Estate administrator cleared

The Superior Court has cleared Luis Pelisamen, administrator of the Rita Kaipat estate, of allegations that he improperly retained funds belonging to the estate.

Associate Judge Juan T. Lizama determined that there is no evidence that Pelisamen committed such improper action as all the evidence suggests that any money received went directly into the escrow account.

“There is no evidence that Pelisamen received money from the escrow account,” said Lizama in his order following a hearing on the issue of the administrator’s liability for funds that were allegedly acquired from the leasing of portions of a lot that belongs to the Vicenta Kaipat estate.

“As counsel for the objectors may now recognize, the focus of probate litigation should be on settling the estate and preserving family harmony,” the judge pointed out.

Lizama said Peliseman would be compensated for taking the necessary actions to clear the title of the lot, unless the court later finds that the administrator himself is responsible for clouding the title.

An evidentiary hearing was held on the issue of Pelisamen’s liability for funds allegedly acquired from the leasing of portions of Lot 1772.

Maria M. Yaisewil, Julita O.T. Kileleman, Jessica O.T. Roligat, and Victoria T. Moded objected to the distribution of Dolores Pelisamen’s share of the Rita Kaipat estate unless and until Luis Pelisamen accounted for all money received from the lease of the lot. The estate of Jesus Faisao joined in the objection.

Pelisamen and or his mother, Dolores, entered into leases for Lot 1772 consisting of 5,628 square meters. The lessees were Suk Kon Jo for a term of 55 years beginning April 1992 in exchange for $284,724; and Tony Glad and Manu Melwani for a term of 55 years beginning April 1992 in exchange for $703,500.

There are one or more current lessees occupying parts of the subject lot that are not possessed by Pelisamen.

None of the lessees ever developed the property. Currently, none of the parties who entered into leases with Pelisamen are occupying the property.

No one who alleged that Pelisamen had improperly received funds could produce a witness to testify regarding the transfer of funds to the administrator.

Pelisamen testified that some of the money received by his mother Dolores was used to construct a house in Kagman for his aunt, Rosalia K. Olopai.

In the lease to Jo, Pelisamen represented that the lessor was “seized of the real property in fee simple” and warranted that he had “full right to make this lease.”

At the hearing, Pelisamen admitted that his representation of full ownership in the Jo lease may have been a mistake. He testified that, while he is the owner of the buildings on the island, the land belongs to the Kaipat family as a whole.

Jo has not filed a claim against the estate. Pelisamen testified that he hasn’t seen Jo in more than 15 years, and has never received payment from Jo.

The administrator admitted that he may have received checks for the Glad/Melwani lease, but stated that he never possessed the money. He endorsed the checks and negotiated them to an escrow account held by Pacific American Title Insurance & Escrow (CNMI) Inc.

Glad and Melwani have sued the estate. The lawsuit is pending in court.

In his order, Lizama said the fact that Pelisamen leased out family land in his own name does not necessarily detract from his credibility.

“The court recognizes that such a statement may be a product of Carolinian culture, in which any member of a family might refer to herself, individually, as the owner of family property,” Lizama said.

Lizama also recognized that it is a common practice for Carolinians to lease undivided lands in their individual capacities.

“This is the situation in the instant case, where heirs other than Pelisamen have likewise rented out portions of Lot 1772 in their individual capacities,” he said.

The judge said this departure from American common law—which forbids leasing in the absence of consent from all co-tenants—may need to be addressed by the Legislature.

“As long as the present state of murkiness continues, however, lessees of undivided land are entering leases at their own risk,” he pointed out.

Lizama said that at the hearing, counsel dropped the objection to the distribution, and asked the administrator to quiet title to the land so that it can be distributed.

“The court is dismayed with the parties’ focus on dealing out the liquid assets of the estate,” he said.

Vicenta Kaipat was the mother of Rita, Isaac, and Benigno Kaipat. The Rita Kaipat estate was awarded by the defunct Marianas Public Lands Authority $4.7 million in land compensation. The amount, however, was equally split for $1.3 million among the estates of Rita, Isaac, and Benigno Kaipat.