The court issued a restraining order to stop the bank’s receiver and trustee from doing a public auction of Emory Mesubed’s house.
The TRO was signed on March 18 and was served to PSB’s Receiver Kaleb Udui, Jr. Regina Butler, Trustee and Francis Remengesau, agent for Udui and Butler, the same day where the house was auctioned.The two-page order of Associate Justice Alexandra F. Foster dated March 23 stated that Mesubed filed a verified complaint for injunctive and declaratory relief against PSB through Udui, Butler and Remengesau on March 18 at 8:20 am.The complaint sought to stop the group from selling his house at 10 am on March 18.The order stated that the court received the complaint at 9:30 am and Justice Foster signed the TRO at 9:45 am on March 18.The order stated that the public auction was held at 10 am on March 18 and the property was sold at 10:05 am.Udui, Butler and Remengesau were served with the restraining order at 10:30 am.The Justice order stated that after receiving the restraining order, the buyer was informed of the legal action.The parties appeared for a hearing on March 23 and PSB through its receiver, trustee and agent, agreed to stop transfer of the deed and any eviction against Mesubed pending resolution of his civil action.Udui, Butler and Remengesau allowed Mesubed and his family to remain in the house while the civil action is still pending.It was also agreed by both parties that Mesubed will file an amended complaint and PSB will file its answer within 30 days.Mesubed in his amended complaint filed on March 23, stated that he signed a loan agreement with PSB for the amount of $279,934.70 on July 1, 2005.Mesubed stated in his complaint that no security was pledged to secure the July 1, 2005 loan.The July 1, 2005 loan agreement did not contain any payment terms.Mesubed signed another loan agreement with PSB in January and August of 2006.The complaint stated that a “Notice of Default and Sale” in regards to Mesubed’s loan was published in local papers on February 5.The complaint stated that PSB through Udui and Butler informed the public that Mesubed’s 900 square meters property in Kesebelau, Ked, Airai is for sale due to Mesubed’s failure to pay his loan with a delinquent balance of $9,750 as of April 16, 2007.Mesubed is seeking for a declaration that the Trust Deed is null and void; that the putative sale of his property on March 18 is null and void; that any amount owned on his loans is significantly lower than that claimed by PSB and an injunction preventing any further action in regards to the putative sale of Mesubed’s house on March 18.
