Waathdad v. Cyfred, Ltd.

Superior Court of Guam·Decided December 23, 2025·No. CV0735-18·Unknown

Opinion

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2 iL..§,Ell3 SUFEEIUR s:0uRT GFEUM

2025 DEC i2u25 DEC23 to: 25 AH 101 23 AH 25 CLERK UF OF COURT COUflT

IN THE SUPERIOR COURT OF GUAM GUAM t~---- By: _ _ Na By=

DAVID WAATHDAD, ET AL., CIVIL CASE NO. no. CV0735-18

Plaintiffs, DECISION DECISION AND AND ORDER ORDER RE SECOND vs. MOTION MOTION FOR FOR RELIEF RELIEF FOR FRAUD UPON UPON THIS THIS COURT COURT OR OR FOR CYFRED, LTD., EQUITABLE EQUITABLE RELIEF Defendant. Defendant.

For the the second second time, time,Plaintiffs Plaintiffs move to setaside the the Judgments Judgments issued in this case on

equitable grounds and andon on account accountof of alleged alleged fraud committed by Defendant Cyfred, Ltd. Ltd. and and its

counsel. counsel. Upon Uponreview reviewofofthis thismotion motionand andthe therecord recordininthis thiscase caseand and related related cases, cases, the Court

finds finds that that Plaintiffs Plaintiffshave havefailed failedtotodemonstrate demonstrateaabasis basistotoset setaside asidethe the Judgments Judgments issued by this

Court and and the Supreme Court of Guam. Supreme Court

I. FACTUAL AND AND PROCEDURAL PROCEDURAL BACKGROUND BACKGROUND

A. Chronology Chronology of of Proceedings

This case concerns concernsthe thenonjudicial nonjudicialforeclosures foreclosuresof of"second "second lots" lots" in the the Gill-Baza

Subdivision. The The Court Courtincorporates incorporates the the "Factual "Factual and and Procedural Background" detailed detailed by the

Guam Supreme SupremeCourt Court in in its its first Hist opinion opinion on on this matter, Waathdad u this matter,Waathdad v. Cy/red, Cyfred, 2021 2021 Guam 2411 Guam24 'l1'l1

4~10. 4-10. In In that that opinion, opinion, the the Guam Guam Supreme Court affirmed Supreme Court affirmed this this Court's ruling ruling granting granting Cyfred Cyfred

summary judgment. Under summary judgment. Under aa Mandate, Mandate, the the matter matter returned to this Court, where the parties

litigated litigated attorney's attorney's fees fees and and a stay. stay. This This Court Court also also declined declined to stay enforcement of the

ORIGINAL CV0735-18 DECISION AND ORDER RE SECOND DECISION SECOND MOTION FOR RELIEF FOR Page Page 2 FRAUD UPON THIS COURT OR FOR EQUITABLE EQUITABLE RELIEF

Judgment. Judgment. Order Den. Appl. Relief Relief(Sep. (Sep. 19, 19, 2023). Plaintiffs Plaintiffsagain againappealed, appealed, and and the the Guam

Supreme Court affirmed Supreme Court affirmed the denial of ofthe the stay. stay. Waathdad Waathdadv.u Cy/red, Cyffed, 2024 Guam 6.

Upon Upon the the issuance of the Guam issuance of Guam Supreme SupremeCourt's Court'ssecond secondMandate Mandateon onAugust August11, ll, 2025,

this Court reviewed reviewed and and denied denied Plaintiffs' Plaintiffs'first firstmotion motiontotoset setaside asidethe theJudgments Judgments based on

alleged fraud upon the Court committed by by Cyfred's 's attorney, Curtis Van Van de dhVeld. Veld. Dec. Dec. & & Order

Den. Pis.' Pls.' First Mot. Relief Relief for Fraud Upon This This Ct. Ct. (Aug. (Aug. 11, 11, 2025). 2025). In this second Motion,

Plaintiffs contend that for good good conscience conscience and and equity, equity, the JudgmentslI should the Judgments should be be set set aside. aside. They

allege allege that at the time Cyfred moved for partial summary judgment judgment (in (in 2019), 2019), Cyfred and its

counsel Mendiola had executed a deed counsel knew that Stephanie Mendiola deedtransferring transfening her interests to to Cyfred Cyfred

but concealed that deed from the Court and from Plaintiffs. That That alleged alleged concealment, they

contend, amounts amounts to to a fraud fraud on the the court court and and warrants warrants vacatur vacate of ofthe the Judgments, reinstatement of Judgments, reinstatement of

the prior prior preliminary preliminary injunction, injunction,and andsetting settingaside aside subsequent subsequent nonjudicial foreclosure foreclosure sales. sales.

