universal Group alleged that Yu and the bank have blocked the company from gaining access to $225,000 of its own funds from a business savings account.
Yu maintains that he is still president of the company and that he was detained in China for 22 months caused by political influence exerted by his former business partners.
Mingnan Jin and Jinwei Guo are claiming that they are the officers and directors of Universal Group, and that Guo is now the sole shareholder.
