ASSOCIATE Justice Alexandro C. Castro misapprehended the facts and the law in the Bank of Saipan receivership case, according to the Attorney General’s Office yesterday.
“No receiver, no court, and no judge” was the result of Castro’s order removing Randall T. Fennell as temporary receiver combined with Bank of Saipan, Inc.’s motion to disqualify Superior Court Presiding Judge Edward Manibusan, AGO said.
Assistant Attorney General Allan L. Dollison said the only way there can be a receiver is if the CNMI Supreme Court vacates Castro’s order.
Castro issued the order for Fennell’s removal on Wednesday morning without conducting a hearing on the Calvo & Clark law firm’s motion to replace the temporary receiver.
In the motion for reconsideration, Dollison said there was a multitude of hearings set in the receivership case before Manibusan on Wednesday at 10 a.m.
Dollison said as the Superior Court literally opened its door on Wednesday, Calvo & Clark, on behalf of Bank of Saipan, Inc., filed a “two-page plus one line motion” to disqualify Manibusan from hearing the receivership.
At the hearing, Manibusan said the court would appoint another judge to hear and rule on the motion to disqualify him.
Dollison said the judge expressly stated that Fennell would remain as the receiver.
But as the lawyers were walking out of the courthouse, Dollison said they learned about Castro’s order which was filed that day at 10:10 a.m.
The high court, he said, ordered that the receivership proceedings go forward, but refused to appoint a new receiver and left the choice to the Superior Court.
The order removed Fennell and his counsel, Richard W. Pierce, but provided no guidance as to why the high court had taken such action and what was the basis of removing them from the case, AGO said.
Dollison said had a motion to disqualify Manibusan not been filed, then the review and motions hearings would have gone forward.
However, he said, the combination of Bank of Saipan, Inc.’s motion to disqualify and Castro’s order removing Fennell “has left the case without a receiver.”
He said Bank of Saipan’s disqualification filings have temporarily left the case without a judge and without a court to hear the urgent matters that must be addressed in the case.
Dollison said the high court should reconsider its order.
“There are court-issued powers given to the receiver, with no receiver to carry them out,” he said.
Dollison said Manibusan was unaware that the Supreme Court had issued an order and Castro was also unaware that Bank of Saipan had sought the disqualification of Manibusan.
Dollison said the high court should stay Castro’s order until such time the Superior Court rules on the motion for Manibusan’s disqualification.
