Bank of Saipan v. Ohry

CourtSupreme Court of The Commonwealth of The Northern Mariana Islands
DecidedMarch 25, 2025
Docket2024-SCC-0001-CIV
StatusPublished

This text of Bank of Saipan v. Ohry (Bank of Saipan v. Ohry) is published on Counsel Stack Legal Research, covering Supreme Court of The Commonwealth of The Northern Mariana Islands primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bank of Saipan v. Ohry, (N.M. 2025).

Opinion

E-FILED CNMI SUPREME COURT E-filed: Mar 27 2025 03:27PM Clerk Review: Mar 27 2025 03:27PM Filing ID: 75945065 Case No.: 2024-SCC-0001-CIV Judy Aldan

IN THE Supreme Court OF THE

Commonwealth of the Northern Mariana Islands BANK OF SAIPAN, Plaintiff-Appellant, v. JANE OHRY, Defendant-Appellee. Supreme Court No. 2024-SCC-0001-CIV

SLIP OPINION Cite as: 2025 MP 01 Decided March 27, 2025

CHIEF JUSTICE ALEXANDRO C. CASTRO ASSOCIATE JUSTICE JOHN A. MANGLOÑA ASSOCIATE JUSTICE PERRY B. INOS

Superior Court Civil Case No. 22-0274 Associate Judge Wesley Bogdan, Presiding Bank of Saipan v. Ohry, 2025 MP 01

INOS, J.: ¶1 Appellant Bank of Saipan (“the Bank”) appeals from an order dismissing its complaint seeking to recover money the probate court distributed to Jane Ohry (“Ohry”). Because the statutory procedure for filing objections is mandatory, the court did not err in dismissing the complaint. The court did not abuse its discretion in denying a stipulation for judgment because dismissal of the complaint rendered it moot. For the following reasons, we AFFIRM the dismissal. I. FACTS AND PROCEDURAL HISTORY ¶2 The estate of Macario E. Scaliem (“the estate”) was probated under 8 CMC §§ 2501–2506, the statute governing settlement of estates of limited value. The estate consisted of $4,871.25 in bank accounts with Bank of Guam and Bank Pacific. Macario’s children, as heirs, agreed to distribute the money to their mother, Macario’s surviving domestic partner.1 ¶3 Over ten months after the probate court entered final distribution of the estate, the Bank sued Ohry personally in a separate action, demanding the money distributed to her from the estate. The basis for this claim was the unpaid balance from an unsecured promissory note Macario and the Bank had executed in 2019. The Bank claims that at the time of Macario’s death he owed $6,593.17. Ohry was not a signatory to the note, and the Bank did not file a claim or object to the distribution during the probate proceedings. The complaint alleged that Ohry was a transferee in the probate proceeding, leaving her personally responsible under 8 CMC § 2506 for Macario’s debt up to the amount she received under the decree of distribution. ¶4 Ohry did not answer the complaint on time, and the Bank filed an entry of default and moved for a default judgment. The court rejected both filings and directed the Bank to file a motion for a default hearing. The Bank appealed the court’s rejection of the entry of default, but then voluntarily dismissed that appeal because it had obtained Ohry’s signature on a stipulation for judgment consisting of the money distributed to Ohry plus an additional $322.00 in costs at three percent interest, to be paid in bi-weekly installments of $50.00 to the Bank’s attorney. The Bank submitted this stipulation for judgment to the court, but the court dismissed the complaint without prejudice on the basis that 8 CMC § 2506 requires creditors to submit objections in the probate case rather than pursue separate actions. Finding that the time to file an objection in the underlying probate case had not yet passed, the court reasoned that “where a statutory remedy is provided, the procedure prescribed therein must be strictly pursued to the exclusion of other methods of redress unless the legislature ‘explicitly’

