Son of late Saipan mayor cannot pursue claim

The federal court has ruled that because estates are not “persons” under the CNMI Consumer Protection Act, Derron Gerald Flores, the son of former Saipan mayor Donald G. Flores, cannot pursue a private cause of action against MUFG Union Bank N.A.

Derron, as administrator of the estate of Donald Flores, is suing MUFG Union Bank to collect principal and interest on a $200,000, 32-day certificate of deposit 24 years after his father took it out at Union Bank in 1993.

In agreeing with Union Bank, U.S. District Court for the NMI Chief Judge Ramona V. Manglona said Donald Flores was a “person” under the CPA at the time he filed the lawsuit, but the CPA cause of action abated upon his death.

Only “persons” aggrieved as a result of a violation of the CPA may bring a CPA private cause of action, said Manglona in granting in part and in denying in part Union Bank’s motion for summary judgment as to Derron’s claims of violation of the CPA and roll over interest rate.

Deron, through counsel Juan T. Lizama, last week asked the court to reconsider its decision.

Lizama said the certificate of deposit and Union Bank’s roll over interest promise to Flores constitute one agreement between the parties and is their total bargain.

Lizama said abatement is a common law rule and it must be determined under common law if Flores’ claim falls under any exception to the abatement rule.

The lawyer said the U.S. Court of Appeals for the Ninth Circuit has already heard the issue of abatement and did not dismiss Flores’ CPA claim.

In her order, Manglona said the CPA defines a “person” to be “natural persons, corporations, firms, partnerships, joint stock companies, and associations or other organizations of persons.”

Manglona said while a valid argument could be made that “estates” fall into the former definition of “persons” as a legal entity, it is undisputed that it cannot fall within the current definition.

More significantly, the judge said, the Superior Court previously looked at this issue and determined that estates are not “persons” under the CPA.

As such, Manglona said, Flores’ estate is not entitled to initiate a claim or obtain relief under the CPA under the guise of “other organizations of persons.”

Manglona said the opportunity to allow a CPA claim to survive the death of a consumer rightfully belongs to the Legislature.