Judge: No cause to join Tan Holdings in Saipan Air suit

U.S. District Court for the NMI Chief Judge Ramona V. Manglona has denied Saipan Air Inc.’s motion to join Tan Holdings Corp. as real party in interest in connection with Saipan Air’s racketeering lawsuit against Swift Air executives.

In an order on Tuesday, Manglona said joinder under Federal Rules of Civil Procedure 17(a) would be improper since Tan Holdings is not a real party in interest.

Rule 17(a) requires that “the party who brings an action actually possess, under the substantive law, the right sought to be enforced.”

Manglona said all the claims asserted in Saipan Air’s complaint arise from alleged fraudulent misrepresentations made to an officer of Saipan Air, not Tan Holdings.

Manglona said the ACMI agreement bound Saipan Air, not Tan Holdings, to pay a security deposit.

ACMI refers to an agreement entered by Saipan Air in April 2012 to lease from Swift Air aircraft, crew, maintenance, and insurance.

Tan Holdings Corp., the parent company of Saipan Air, wired $900,000 into a Swift Air account as a security deposit on April 7, 2012. It then wired an additional $376,000 to Swift Air on May 25, 2014.

Manglona said the fact that Saipan Air essentially borrowed money from Tan Holdings to make good on its obligations under the ACMI Agreement doesn’t give Tan Holdings the substantive right to enforce any claim that Saipan Air may have against defendants Boris Van Lier, Donald A. Stukes, and Jeffrey Conry.

Manglona said the defendants are not at risk of being liable to Tan Holdings for fraud and fraud-related claims based on the facts alleged in this action.

On Sept. 25, 2014, the defendants sought for a summary judgment on all claims asserted by Saipan Air. One of their arguments is that Saipan Air cannot show it suffered damages because the wire transfers came from Tan Holdings, not Saipan Air.

Saipan Air responded that Tan Holdings merely advanced the funds, with the understanding that Saipan Air would reimburse them.

Saipan Air also noted that prior to the filing of the lawsuit, Tan Holdings orally assigned its rights to Saipan Air, and that on Oct. 15, 2014, this assignment was memorialized in writing.

Manglona said the parties agree that Saipan Air is the real party in interest and that if they are right, then there is no cause to join Tan Holdings.

Saipan Air has filed a $50 million racketeering lawsuit against Van Lier, Stukes, and Conry for fraudulently inducing the company to transfer money and other assets to Swift Air.

The three were employees, officers, or advisers of Swift Air, an Arizona corporation.