In re Estate of Maruyama

Superior Court of Guam·Decided March 30, 2012·No. PR0136-06·Unknown

Opinion

IN THE SUPERIOR COURT 2 OF GUAM

4 In the Matter of the Estate ) Probate Case No. PR0136-06 ) 5 of ) ) Decision and Order 6 MASA TAKA MARUYAMA, ) Re: Motion for Reconsideration 7 ) 8 Deceased. )

9 ----------------------------) 10 INTRODUCTION II

12 This matter came before the Honorable Judge Michael J. Bordallo on November 30, 13 2011. Tricia Torres Cando leta, the prior Administratix of the above-captioned estate was 14 represented by Attorney Wayson W.S. Wong. Tamio S. Clark, Administrator of the above- 15

16 captioned estate, was represented by Attorney Kevin J. Fowler. After considering the matter 17 presented, the court now issues the following decision and order denying Mrs. Candoleta's 18

19 motions for reconsideration.

20 BACKGROUND 21

22 This matter arises out of a petition for letters of administration filed by Tricia Torres

23 Candoleta on November 17, 2006. Shortly thereafter, Mrs. Candoleta was appointed 24 l Administratrix of the above-captioned estate. On April 24, 2009, Seiichiro Maruyama and Mr. 25

26 Clark petitioned the court for removal of Mrs. Candoleta as Administratrix and remedial relief.

27 The court removed Mrs. Condoleta and appointed Mr. Clark as the successor Administrator for 28 the above-captioned estate.

I Mr. Maruyama is the son of the decedent.

Page 10f7 r'R\C'\\; U I 1"J\ \!~L f The court also found that Mrs. Candoleta fraudulently procured a sale of the estate's 2 real property to herself. Additionally, the court found that Mrs. Candoleta embezzled rental 3

4 proceeds belonging to the estate. Therefore, on August 18,2009, the court ordered (1) that the

5 Deed which Mrs. Cando leta obtained from Mr. Maruyama be declared null and void; (2) that 6 the promissory note in the amount of $126,778.45 which Mrs. Candoleta obtained from Mr. 7

8 Maruyama be declared null and void; (3) Mrs. Candoleta shall be liable for double damages

9 pursuant to 15 GCA § 2355 for fraudulently procuring the sale of Unit 101 to herself; and (4) 10 Mrs. Candoleta shall be liable for double damages pursuant to 15 GCA § 2625 for rental 11

12 proceeds she embezzled.

13 On November 5, 2010, the court assessed damages in the amount of $236,000.00 14 against Mrs. Candoleta for fraudulently procuring the sale of Unit 101 to herself. The amount 15

16 was based on the Unit's appraised value of $118,000.00, which was doubled pursuant to 15 17 GCA § 2355. On February 14, 2011, the Clerk of Court issued an abstract of judgment naming 18 Mrs. Candoleta the judgment debtor; the Estate of Masataka Maruyama the judgment creditor; 19

20 and the amount of judgment to be $236,000.00. 21 On February 17, 2011, Mrs. Candoleta filed motions for reconsideration for the above 22

23 mentioned findings and orders. More specifically, Mrs. Candoleta moves the court to (1) set 24 aside any and all findings, determinations and orders as to any fraud andlor embezzlement by 25 Mrs. Candoleta in the court's August 18, 2009 order; (2) set aside the court's November 5, 26

27 2010 order assessing a penalty of $236,000.00 against Mrs. Candoleta; and (3) set aside the 28 abstract of judgment issued by the Clerk of Court on February 14,2011. DISCUSSION 2 The above mentioned findings and orders are interrelated with each other. The August 3

4 18, 2009 decision and order however, lays out the court's initial findings for which the latter 5 two are based on. Thus, the court must first determine whether it can reconsider the August 18, 6 2009 decision and order. 7

