Bukikosa v. Bello

CourtSuperior Court of Guam
DecidedSeptember 20, 2019
DocketCV0408-17
StatusUnknown

This text of Bukikosa v. Bello (Bukikosa v. Bello) is published on Counsel Stack Legal Research, covering Superior Court of Guam primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bukikosa v. Bello, (superctguam 2019).

Opinion

. . ThEEE20 10 2

6 IN THE SUPERIOR COURT OF GUAM 7 CARLINE BELLO BUKIKOSA and BELLA ) Case No. CV0408-17 $ ) BELLO MARTINEZ, ) 9 ) ) DECISION AND ORDER Plaintiffs, ) V. ) 11 ) ) 12 BENNY BENAVENTE BELLO, JOSEPHINE 13 BELLO-DUENAS, GEORGE BENAVENTE ) BELLO, BELLO ENTERPRISES, BELLO ) 14 FAMILY GROUP L.L.C., BELLO HOSPITALITY GROUP, and DOES IV XV,) -

) 16 Defendants. ) INTRODUCTION 1$ This matter came before the Honorable Alberto C. Lamorena, III on June 24, 2019 for a 19 hearing on a submission by Defendant Benny Bello (“Benny”) of a Motion to Dismiss. Benny 20

21 is represented by Attorney Daniel J. Berman. Defendants George Bello (“George”) and Bello

22 Hospitality Group (“Bello Hospitality”) are represented by Phillip Torres. Defendants Bello 23 Enterprises and Betlo family Group L.L.C. (“Bello Family LLC”) are represented by Attorney 24 Jeffrey A. Cook. Defendant Josephine Bello-Duenas (“Josephine”) is represented by Attorney 25 Jon A. Visosky. Plaintiffs Canine Bukikosa (“Carline”) and Bella Martinez (“Bella”) are

27 represented by Attorney Carlos L. Taitano. After considering the arguments of the parties, and

2$ Decision and Order CV40$-17, Bukikosa et at. v. Betto et at.

the applicable law, the Court now issues its Decision and Order denying Defendant Benny

2 Bello’s Motion to Dismiss.

BACKGROUND 4 . . On April 26, 2017 Carline and Bella (collectively ‘the Plaintiffs’) filed a Complaint to . ..

5 Compel Distribution of Trust Properties against Benny, Josephine, George, and Does I through 6 V as Defendants. (Complaint, Apr. 26, 2017). Two days later the Plaintiffs filed their Frist

8 Amended Complaint more clearly enumerating the causes of action against the Defendants for

Fraud and Aiding and Abetting Fraud. (First Amended Complaint, Apr. 28, 2017). 10 In March 2018, the Plaintiffs entered into a settlement agreement and release and filed a Ii stipulated judgement in a separate case, Superior Court Case No. CV0937-l6. (Decl. Benny 12

13 Bello at Exhibit A, Apr. 3, 2019); Bttkikosa et at. v. Betto et. at., Superior Court Case No.

14 CV0937-16 (Stip. Judg., Mar. 28, 2019). As part of the terms of that settlement, the parties 15 agreed to release all known and unknown claims against each other, except those already 16 averred or substantially re-pled subsequent to the agreement in the present case. Id. Thereafter, ‘7 the Plaintiffs filed a Motion for Leave to file a Second Amended Complaint. (Mem. P. & A.

19 Mot. Leave to file Second Amended Complaint., Jun. 26, 2018). Defendants Benny and George

20 filed a non-opposition to the Motion for Leave. (Non-opposition to Mot. for Leave, Jul. 26, 21 2018). The Court granted the Plaintiffs motion and the plaintiffs subsequently filed a Second . . . .

22 Amended Complaint. (Minute Entry, Aug. 20, 2018); (Second Amended Complaint, Aug. 21, 23 2018). 24

25 On April 3, 2019 Defendant Benny Bello filed a Motion to Dismiss the Second

26 Amended Complaint (Def. Benny Benavente Bello’s Mot. Dismiss, Apr. 3, 2019) (hereinafter 27 “Mot. Dismiss”). Each of the other Defendants filed a joinder to Benny’s motion. (Josephine’s 28

Page 2 of 13 Decision and Order CV408-17, Bukikosa et al. v. Betlo et al.

