Arceo v. CULGUAM, Inc.

Opinion

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Mr IN THE SUPERIOR COURT OF GUAM GUAM

JUANITA ARCEO, CIVIL CASE NO. no. CV0397-20

Plaintim Plaintiff, DECISION DENYING DECISION AND ORDER DENYING vs. MOTION FOR REVIEW REVIEW BY BYAND HEARING HEARING BEFORE BEFORE A SUPERIOR CULGUAM, CULGUAM,INC. INC.doing doingbusiness business as COST- COURT COURT JUDGE U-LESS,

Defendants Defendants..

Defendant CULGuam, Inc. Defendant CULGuam, Inc. doing doing business businessasasCost-U-Less Cost-U-Less("CULGuam") ("CULGuam") moved for a

Superior Court Judge, rather than Judge, rather than aaMagistrate Magistrate Judge, Judge,totoreview review its its January January31, 31,2025 2025Motion Motion for for

Reconsideration Reconsideration of ofthe the Order Order Granting Granting Sanctions. Sanctions. The The Order OrderGranting GrantingSanctions, Sanctions, issued issued by

Magistrate Magistrate Judge Judge Jonathan Quan, Quam,sanctioned sanctionedCULGuam CULGuamand andits itsattorneys attorneyswith with discovery discovery

violations. violations. Having Havingreviewed reviewedCULGuam's CULGuam'spresent presentmotion motionseeking seekingfor foraaSuperior Superior Court Court Judge Judge to

evaluate the Motion Motion for for Reconsideration, Reconsideration,the theCourt Courtdetermines determinesthat that the the matter matter remains properly

with Magistrate with Magistrate Judge Judge Quan.

I. 1. PROCEDURAL BACKGROUND

Following Followingdiscovery discoveryrevealing revealingthat thatCULGuam CULGuamhad hadan anoutside outsideinsurance insurance company, which which

itit never disclosed during discovery or at any point through this case's case's two twojury jury trials, the Court

referred referred post-judgment post-judgment discovery proceedings to Magistrate Judge Judge Quan. Quam.Order OrderReferring Refening Mot. Mot.

to Magistrate (May 13, Magistrate (May 2024). The 13, 2024). The Magistrate Magistrate Judge heardPlaintiff Judge heard PlaintiffArceo's Arced's Motion Motion to Compel

Discovery and for Leave to Take Depositions and andArceo's Arceo's Motion for Leave to Amend CV0397-20 DECISION AND ORDER DENYING MOTION FOR REVIEW BY AND Page2 Page HEARING BEFORE A SUPERIOR SUPERIOR COURT JUDGE

Complaint Complaint on on September 16, 2024. September 16, 2024. The The Magistrate Magistrate Judge issued an Judge issued an Order Order Re: Re: Plaintiffs Plaintiff" sMotion Motion

to Compel Discovery and for Leave to Amend Complaint on January 21, 2025. 2025. This Order

included included sanctions CULGuam and its sanctions upon CULGuam its attorneys, Camacho Law Group, pursuant to Camacho Calvo Law

Guam Rules Rules of of Civil Procedure 37. CULGuam Procedure 26 and 37. CULGuam and and CC Law Law both both moved moved to reconsider

the Magistrate Judge's Order. This This Court Courtsubsequently subsequently issued issued aa Notice Notice to to Parties Parties on February

10, I 2025 stating that that the thereconsideration reconsideration motions motions would remain with with the the Magistrate Magistrate Judge. Judge.

After filing filing its its Motion Motion for for Reconsideration, Reconsideration, CULGuam filed filed a Motion Motion for Review by and

Hearing Hearing Before Before aa Superior Superior Court Court Judge. Judge. CULGuam CULGuamargues argues that that this this Court Court should should defer to the

Federal Rules of of Civil CivilProcedure Procedure (FRCP) (FRCP)72 72 and and 73 73 to to determine determine that that the the Magistrate Magistrate Judge Judge

cannot retain jurisdiction jurisdiction to to reconsider reconsider his own own order. The The Defendants Defendants request request that the Court

withdraw the withdraw the second referral referral to the Magistrate Magistrate Judge and and reassign reassignthe theMotion Motion for for

Reconsideration to aa Superior Reconsideration to SuperiorCourt CourtJudge Judgefor foradjudication. adjudication.Def.'s Def.'sMot. Mot. Review Review && Hr'g Hr'g Before

Superior Cr. Judge Superior Ct. Judge atate (Mar. 12, 4 (Mar. 12, 2025); 2025),CC CCLaw LawJoinder Joiner in Def.'s Mot. in Def.'s Hr'g Before & Hr'g Review & Mot. Review Before

Superior Ct. Judge Judge at at 22(Mar. (Mar. 14, 14, 2025). z025)_11 Arceo filed an opposition to these Motions Arceo filed an opposition to these Motions arguing

that the Superior Court has the the inherent inherent power to manage this litigation, manage this litigation, that that the the Federal Rules

cited are instructive instructive but not binding, binding, that that this this Court Court has has already decided that the reconsideration reconsideration

motions would would remain with the Magistrate Judge, Judge, and and that that CULGuam CULGuam and and CC CC Law's Law's Motions

are untimely. Pl.'s are untimely. Opp'n to Pl.'s Opp'n to De£'s Def.'s Mot. Mot.Review. Review. &&Hr'g Hr'gBefore BeforeSuperior SuperiorCt. Ct.Judge Judge at at 1, I, 33 (Apr. (Apr.