1 Both the probate court and the Bank refer to Ohry as Macario’s “common law wife.” Though they never married, Macario and Ohry were long-term domestic partners, and raised three now-adult children. If Ohry and Macario had been legally married, this case would be moot under 8 CMC § 2602 because a surviving spouse is entitled to a homestead allowance of up to $5,000.00, exempt from and with priority over all claims against the estate. Bank of Saipan v. Ohry, 2025 MP 01

reveals in a statute that it does not intend for such exclusivity.” App. at 18 (quoting White v. Conestoga Title Ins. Co., 617 Pa. 498, 519 (2012)). Because it had dismissed the complaint, the court found the stipulation for judgment to be moot. Instead of returning to probate court, the Bank filed this appeal. II. JURISDICTION ¶5 We have jurisdiction over final judgments of the Superior Court. NMI CONST. art. IV, § 3. A dismissal of an action without prejudice is an appealable final judgment. Dep’t of Pub. Lands v. Blas, 2023 MP 7 ¶ 8. III. ISSUES AND STANDARD OF REVIEW ¶6 The Bank argues two issues on appeal. First, that the Superior Court erred in dismissing the complaint based on an interpretation of 8 CMC § 2506 requiring an objection to be filed in probate. Second, that the Superior Court failed to honor a stipulation for judgment. ¶7 We review questions of statutory interpretation de novo. Commonwealth v. Guerrero, 2014 MP 15 ¶ 21. We review the enforcement of the terms of a stipulation for judgment for abuse of discretion. See Bank of Hawaii v. Tamanrang, 2020 MP 9 ¶ 14. IV. DISCUSSION A. Under 8 CMC § 2506, a party claiming an interest in the estate must file an objection in the probate case. ¶8 8 CMC § 2506 establishes a procedure for a creditor to file a claim (labeled an objection) against a transferee in the probate proceedings for an estate of limited value. The Bank contends that while the statute permits such claims within probate, it does not preclude the filing of a separate action against a transferee outside of probate. The relevant provision states: “any party claiming an interest in the property may, after demand, file an objection to the court setting forth the grounds that entitle him to the property.” 8 CMC § 2506 (emphasis added). When interpreting a statute, if the statutory language gives rise to more than one reasonable interpretation, our duty is “to find [the] interpretation which can most fairly be said to be [e]mbedded in the statute, in the sense of being most harmonious with its scheme and the general purposes that the N.M.I. legislature manifested.” Nakatsukasa v. Superior Court, 1999 MP 25 ¶ 14. ¶9 The word “may” in this context is ambiguous. It is unclear whether it merely grants discretion to file an objection in probate, or allows a party to choose between filing an objection in probate and pursuing a separate action. The Bank argues the latter. Indeed, we have held that “[u]nless the context of its use suggests otherwise, the word ‘may’ in a statute connotes a permissive rather than a mandatory provision.” In re Estate of Rofag, 2 NMI 18, 26 n.6 (1991) (quoting Bauer v. McCoy, 1 CR 248, 268 (D.N.M.I. 1982)). In Rofag, appellants argued that the statutory creation of a separate procedure for determining the validity of a customary adoption meant that the probate court lacked discretion to determine the validity of an adoption during probate proceedings. We disagreed, holding that the statute did not expressly or impliedly provide that the procedure was Bank of Saipan v. Ohry, 2025 MP 01

exclusive. Id. at 26. Hence, while “may” can signify permissiveness, the lesson from Rofag is that we look to statutory context to determine whether the procedure was intended to be exclusive. When the context suggests otherwise, “may” merely indicates discretion. See Halverson v. Slater, 129 F.3d 180, 187– 88 (D.C. Cir. 1997) (“[when] other unambiguous words of limitation [are] included . . . the word ‘may’. . . merely grants discretion . . . the limits of which are ascertained by reference to the section’s other language, its structure, and its purpose.”) ¶ 10 8 CMC §§ 2501–2506 establish a statutory framework for the summary administration of estates of limited value. We have not previously interpreted 8 CMC § 2506, or any related provisions. The source of the statute, Public Law 3- 106, states that the law shall be “liberally construed and applied to promote its underlying purposes and policies.” PL 3-106, ch. 1, § 4(a) (codified at 8 CMC § 2104).

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Bank of Saipan v. Ohry, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bank-of-saipan-v-ohry-nmariana-2025.