B. Determinations Determinations in the related action, Peter v.v. Gill, CV0426-18 action, Peter

Portions of this second motion concern development in a related case, Peter v.u Gill,

CV0426-18. CV0426-l InIn that that case, case, in in March March 2020, 2020, the Court examined examined whether whether Mendiola Mendiola intended intended ro to

interests in lots at the transfer her interests the Subdivision. Subdivision. ItIt found found that in April 2014, Mendiola provided a

signed signed Quitclaim Quitclaim Deed Deed to to Van Van de Veld, Veld, who who was was serving sewing as her attorney at the time. Peter,

CV0426-18 (Dec. & Order re Pis.' Pls.' Renewed Mot. Summ. J. at 2 (Mar. (Mar. 13, 13, 2020)). 2020)). The Court

determined that that Mendiola Mendiola intended intended to transfer title title immediately immediately when when sheprovided she provided the deed to

l1 Plaintiffs Plaintiffs ask ask the the Court Court to set aside this this Court's Court's January January 30, 30, 2020 Judgment and and the the May May 31, 2023 Addendum. Addendum. However, However, there there are are other judgments. The The Guam Guam Supreme Supreme Court issued Judgments Judgments on onDecember December22, 22,2021, 2021,and andononDecember December5,5, 2024--bothaffirming 2024-both affirming this this Court. Court. When using the term term "Judgments," this Court incorporates the Judgments issued by the Guam Supreme "Judgments," this Court incorporates the Judgments issued by the Guam Supreme Court, even though Plaintiffs Plaintiffs do do not notspecifically specificallymention mentionthe theGuam GuamSupreme Supreme Court Court Judgments. Judgments.

ORIGINAL CV0735-18 DECISION DECISION AND ORDER RE SECOND MOTION FOR RELIEF FOR Page 3 Page FRAUD UPON THIS COURT OR FOR FOR EQUITABLE EQUITABLE RELIEF RELIEF

her attorney, even without without giving giving him him instructions instructions or or conditions conditions regarding regarding the transfer of the

deed to Cyfred Cyfred or Plaintiffs. Id. or Plaintiffs. Id. at at 9. 9. "Accordingly, ... ... Mendiola Mendiola has has no no claim claim or or interest interest in any

of of the the 14 14 lots." Id. Id. Then, Then,ininAugust August2021, 2021,the the Court Courtfound foundthat that because Mendiola transferred because Mendiola transferred her

interests, and Cyfred intended to transfer its interest through the Settlement Agreement, Cyfred

has no claim or interest in any of the the fourteen lots. Id. (Dec. fourteen lots. (Dec. & & Order Order re re Mot. Mot. Partial Summ. J.

on Pls.' Ninth Count (Aug. 20, 2021)). Pis.' Ninth

Following Followingaa trial, trial,the the Court Courtissued issued its its Findings Findings of of Fact and Conclusions Conclusions of of Law Law in in

CV0426-18. CV0426-l The The Court Court determined determined that Cyfred Cyfred and Gill did did not not commit commit fraud in in the course course of of

Agreement with the Settlement Agreement with the homeowners homeowners of of the Subdivision, Subdivision, that that there there was no other

contract whereby whereby Cyfred Cyfred or Francis Gill were were bound to assist assist Plaintiffs Plaintiffs with clearing title, and

duty of that the duty of good good faith faith and and fair fair dealing dealing did did not apply. Id. (Finds. not apply. (Finds. Fact Fact & & Concl. Cone!. L. (Aug. 11, 11,

2025)). Plaintiffs Plaintiffsasked askedthe the Court Court to to alter alter or or amend amend its finding; finding, however, however, the Court found that it it

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