7, 7, 2025). 2025).

11 CC CC Law Law filed filed a non-substantive non-substantivejoinder. jointer. CV0397-20 DECISION AND ORDER DENYING MOTION FOR REVIEW BY AND Page3 Page HEARING BEFORE A SUPERIOR SUPERIOR COURT COURT JUDGE

II. 11. BY AND HEARING BEFORE A SUPERIOR COURT JUDGE REVIEW BY

their Motions on The parties make their on the basis of of the Federal Rules of Civil Procedure

("FRCP") ("FRCP") 72 72 and and 73. FRCP FRCP 72 72 details details that for both both non-dispositive non-dispositive and and dispositive dispositive matters, if a

party party moves in in a timely timely manner, judge must review manner, the district judge review objections. They Theyargue argue that that these these

Rules Rules are are instructive instructive because because they were "devised "devised to to safeguard safeguard due due process process and other

constitutional considerations" associated with with how how magistrate magistrate judges judges handle handle matters matters other other than

tuals. trials. Def.'s Def.'s Mot. Mot. Review Review &&Hr'g Hr'gBefore BeforeSuperior Superiorct. Ct.Judge Judge at at 3.

In In making making their their arguments, arguments, parties recognize, however, that when these provisions provisions were

added to the FRCP in 1983, 1983, the Guam Supreme Court declined declined to to adopt adopt them them because because there was

no local magistrate statute. statute. Id. at 2. 2. Further, Further, the Guam Rules of of Civil Civil Procedure Procedure are in fact

adopted by the adopted by the Guam Guam Supreme SupremeCourt Court pursuant pursuant to to its its authority authority under under 48 48 U.S.C. U.S.C. §§ 1424-l(a)(6). 1424-1(a)(6).

The revised Guam Rules of of Civil Civil Procedure Procedure and and Local Local Rules Rules of of the the Superior Superior Court were adopted

by the Guam Supreme Court Court on on May May 3, 3, 2007, twenty-four twenty-four years years aRea after the addition ofFRCP FRCP 72

and 73. 73. GRCP GRCP Preamble. Preamble. Given Giventhat that the the Guam Guam Supreme the opportunity Supreme Court had the oppommity to adopt

rules similar similar to to FRCP FRCP 72 and 73 73 but but decided decidednot not to, to, the theCourt Court declines declinestotofollow follow the guidance guidance of of

FRCP FRCP 72 and 73 73 here. here. Regardless of of if if the the parties parties have timely timely objected objected to to Magistrate Magistrate Judge Judge

Quan's Order, the Court finds that the arguments arguments presented presentedfor for this this Court Court to to follow follow FRCP FRCP 72 and

73 provide provide little little to to no no persuasive persuasive value.

III. MAGISTRATE JUDGE'S JU])GE'S AUTHORITY

This CouN has previously Court has previously determined that that the theMotion Motion for Reconsideration Reconsideration was to remain

with Magistrate with Magistrate Judge Quamininits Judge Quan itsNotice Noticeto toParties. Parties. CULGuam and CC Law have argued in in

their briefs that their briefs the Magistrate that the Magistrate Judge Judge does doesnot nothave adequateauthority haveadequate under7 7GCA authorityunder GCA§§440l(c) 4401 to to

issue sanctions sanctions as ashis hisauthority authorityisislimited limited to to "pretrial" "pretrial" matters, matters, and that if the Court is attempting CV0397-20 DECISION AND ORDER DENYING DENYING MOTION FOR REVIEW REVIEW BY AND Page4 Page HEARING BEFORE A SUPERIOR SUPERIOR COURT COURT JUDGE

to permit permit the the Magistrate Magistrate Judge's Judge's actions actions through through him himacting actingas as aa Special Special Master, Master, the the process process was

procedurally deficient. Def. procedurally Def. CULGuam CULGuamMot. Mot. Recons. Recons. Order OrderGrant. Grant. Sanctions Sanctions at 13 (Jan. at 13 (Jan. 31,

2025); Mem. P. & A. in Supp. CC Law 2025), Law Mot. Mot. Recons. Recons. Jan. Jan. 21, & Order 21, 2025 Dec. & Order at 5 (Jan. 31,

2025). The The Court Court takes takes this opportunity opportunity to to determine determine Magistrate Judge Quan's authority Judge Quan's authority prior prior to

the disposition of these reconsideration reconsideration motions.