Joinder in Benny’s Mot., Apr. 22, 2019); (Bello Enterprises and Bello Family LLC joinder in

2 Benny’s Mot., Apr. 22, 2019); (George and Bello Hospitality’s Joinder in Benny’s Mot., Apr.

3 25, 2019). Plaintiffs filed an opposition to the motion to dismiss to which Benny replied. (Mem.

P & A. in Opposition to Mot. Dismiss, May 1, 2019) (hereinafter “Plaintiffs’ Opposition”); 5 (Def. Benny Bello’s Reply Mem., May 15, 2019). On June 24, 2019 the Court held a hearing 6 on the motion and subsequently took the matter under advisement. (Minute Entry, Jun. 24,

2019).

DISCUSSION 10 A. Count I of the Complaint has been sufficiently pled.

Benny moves for the Court to dismiss Count I of the Second Amended Complaint under

13 Guam Rules of Civil Procedure (“GRCP”) 12(b)(6) and 9(b). Guam law permits a party to

14 move for dismissal for failure to state a claim for which relief can be granted. GRCP 12(b)(6).

In deciding such a motion, a court must “construe the pleading in the light most favorable to the 16 non-moving party, and resolve all doubts in the non-moving party’s favor.” Taitano v. Calvo 17 finance. Corp., 2008 Guam 12 ¶ 9. “Dismissal for failure to state a claim is appropriate only ‘if 18 19 it appears beyond doubt that the [non-moving party] can prove no set of facts in support of his

20 claim which would entitle him to relief.” Id. 21 Generally, fraud claims are subject to heightened pleading standards under GRCP 9(b). 22 See Ukau v. Wang, 2016 Guam 26 ¶ 35. Rule 9(b) provides that “the circumstances constituting 23 fraud or mistake shall be stated with particularity” and that “[m]alice, intent, knowledge, and

25 other conditions of mind of a person may be averred generally.” GRCP(9)(b). However, “Rule

26 9(b) does not require a plaintiff to prove a claim of fraud at the pleading stage.” Ukati, 2016

Guam 26 ¶ 47. Instead, “what is required is that a plaintiff set forth his claim with sufficient

Page 3 of 13 Decision and Order CV408-17. Btikikosa er at. v. Bello et at.

detail to provide notice to defendants as to what particular fraudulent action is being alleged.” 1

2 Id. This is colloquially referred to as the “who, what,where, and how” requirement. Id.

3 However, when the Plaintiff alleges a claim of constructive fraud where the element of

scienter is not implicated, the Plaintiff is not required to meet the heightened standards of Rule 5 9(b) and instead must only meet Guam’s liberal pleading standard under Rule 8(a). See id. fi 6 40-44. Under Rule 8(a) a pleading must state only: 1) a short plain statement of the court’s

8 jurisdiction; 2) a short plain statement showing that the pleader is entitled to relief; and, 3) a

demand for the relief sought. GRCP 8(a). 10 After reviewing the Second Amended Complaint, the Court believes that the Plaintiffs,

although they do not state the statute in their pleading, are sufficiently alleging a claim of 12

13 constructive fraud under 19 GCA § 65207. Under Guam law, a trustee commits a fraud against

14 the beneficiary of a trust when he performs any action adverse to the beneficiary as enumerated

in Sections 65201-65206. 19 GCA § 65201-65207. None of the Sections outlining the actions 16 that constitute fraud on a beneficiary requires that the trustee have the intent to defraud as an 17 element. See 19 GCA § 65201-65206. Instead, it is enough to establish a claim of fraud to

19 demonstrate that the trustee has acted against the beneficiary’s interest regarding the trust,

20 generally to the trustee’s own benefit or by abusing the trustee’s position over the trust. See id. 2! Because scienter is not an element that must be proven to establish a claim under 19 GCA § 22 65207, the Plaintiffs are not required to meet the heightened pleading standard under Rule 9(b) 23 and must only meet the general pleading standard under 8(a). See Ukau, 2016 Guam 26 fi 40- 24

25 44.

26 Turning to the pleading, we find that the Plaintiffs have more than met the standard

under Rule 8(a). The Second Amended Complaint begins with a statement of the court’s

Page 4 of 13 Decision and Order . CV4O$-17, Bttkikosa et at. v. Belto et at.

jurisdiction under 7 GCA § 3105. (Second Amended Complaint at 1). Count I then begins by

2 stating that Jose and Dolores Bello established a trust, the “Bello Family Trust’,” and served as

3 trustee until their deaths. Id. at 3-4. Subsequently, the Bello siblings: Carline, Bella, Benny,

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