FirstBank Puerto Rico v. Thomas Alan Ainger

CourtSuperior Court of The Virgin Islands
DecidedMay 12, 2021
DocketSX-20-RV-04
StatusPublished

This text of FirstBank Puerto Rico v. Thomas Alan Ainger (FirstBank Puerto Rico v. Thomas Alan Ainger) is published on Counsel Stack Legal Research, covering Superior Court of The Virgin Islands primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
FirstBank Puerto Rico v. Thomas Alan Ainger, (visuper 2021).

Opinion

SUPERIOR COURT OF THE VIRGIN ISLANDS DIVISION OF ST. CROIX

FIRSTBANK PUERTO RICO

APPELLANT/DEFENDANT,

Vv.

THOMAS ALAN AINGER,

APPELLEE/PLAINTIFF.

Appearances:

Carol Ann Rich, Esq.

Malerie Winne Diaz, Esq. Dudley Rich LLP

5194 Dronningens Gade, Suite 3 St. Thomas, USVI 00802 Attorneys for Appellant

Lee J. Rohn, Esq.

Rhea Lawrence, Esq. 1108 King Street, Suite 3 Christiansted, St. Croix U.S. Virgin Islands, 00820 Aftorneys for Appellee

Civil No. SX-20-RV-00004 Originating Case No. SX-19-SM-139 CITED AS: 2020 VI SUPER 47P

MEMORANDUM OPINION

WILLOCKS, Presiding Judge

ql THIS MATTER comes before the Appellate Division based on an Appeal as of Right from of the Judgment of the Magistrate Division for Thomas Alan Ainger (hereinafter “Ainger’’)

filed by FirstBank Puerto Rico (hereinafter “FirstBank”) on March 10, 2020. For the reasons

stated herein, the Court will VACATE and REMAND to the Magistrate Division. FIRST BANK PUERTO RICO v. THOMAS AINGER SX-20-R V-C0004

Memorandum Opinion & Order

CITED AS: VI SUPER 47P

Page 2 of 14

I. FACTUAL AND PROCEDURAL BACKGROUND

q2 The Magistrate Division entered judgment on March 5, 2020. On July 14, 2020, the Court ordered that Firstbank’s Motion for a copy of Exhibits to be entered into evidence was granted. On July 23, 2020, the Court denied FirstBank’s Motion to Stay Pending Appeal and denied FirstBank's request for waiver of the appeal bond as moot for failure to show good cause. On August 3, 3030 FirstBank filed their Brief and Appendix to Brief. The Court later granted FirstBank’s Motion to Stay Enforcement of the March 5, 2020 judgment pending appeal and waived the posting of bond on August 11, 2020. The Court granted a Motion for Extension of

Time on September 3, 2020.

q3 On September 3, 2020, the Court ordered that Appellee (hereinafter “Ainger’) file his brief on or before October 30, 2020. Ainger’s brief was filed on November 2, 2020. FirstBank filed their Reply Brief on November 12, 2020. The Court ordered the case caption to be amended on February 16, 2021 to reflect the real parties of interest. Firstbank’s Motion reflected their agreement to change the caption to reflect FirstBank Puerto Rico as the real party of interest

and the Court granted their Motion on February 16, 2020.

q4 The first proceeding was held on January 22, 2020. {APP-000033). Plaintiff, Thomas Ainger (hereinafter “Ainger”) appeared with his wife, Elizabeth Kliesch (“Kliesch”). Kliesch addressed the Court. (APP-000034). Kliesch testified there was an insurance claim relating to

Hurricane Maria that had not been resolved between herself, Ainger, and FirstBank and First FIRST BANK PUERTO RICO y. THOMAS AINGER SX-20-RV-00004

Page 3 of 14

Insurance. (APP-000034). Kliesch testified that FirstBank force placed insurance despite the fact

that there was already insurance on the property.' (APP-000035).

q5 Kliesch further stated that the force placed insurance was for the amount of $5,712.28 but had a.deductible of $5,000. (APP-000036). For FirstBank, Dorothy Bonit (hereinafter “Bonit”) appeared as insurance relationship officer. (AP-000038). Bonit stated that she was only speaking on behalf of the FirstBank Insurance Agency as to what role they play. (APP-000039). The trial

court noted that the Summons said FirstBank Virgin Islands, et al. (APP-000041).

q6 However, Bonit was only speaking for the agency, FirstBank Insurance. The trial court explained that if the company needs to hire a representative to represent them, they should do so and have that person come prepared. (APP-000042). The triat court also stated that if FirstBank needed more time, they should have asked for it. (APP-000043). Therefore, the Court had to

reschedule the matter for a time where the correct representatives were present. (APP-000043).

