Chief Justice Arthur Ngiraklsong, Associate Justice Alexandra F. Foster and Associate Justice Pro Tem Honora E. Remengesau Rudimch in their opinion order on November 19, 2008, affirmed the trial court’s decision which ruled in favor of defendants Tarita Holm, Thomas Rumong, Morley Elbelau, Brother Kumaichi, Augustina Elechuus, Nanumi Toribiong, Demei Elechuus and Jeffrey Tarkong.
The Justices in affirming Associate Justice Lourdes F. Materne’s decision said that PSB lacked standing to pursue its claims against the defendants in court.
PSB filed separate complaints against defendants to enforce payments from their debts.
The Supreme Court order states that prior to the filing of the suits, PSB closed in November 2006 and a series of civil and criminal proceedings were instituted regarding alleged mismanagement and other issues.
Kaleb Udui Jr. was appointed Receiver of the defunct bank on November 7, 2006.
PSB did not file a motion to substitute as it did in other matters, requesting that the Court substitute Pacific Savings Bank by and through its Receiver Kaleb Udui as the plaintiff in the matter.
The trial court issued later an order dismissing the cases with prejudice on the basis that it lacked subject matter jurisdiction.
The trial court found that PSB lacked standing to pursue its claims in court.
PSB filed an appeal and argued that the trial court erred in issuing its sua sponte order of dismissal because the order equates to an abuse of discretion and it violates Civil Rules 7, 17 (a) and the due process of the Constitution.
The Supreme Court in affirming the trial court’s decisions said that the trial court did not err in dismissing the case sua sponte without offering PSB an opportunity to be heard, because the court lacked jurisdiction to hear the matter.
The Supreme Court added that the court reviewed the trial court’s findings of fact for clear error.
“The trial court’s conclusions of law are reviewed de novo.”the Supreme Court said.
The complaint against Holm was filed on May 18, 2007 and the matter was dismissed on January 10, 2008.
PSB filed a complaint against Rumong on July 19, 2007 and the case was dismissed on December 31, 2007. Elbelau’s case was filed on September 2006 and the matter was dismissed on January 10, 2008.
Kumaichi’s lawsuit was filed on October 25, 2007 and it was dismissed on January 2, 2008. Augustina Elechuus and Toribiong’s cases were filed on June 2007 and were dismissed on December 31, 2007.
Demei Elechuus case was filed in September 2007 and was dismissed in December 31 while Tarkong’s case was filed in December 9, 2004 and was dismissed on January 9, 2008.
