THE federal court has enjoined the CNMI government and its agents from conducting any further proceedings in the CNMI Superior Court or Probate Court with respect to their legal dispute against the Carlsmith law firm.
U.S. District Court Judge Alex R. Munson issued a temporary restraining order against the CNMI government pending a hearing and decision on Carlsmith’s motion for a preliminary injunction.
Munson issued the TRO following a stipulation signed by the parties in the Carlsmith’s lawsuit filed in federal court against the CNMI and Deputy Attorney General Ramona V. Manglona.
Pending a hearing and decision on Carlsmith’s motion for preliminary injunction, Munson said the CNMI need not file any responsive pleadings to any of the motions filed against the government by Carlsmith in the Superior or Probate Courts.
Munson said Carlsmith and their lawyers should also not take any action in the Superior or Probate Courts.
The judge ordered Carlsmith and the CNMI to promptly notify the Superior and Probate Courts of the order that any and all proceedings with respect to the probate petition are stayed until a hearing on Carlsmith’s motion by the federal court.
Munson set the preliminary injunction hearing for Aug. 1. The judge also set the hearing on the same day with respect to the CNMI’s motion to dismiss the complaint.
Last May 14, Carlsmith and one of its members filed separate but similar lawsuits against the CNMI government, Manglona and a law firm for allegedly threatening to sue them if they would not pay $5.5 million for their involvement in the Larry Hillblom estate probate.
Carlsmith Ball LLP and its member in California, Donald C. Williams, alleged in their complaints that the CNMI government’s demands and threatened litigation arise out of Carlsmith’s brief representation of Bank of Saipan as then executor in 1995 and early 1996 in the Hillblom probate.
The plaintiffs named Manglona as among the defendants for her alleged participation in the demands and threatened actions against Carlsmith and in retaining the California-based co-defendant law firm of Walsworth, Franklin, Bevins & Mccall.
But the CNMI government later also sued Carlsmith law and four of its partners for allegedly committing fraud on the Probate Court pertaining to their involvement in the Hillblom estate probate.
Carlsmith, through attorney David A. Battaglia, said the court should issue a preliminary injunction against the defendants from proceeding with their revised petition in the Probate Court.
“The Probate Court is a real party in interest in the CNMI lawsuit, and is a potential witness on matters ranging from the statute limitations to resulting damages,” said Battaglia.
Battaglia said it would violate Carlsmith’s constitutional rights to permit the revised petition to be decided by the same court, the Probate Court, that is a direct and interested party in the outcome of the proceeding.
“To make matters worse, the CNMI is well aware that this judge repeatedly has acted to deprive Carlsmith of its constitutional right to trial by jury and its right to counsel of its choice, recently adjudicating Carlsmith liable for ‘fraud’ at a hearing held on a few hours notice without even the semblance of an evidentiary hearing,” Battaglia said, referring to Associate Justice Alexandro C. Castro.
Carlsmith filed yesterday a motion to recuse or disqualify Castro from presiding over the CNMI’s lawsuit against the law firm. Battaglia said Castro’s involvement in soliciting donations for the judicial fund, which directly benefited the CNMI judiciary, “runs afoul of established rules covering judicial conduct.”
