Vaughn v. Bank of Guam

1 N. Mar. I. 160, 1990 N. Mar. I. LEXIS 9
CourtSupreme Court of The Commonwealth of The Northern Mariana Islands
DecidedJune 6, 1990
DocketAPPEAL NO. 89-004; CIVIL ACTION NO. 87-315
StatusPublished

This text of 1 N. Mar. I. 160 (Vaughn v. Bank of Guam) 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
Vaughn v. Bank of Guam, 1 N. Mar. I. 160, 1990 N. Mar. I. LEXIS 9 (N.M. 1990).

Opinion

DECISION and ORDER

PER CURIAM:

This matter came on for hearing on May 3, 1990. Two motions filed by the appellant were entertained: a motion to dismiss the [162]*162appeal without prejudice or, in the alternative, to hold it in abeyance; and, a motion for review by the full panel of the jurisdictional order issued on September 28, 1989, by a single justice.

PROCEDURAL BACKGROUND

A Commonwealth Trial Court (now the "Superior Court") jury rendered a verdict in favor of Vaughn on June 1, 1988. Thereafter, the Bank of Guam appealed the judgment to the Appellate Division of the District Court for the Northern Mariana Islands (hereafter "Appellate Division"). On April 19, 1989, the Appellate Division issued an opinion affirming the trial court's decision. Vaughn v. Bank of Guam, No. 88-9013 (D.NMI App.Div. April 19, 1989).

On May 15, 1989, the Appellate Division issued its mandate to the Superior Court. Prior to that date, on May 2, 1989, the Supreme Court of the Northern Mariana Islands (hereafter "this Court") was established under the Commonwealth’ Judicial Reorganization Act of 1989, Public Law 6-25.

On May 19, 1989, the Bank of Guam filed separate appeals to this Court and to the United States Court of Appeals for the Ninth Circuit (hereafter "Ninth Circuit"),1

[163]*163Earlier, the parties had requested this Court to determine: (a) whether we had assumed jurisdiction of this appeal as of May 2, 1989, (b) whether the appeal had been properly brought to this Court, and (c) at which point in the appellate process the appeal was transferred to this Court.

On September 28, 1989, a single justice of this Court issued an order, ruling that (a) this Court had jurisdiction as of May 2, 1989, (b) that the appeal was properly brought before it through the filing of the notice of appeal, and (c) that this Court would process the appeal from the point when the Appellate Division was divested of jurisdiction.2

On October 6; 1989, the Bank of Guam filed a motion for review by the full panel of the jurisdictional order issued on September 28, 1989.

On March 8, 1990, the Bank of Guam filed a separate motion to dismiss its appeal without prejudice or, alternatively, to hold the matter in abeyance pending a • final determination by the Ninth Circuit on the jurisdictional issue.3

[164]*164ISSUES

The principal issues raised by the motions are:

1. Whether we assumed jurisdiction over this appeal, which was pending before the Appellate Division on May 2, 1989.

2. Whether we should dismiss this appeal without prejudice or' hold it in abeyance until the Ninth Circuit decides the question as to its own jurisdiction over the appeal.

For the reasons set forth below, we conclude that this Court has jurisdiction over the appeal; that the appeal was properly transferred to us; and that we should neither dismiss the appeal without prejudice nor hold it in abeyance.

DOES THIS COURT HAVE JURISDICTION?

Between the time that the single justice issued his order on September 28, 1989, and the submission of these motions for our consideration, this Court issued a decision as to its jurisdiction in pending appeals in Wabol v. Villacrusis, No. 89-005 (NMI Dec. 11, 1989). In Wabol. we carefully analyzed the judicial power of the Commonwealth under Articles II and IV of the Covenant. We delineated the role of the U.S. Congress under the Covenant (Sections 401 and 402(c)) in establishing a federal district court for the Commonwealth and empowering it to receive appellate jurisdiction from CNMI laws. We also delineated the role of the CNMI under the Covenant (Section 203(d)) in establishing its own trial and appellate courts, and its authority to use the District Court (Section 402(c)) as its own appellate court at any time and [165]*165from time to time. We concluded in Wabol that under the terms of P.L. 6-25, this Court assumed jurisdiction over all appeals pending before the Appellate Division and the Ninth Circuit on May 2, 1989.

The posture of this appeal is significantly different from Wabol. Wabol was appealed to the Ninth Circuit before May 2, 1989, and was pending in that court on the effective date of P.L. 6-25. This appeal was pending in the Appellate Division with no notice of appeal to the Ninth Circuit on May 2, 1989. In Wabol, the effect of P.L. 6-25 was to transfer the appeal from the Ninth Circuit to this Court because the notice of appeal to the Ninth Circuit was filed before May 2, 1989, and no decision had issued. In the appeal at hand, the effect of P.L. 6-25 is to transfer the appeal from the Appellate Division to this Court to hear any motions for reconsideration or to issue the mandate. In other words, this Court cannot sit in review of the Appellate Division's judgment. We can only process the appeal up to and including the issuance of a mandate.

The importance of this distinction is that the Ninth Circuit has ruled that it has appellate jurisdiction in cases appealed from the Appellate Division because 48 U.S.C. § 1694b(c)4 provides that all appeals from -the Appellate Division must be heard by the Ninth [166]*166Circuit. In Wabol. such an appeal had been initiated before the transfer date of May 2, 1989. In this case, there cannot be an appeal from the Appellate Division since no appeal was filed before that date. Thus, we find that, even under the reading of 48 U.S.C. § 1694b(c) by the Ninth Circuit, P.L. 6-25 effectively removed this appeal from the Appellate Division to this Court on May 2, 1989.

We respectfully disagree with the gloss given 48 U.S.C. § 1694b(c) by the Ninth Circuit in Wabol. The primary difference between this Court's opinion and that of the Ninth Circuit is that the Ninth Circuit opinion views 48 U.S.C. § 1694b(c) as an amendment to Section 403(b) of the Covenant. Wabol v. Villacrusis, No. 89-1736, slip op. at 1822 (9th Cir. Feb. 20, 1990). Therefore, since the Covenant requires that all appeals from a federal court be heard by the Ninth Circuit, the CNMI Legislature could not pass a law to divest the Ninth Circuit of its jurisdiction over pending appeals.

However, the Ninth Circuit failed to correctly identify the fundamental source of judicial authority of the Northern Mariana Islands. In Wabol. the Ninth Circuit stated: "The NMI Legislature's authority to establish a local appellate court is governed by Section 402 of the Covenant ...." Id. (Emphasis added.) That statement is fundamentally incorrect. Section 402 of the Covenant5 provides for the trial and appellate jurisdiction [167]*167of the federal district court. It does not provide the authority for the NMI to establish a local appellate court.

The source of judicial authority in the Northern Mariana Islands is found in Section 203(d):

Free access — add to your briefcase to read the full text and ask questions with AI

Related

§ 1649b
48 U.S.C. § 1649b(c)
§ 1694b
48 U.S.C. § 1694b(c)

Cite This Page — Counsel Stack

Bluebook (online)
1 N. Mar. I. 160, 1990 N. Mar. I. LEXIS 9, Counsel Stack Legal Research, https://law.counselstack.com/opinion/vaughn-v-bank-of-guam-nmariana-1990.