David Waathdad v. Cyfred, Ltd.

2024 Guam 6
Supreme Court of Guam·Decided December 5, 2024·No. CVA23-012·Published·Cited by 1 cases

Opinion

IN THE SUPREME COURT OF GUAM

DAVID WAATHDAD; KINASIRO K. ALBERT; RENSPER ALPET;

IASINDA R. ALPET; SINO ANIS; FLORENZO H. ATAN; THANKYOU ERAM; ROSENTA IFRAIM; SMITHER D. EZRA; SILIHNER G. FRED; MARGARET L. FANOWAY; MARTINA FINE JOSEPH, Individually and as the Special Administrator of the Estate of Rainis Rangi, Deceased; PAUL KARGON; MARTINA RUEMAU; DARIA KOSAM; JOHN LIGMAW;

MARIA T. LIGMAW; MARSALA D. MARTIN; SONTAG H. MARTIN; T’NEL MORI; LYNN OTWII aka “LYNN OTIWII”; TAKASHI C. UNTUN;

MARTIN RAYMOND; INOCENTA RAYMOND; ALEX H. RUBEN;

FELISA B. RUBEN; KEROPIM SHAREP; TOMININA TAKEIOSHY;

JENNIFER D. TOPACIO; GERRY L. TOPACIO; DIVINA VAIAU;

STANLEY YANFAG; and ROSEMARY YANFAG, Plaintiffs-Appellants,

v.

CYFRED, LTD.,

Defendant-Appellee.

Supreme Court Case No.: CVA23-012 Superior Court Case No.: CV0735-18

OPINION

Cite as: 2024 Guam 6

Appeal from the Superior Court of Guam Submitted Without Argument Hagåtña, Guam

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Appearing for Plaintiffs-Appellants: Appearing for Defendant-Appellee: Wayson W.S. Wong, Esq. Curtis C. Van de Veld, Esq. Law Offices of Wayson Wong, APC The Vandeveld Law Office P.C. 2550 E. Manoa Rd. Gill & Perez Historic House Honolulu, HI 96822 123 Hernan Cortes Ave.

Hagåtña, GU 96910

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BEFORE: ROBERT J. TORRES, Chief Justice; F. PHILIP CARBULLIDO, Associate Justice; and KATHERINE A. MARAMAN, Associate Justice.

PER CURIAM: [1] Plaintiffs-Appellants, who are homeowners in the Gill-Baza Subdivision (“Homeowners”), appeal the trial court’s denial of their application to stay execution of a judgment against them. The issue on appeal is whether the trial court has the inherent equitable authority to grant a stay like the one requested, even though Rule 62 of the Guam Rules of Civil Procedure (“GRCP”) does not provide for it. We find that although the Superior Court has the inherent equitable authority to grant a stay of execution, it has no authority to do so in cases like this, where the relief requested is based on a pending case with non-mutual parties. We affirm the trial court’s order denying a stay of execution, and we order the Homeowners to pay Defendant-Appellee Cyfred, Ltd.’s reasonable and necessary appellate attorney’s fees, in an amount determined by the Superior Court upon remand, as well as court costs.

I. FACTUAL AND PROCEDURAL BACKGROUND [2] This appeal stems from years of protracted litigation between various homeowners and Cyfred, Ltd. (“Cyfred”) over Cyfred’s failure to install sewer lines on lots sold to the Homeowners in the Gill-Baza Subdivision.1 As part of a settlement agreement reached in prior litigation, the Homeowners each acquired promissory notes from Cyfred for additional lots that required them to pay Cyfred each year. Although the Homeowners initially made annual payments, they eventually decided not to render payment and to instead set off payment with fees they believed they were owed in separate litigation with Cyfred. After failing to receive payment, Cyfred

1 See, e.g., United Pac. Islanders’ Corp. v. Cyfred, Ltd., 2017 Guam 6; Nat’l Union Fire Ins. Co. of Pittsburgh v. Cyfred, Ltd., 2015 Guam 7; Sananap v. Cyfred, Ltd., 2011 Guam 22; Sananap v. Cyfred, Ltd., 2011 Guam 21; Yanfag v. Cyfred, Ltd., 2009 Guam 16; Abalos v. Cyfred, Ltd., 2009 Guam 14; Sananap v. Cyfred, Ltd., 2009 Guam 13; Sananap v. Cyfred, Ltd., 2008 Guam 10; Abalos v. Cyfred, Ltd., 2006 Guam 7.

