Widow of ex-mayor Flores opposes moving her $40M lawsuit vs bank to federal court

The widow of former Saipan mayor Donald Glenn P. Flores has opposed MUFG Union Bank’s motion to move her $40-million lawsuit against the back to the federal court.

Cecilia U. Flores is suing the bank for fraud over a bank manager’s alleged unauthorized release of Donald Flores’ money from his $200,000 time certificate of deposit to a person representing to be him.

Cecilia U. Flores, through counsel Juan T. Lizama, asserted that her case was filed in the Superior Court and the basis for removal under the Edge Act is not enough to give the U.S. District Court for the NMI jurisdiction over the lawsuit.

Lizama argued that Union Bank did not raise the issues of diversity of citizenship or federal incorporation with the underlying federal law violation or federal question as basis for federal jurisdiction.

Lizama said it is very clear from the facts that there is no complete diversity of citizenship to confer federal court jurisdiction since Flores and two of the defendants are from Saipan.

The lawyer said the Edge Act is not a basis for moving the case to the federal court.

Lizama said Flores’ claims for fraudulent concealment does not fall within the meaning of “traditional banking activity” to require removal to federal court jurisdiction.

Cecilia Flores is suing Union Bank of California and its former employees, Victoria Borja Concepcion and Ken Kato.

Flores asked the Superior Court to hold Union Bank liable to pay her $20 million in damages. She also wants Concepcion and Kato to be held responsible for paying her $20 million in damages. She is demanding payment for court costs and attorney’s fees.

MUFG Union Bank recently asked to move the lawsuit to the federal court, with MUFG Union Bank counsel Sean Frink asserting that the Edge Act expressly provides for removal of cases commenced in state court that met its jurisdictional requirements “at any time before the trial.”

Frink said Kato and Concepcion agreed to move the lawsuit to the federal court.

Frink said Flores’ lawsuit is related to the previously filed lawsuit filed by the former mayor against Union Bank and First Hawaiian Bank, which was dismissed when the federal court granted the bank’s motion for summary judgment based upon the statute of limitation and laches grounds.

Frink said that lawsuit is pending on appeal before the U.S. Court of Appeals for the Ninth Circuit.

Frink said Flores’ claims are based on the same or similar factual allegations that have been asserted against Union Bank in the pending appeal.

Donald Flores passed away in June 2014.

In 2011, Donald filed a lawsuit in federal court against Union Bank of California and FHB for allegedly refusing to return the principal and interest earned on the certificate of deposit.