FirstNet Insurance, through attorney Richard W. Pierce, said the fire at BL Clothing Store, operated by Zheng Rui Brother Corp., the defendant, was caused by arson as confirmed by a professional in the field who investigated the incident.
Late on Oct. 29, 2010, or early Oct. 30, 2010, the complaint said one or more persons using an accelerant, ignited multiple fires within BL Clothing Store, located at JP Construction Corp. Building.
The fire quickly consumed the contents and scorched the walls and resulted in an explosion, the complaint stated.
When firefighters arrived at the scene, they forced the locked doors to gain entry to the clothing store.
On Dec. 27, 2010, Zheng Rui Brother Corp. filed a proof of loss with Equitable Adjusting and Service Company on Guam.
Zheng Rui Brother Corp. valued its lost inventory and equipment at $404,718.53, and it claimed for that amount against FirstNet Insurance Co. under the FirstNet Policy, the complaint stated.
Prior and subsequent to the receipt of the proof of loss, Pierce said FirstNet Insurance “diligently attempted to investigate and uncover the facts associated with the proof of loss.”
Zheng Rui Brother Corp., however, “failed to present documentation, such as checks, invoices and shipping documents, which would support the defendant’s inventory sheet from May 31, 2010 or the current value and quantity of the items allegedly destroyed by fire,” the complaint said.
Earlier, James Biao, owner of BL Clothing Store and BL Tailor Shop, told Variety that the allegation that he intentionally set his store on fire was “not funny.”
Through an interpreter, Biao said he did not plan to burn his store to claim insurance.
At that time of the interview, days after the incident, Biao said he could not recall the total amount of new clothing that arrived from China as well as the stock in the storage because the invoice was among those burned.
FirstNet Insurance Company is asking the U.S. District Court for the NMI for a declaration of the rights and obligations of the parties under the FirstNet Policy; judgment discharging FirstNet Insurance Company from any obligation to Zheng Rui Brother Corp. under the FirstNet Policy on the submitted proof of loss; and for its costs, disbursements and attorney’s fees incurred, and other relief.