7 7 GCA GCA §440l(c) § 440 I (c)details detailsmatters matters magistrate judges have magistrate judges have authority authority over. over. CC CC Law Law points points

to GCA § to 77 GCA § 440l(c)(7), 4401(c)(7), (12), (12), and and(14) (14)ininparticular. particular. Mem. Men. P. & A. P. & in Supp. A. in CC Law Supp. CC Law Mot. Mot.

Recons. Jan. Jan. 21, 21, 2025 2025 Dec. Dec. & & Order at 4. These These sections sections state state that magistrate judges have the

ability abilityto toserve serveas as Special Special Masters Masters upon upon appointment appointment by by the the Presiding Presiding Judge, Judge; that magistrate

judges can preside over initial initial scheduling scheduling conferences conferences in civil matters matters to to include include but not limited

to initial pretrial conferences, case scheduling, discovery disputes, motions, and settlement

efforts, efforts; and and that that they they may hear hear and determine pretrial matters matters other than case dispositive case dispositive

motions, respectively. CULGuam CULGuamargues arguesthat that the the only onlycircumstance circumstance in in which which aa magistrate magistrate judge

may exercise authority to impose sanctions under under GRCP 377 is when appointed as a Special

Master under GRCP 53, which this Court did not Master not do. Def. CULGuam do. Def. Mot. Recons. Order CULGuam Mot.

13-14. ItIt argues further that this case does not fall within the category of Grant. Sanctions at 13-14.

"collections matters" that are handled by "collections by magistrate magistrate judges. Plaintiff Arceo judges. Id. at 14. Plaintiff Arceo argues that

magistrate judges have magistrate judges have authority authority to to review review discovery discovery disputes disputes and and motions motions under under 7 GCA §§ 7 GCA

4401(c)(12). 440l(c)(12).

The Court Court starts starts by confirming confirmingthat that Magistrate MagistrateJudge Judge was was not not appointed appointed as as a Special Special

Master. However, However,the the Court Courtmaintains maintains its its belief beliefthat that the the scope of of work referred to the Magistrate

Judge falls within Judge falls within the authority authority for for magistrate magistrate judges judges to decide. decide. Magistrate Magistrate judges judges in in Guam Guam have

greater latitude than what what is is prescribed prescribed by by the thefederal federal rules. rules. Guam statutes statutesallow allow for for this CV0397-20 DECISION AND ORDER DENYING DECISION DENYING MOTION FOR REVIEW BY AND Page 5 Page HEARING BEFORE A SUPERIOR SUPERIOR COURT COURT JUDGE

flexibility when, flexibility like in when, like in 77 GCA GCA §440l(c)(l2), 440l(c)(l2),the thescope scopeof responsibilities is ofresponsibilities is prefaced by prefaced by

language like like "but not limited to." Magistrate Magistratejudges judges are are routinely routinely tasked tasked with with presiding over

matters involving discovery. matters involving discovery. Per Per77 GCA GCA §§ 4401(c)(12) 440l(c)(l2) magistrate judges preside magistrate judges preside over initial over initial

scheduling conferences conferencesin incivil civil matters including including discovery disputes and discovery disputes and under under 7 7 GCA GCA §§

4401(c)(11) 440l(c)(l l) magistratejudges judges preside presideover overdiscovery discovery motions motions in in criminal criminal matters. matters. The Court

finds that its referral of ofpost-judgment post-judgment discovery discoveryproceedings proceedings isis in in alignment alignment with withGuam Guam statutes statutes

and regular practices at at the the Guam Guam Superior Superior Court Court which refer discovery discovery matters matters to magistrate

judges. The The Court Courtdoes does not not believe believeititwas wasnecessary necessary for forthe the Magistrate MagistrateJudge Judge to to be be appointed appointed as as

a special master master since since magistrate magistratejudges judges have havethe theauthority authority to hear these these matters matters without without

undergoing undergoing that process. Accordingly, Accordingly, the the Court Court finds finds that that the the Magistrate Magistrate Judge Judge had the

authority to hear these these post-judgment post-judgment discovery proceedings and stands by its Notice to Parties.

IV. v CONCLUSION CONCLUSION AND ORDER

The Court DENIES CULGuam and CC Law's Law's Motions Motions for for Review by and Hearing

Before Before aa Superior SuperiorCourt CourtJudge Judge on onthe the basis basis that that Guam Guam does does not not adopt adopt FRCP FRCP 72 and 73, and that

Magistrate Judge had the Magistrate had adequate adequateauthority authority to to hear the the post-judgment post-judgment discovery discovery motions and to

order discovery sanctions.

,,,.,- so ORDERED this S0 J 2,0 Wl--L 2-D J UAL 9 2025.

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