7 The second hearing was held on February 27, 2020. The Court stated on the record that Kliesch did withdraw as a plaintiff. (APP-000050). Bonit appeared for FirstBank as insurance relationship officer. (APP-000051). Kliesch withdrew as a Plaintiff and the Notice of Withdrawal was served upon FirstBank on February 27, 2020: prior to the start of the proceedings.” The Court made note of this on the record when the Court stated to Plaintiff that Kliesch should be

the first witness called to be permitted to Stay in the Courtroom. (APP-000050).

? Force-placed insurance is insurance on your property placed by your bank/lender.

? See V.I. SM. CL. R. Rule 4 (bY 1}(A). At the outset of proceedings on the return date the court shall address the parties orally, advising them that: (A) Counsel are not permitted in Small Claims Proceedings. Al the first Proceeding on January 22, 2020, Klisech was listed as a Plaintiff in this matter. FIRST BANK PUERTO RICO y. THOMAS AINGER SX-20-RV-00004

Page 4 of 14

48 The Magistrate Division found, upon consideration of the testimony and evidence that was presented, that Plaintiff did have valid property insurance through his condominium association. (See Judgment, APP-0000010). The Court additionally found that Defendant acted in bad faith by failing to provide Defendant with the report of the insurance adjuster who assessed the damages to the property, and by failing to provide Defendant with an accounting of the funds collected by the bank as payment for the force-placed insurance. (See Judgment, APP-

0000010).

q9 Ultimately, the Court found that Defendant’s conduct constituted a deceptive or unfair business practice under the laws of the Virgin Islands, and specifically under 12A V.LC. § 304. (See Judgment, APP-0000010), The Court awarded punitive damages in the amount of

$10,000.00, plus $100.00 in court costs. (See Judgment, APP-0000010 p.2).

{10 The issues before the Court for resolution are as follows: (1) Whether the hearing and Magistrate Order provided substantial justice between the parties in accordance with Virgin Islands Small Claims Rules and comported with due process? (2) Whether the Real Estate Settlement Procedures Act governs force placed insurance for a mortgaged property and whether

it should be waived because it was not raised at the trial level?

Gil (3) Whether the Virgin Islands Consumer Fraud and Deceptive Business Practice Act should have been applied by the Magistrate to these factual circumstances? (4) Whether under the “right result wrong reason” doctrine, the appellate court may affirm the judgment that

FirstBank violated the V.I. Consumer Fraud and Deceptive Business Practice Act? FIRST BANK PUERTO RICO v. THOMAS AINGER SX-20-RV-00004

Memeorandum Opinion & Order

Page 5 of 14

II. DISCUSSION

{!2 | The Superior Court has jurisdiction to review the orders and judgments issued by a Magistrate. 4 V.LC. $125. On review, the Superior Court adheres to the standards of an appellate court. V.I. Super. Ct. R. 322.3(b). Factual determinations are to be reviewed for clear error and legal findings, statements of law, and the application thereof, are to be afforded plenary review, See V.I. Super. Ct. R. 322.3(b) (1-2). On review, the appellate court “must address each of the errors the parties address in their briefs, except any errors that have been waived.” Dennie, V.1. 2017 V.I. LEXIS 71 at 7. An appellate court can either affirm or reverse the magistrate court or temand where appropriate. Williams v. Bellot, Case No, SX-7-RV-001 » 2019 WL 626177 (V.I.

Super. Feb. 11, 2019).

4. Whether the hearing and Magistrate Order provided substantial justice between the

parties in accordance with Virgin Istands Small Claims Rules and comported with due

process?

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Related

Charleswell v. Chase Manhattan Bank, N.A.
308 F. Supp. 2d 545 (Virgin Islands, 2004)
Browne v. Gore
54 V.I. 195 (Superior Court of The Virgin Islands, 2011)
Dennie v. People
66 V.I. 143 (Superior Court of The Virgin Islands, 2017)
Cornelius v. Bank of Nova Scotia
67 V.I. 806 (Supreme Court of The Virgin Islands, 2017)

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