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completed several non-judicial foreclosures on some of the Homeowners’ properties, as allowed under the settlement agreement. The Homeowners sued Cyfred and requested an injunction to enjoin it from conducting further non-judicial foreclosures. [3] The trial court found for Cyfred and entered judgment, along with attorney’s fees and costs, against the Homeowners. However, the court deferred determining Cyfred’s total attorney’s fees while the Homeowners’ appeal of the judgment was pending. This court later affirmed the judgment and all related orders. Waathdad v. Cyfred, Ltd., 2021 Guam 24 ¶ 42. The trial court then turned to attorney’s fees. Cyfred requested attorney’s fees in the initial case and its related appeals. However, the Homeowners moved to deny Cyfred’s appellate attorney’s fees, arguing that the trial court lacks jurisdiction to award appellate attorney’s fees and that the Supreme Court did not award appellate attorney’s fees. The trial court granted the Homeowners’ motion to deny appellate attorney’s fees. The trial court then reviewed the reasonableness of attorney’s fees and ordered the Homeowners to pay attorney’s fees and costs of $72,282.00 to Cyfred. [4] Shortly after, the Homeowners applied for ex parte relief, requesting a stay of proceedings to enforce the judgment on the attorney’s fees “for one year . . . or until a final judgment has been entered in CV0425-18, whichever is earlier.” Record on Appeal (“RA”), tab 165 (Appl. Ex Parte Relief, June 9, 2023). Superior Court Case No. CV0425-18 is a civil suit filed by Attorney Wayson Wong—counsel for the Homeowners in this case—against Cyfred. Wong v. Cyfred, Ltd., CV0425-18 (V. Compl. (Apr. 30, 2018)). Wong is the sole plaintiff in that case and claims Cyfred owes him payments stemming from certain promissory notes. Id. [5] The trial court denied the Homeowners’ request to stay enforcement, finding that “[n]one of the motions addressed in [GRCP] 62(b) are pending in this case, and, therefore, [GRCP] 62(b) is inapplicable.” RA, tab 174 at 2 (Order Den. Appl. Relief (Stay Enforcement J.), Sept. 19, 2023).

Waathdad v. Cyfred, Ltd., 2024 Guam 6, Opinion Page 5 of 14

The trial court also found that no other provisions allowing the court to grant a stay—62(d), (e), and (h)2—applied in this case because those provisions relate to specific circumstances which did not occur here (pending appeal, the Government of Guam or an agency thereof, or a final judgment under Rule 54(b)). Id. at 3. [6] The Homeowners appealed, seeking review of the trial court’s decision to deny their motion to stay execution of the judgment against them. The Homeowners then filed an emergency motion asking this court to stay execution of the money judgment, which we denied. [7] Next, Cyfred moved this court for the attorney’s fees it incurred defending against the Homeowners’ emergency motion to stay as well as for the attorney’s fees it incurred preparing the motion for attorney’s fees. In this motion, Cyfred states it “intends to seek further Attorney’s fees upon completion of this appeal on the same grounds.” Mot. Reimbursement Att’y’s Fees & Mem. P. & A. at 13 (Jan. 10, 2024). The Homeowners opposed the motion, their primary argument being that it was premature to award attorney’s fees since the appeal was ongoing. Mem. Opp’n Mot. Reimbursement Att’y’s Fees at 1 (Jan. 17, 2024). [8] Following briefing, this court decided to forgo oral argument and took the matter under advisement. We also stayed our decision on attorney’s fees until determination of the matter on the merits. [9] After we took the matter under advisement, the Homeowners filed a Notice of Intervening Facts alleging fraud upon the court because Cyfred concealed its insolvency. Cyfred objected to this notice, stating the “allegations of fraud on the court are meritless.” Appellee’s Obj. Notice Intervening Facts at 3 (June 3, 2024).

2 The trial court’s order refers to this as Rule 60(d), (e), and (h). RA, tab 174 at 3 (Order Den. Appl. Relief (Stay Enforcement J.), Sept. 19, 2023). However, we find this reference to be a typographical error; Rule 60 does not contain a subsection (d), (e), or (h), whereas Rule 62(d), (e), and (h) are provisions related to staying proceedings. Compare Guam R. Civ. P. 60, with Guam R. Civ. P. 62.

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II. JURISDICTION

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