8 August 18, 2009 Decision and Order 9

10 The court will consider the motion under the standard for Rule 60(b). Because Mrs.

11 Candoleta argues error, lack of jurisdiction and unjust result, 60(b)(1), (4) and (6) apply to this 12 case. Rule 60(b) provides, 13

14 On motion and upon such terms as are just, the court may relieve a party or the party's legal representative from a final judgment, order, or proceeding for the 15 following reasons: (1) mistake, inadvertence, surprise, or excusable neglect; ... 16 (4) the judgment is void; ... (6) any other reason justifying relief from operation of the judgment. The motion shall be made within a reasonable time, and for 17 reasons (1), (2), (3) not more than one year after the judgment, order, or 18 proceeding was taken. 19

20 Guam R. Civ. P. 60(b).

21 Rule 60(b)(1) grants a court the discretion to relieve a party from any order or 22 proceeding for reason of mistake, inadvertence, surprise, or excusable neglect, provided that the 23

24 party moves for relief within a reasonable time and not more than one year after the order was 25 entered. Brown v. Eastman Kodak Co., 2000 WL 1732522, 2000 Guam 30, ~32, (Guam 26 Terr.)(citing Pioneer Investment Serv., Inc. v. Brunswick Assoc., 507 U.S. 380, 394, 113 S. Ct. 27

28 1489, 1497-98, 123 L.Ed.2d 74 (1993)). Rule 60(b)(4) allows relief from judgments or orders

issued by a court in excess of its jurisdiction, Alaimalo v. US., Criminal No. 96-00039, Civil

No. 99-00106, Civil No. 03-00044, and Civil No. 06-00034, 2006 WL 3313298 (D.Ct.Guam November 14,2006). A judgment is void only if the court that rendered it lacked subject matter 2 jurisdiction, lacked jurisdiction over the parties or if the court acted in a manner inconsistent 3

4 with due process. See Tomlin v. McDaniel, 865 F.2d 209, 210 (9th Cir. 1988).

5 Rule 60(b)(6) may be used to relieve a party from an order for any justifying reason 6 which falls outside the scope of subsections one (1) through five (5), Pineda v. Pineda, 2005 7

8 Guam 10, ~20, and Brown v. Eastman Kodak Co., 2000 Guam 30, ~14. Additionally, motions 9 made under subsections four (4) and six (6) must be made within a reasonable time after the 10 order or judgment. G.R.C.P. Rule 60(b). In this case, Mrs. Candoleta's motion was filed 18 11

12 months after the court's August 18, 2009 decision and order. The court notes that Mrs. 13 Candoleta's previous counsel was suspended from the bar for conduct in 2010 on February 8, 14 2011. Thus, Mrs. Candoleta had to obtain new counsel. Due to those circumstances, the Court 15

16 finds that the motion is therefore timely under Rule 60(b)(4) and (6).2 17 Having concluded that the motion may be properly considered under Rule 60(b)(4) and 18

19 (6), the court must now reach the question of whether the motion should be granted. Mrs. 20 Candoleta requests the court to set aside any and all findings, determinations and orders as to 21 any fraud and/or embezzlement. With regards to 60(b)(4), she argues that a Judge sitting in a 22

23 probate case lacks the subject matter jurisdiction to make any ordinary fraud findings. She also 24 argues that the court erroneously applied 15 GCA § 2355 to its August 18, 2009 decision and 25 order. 3 That section provides, 26

2 The court fmds that 60(b)(l) does not apply because the motion was filed beyond one year.

3 The court notes that this case was initially assigned to another Superior Court Judge. This court was not assigned

this case until August 31, 20 II. A personal representative who fraudulently sells any real property of an estate 2 contrary to or otherwise than under the provisions of this Chapter, is liable for double the value of the real property sold, as liquidated damages, to be recovered 3 in an action by the person having an estate of inheritance therein. 4

5 15 GCA § 2355. 6 The above statute seems to suggest that a separate action by Mr. Maruyama needed to 7

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