Judge orders distribution of $290K Malite funds

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Posted on Apr 09 2008
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Superior Court Associate Judge Kenneth Govendo has ordered a partial distribution of the Angel Malite estate in the amount of $290,000 that is presently held in trust.

In his written order issued Tuesday, Govendo directed the Superior Court’s clerk, the administrative services, and accounting unit to make the partial distribution.

The judge approved the release of funds following the request by the Malite estate’s co-administrators Jimmy Sablan and Esther Sound.

The co-administrators requested for partial distribution of the estate’s funds held in trust by the Superior Court in the amount of $100,000 to each of the four branches of the Malite family—Joaquina Malite, Elias Malite, Jacoba Malite, and Remedio Malite—with offsets for prior advances made.

Govendo said $165,000 should be made payable to the law offices of Stephen J. Nutting to be held in trust of behalf of the heirs of Elias Malite and Jacoba Malite, and the estates of Jesus Sinounou and Gregorio Sablan, pending further court orders in those proceedings and or in the estates of their deceased children.

Jesus Sinounou and Gregorio Sablan are heirs of Jacoba Malite.

The judge said the other $100,000 should be made payable to the law offices of F. Matthew Smith to be held in trust on behalf of the heirs of Joaquina Malite, pending further court orders in the probate of Joaquina’s estate and in the probate of her daughter Marcela.

The remaining $25,000, Govendo said, should be made payable to the Torres Brothers Law Offices to be held in the attorneys’ trust account pending a final decision on the merits of the Juan Somol heirship claim.

Despite the restrictions placed in the distribution to the individual heirs, Govendo said that Nutting may distribute $33,333.34 of the funds to be held in reserve for the estate of Jacoba Malite to Rombert Sinounou, to allow him to use such funds as necessary for his support, care and medical treatment.

The hearing for the partial distribution was held Friday. At the proceeding, co-administrators Jimmy Sablan and Sound, through counsel Nutting, informed the court that Rosa Malite Fejeran, the daughter of Elias Malite, was advanced $35,000 for medical and funeral expenses.

In addition, Innocencia Tudela, the granddaughter of Joaquina Malite, has received distributions that exceed the amount due the other heir to the estate of Joaquina.

The co-administrators also requested that the $100,000 being proposed for the heir claimants of Remedio Malite should be held in trust, contingent upon the outcome of the appeal filed in the CNMI Supreme Court.

Attorney Victorino Torres of the Torres Brothers Law Offices, counsel for the Somol heir claimants, objected to the distribution.

Torres maintained that any distribution would have to be channeled through the estates of Angel Malite’s deceased children, grandchildren and great grandchildren.

Nutting objected to this as being unnecessary since the heirs in those estates have been well established and have already received distributions.

Torres further requested that if a distribution was to be made, that they receive $25,000 as partial distribution.

Nutting objected, citing that a stay was in place, and if it was determined that the Somols were not heirs, the Malite estate would not likely be able to recover the funds.

Govendo, however, found the Somols’ argument persuasive.

In his written order, Govendo expressed concern that given the multiple levels of probate among and between the heirs, seeking individual orders in each probate in order to make distributions to the rightful heirs will be burdensome and costly to the estate.

“The court will, therefore, entertain a motion to consolidate the probates of the estates filed on behalf of all of the deceased heirs of Angel Malite, in order to allow future distributions and proceedings to take place within a single forum and hearing when possible,” he said.

Govendo granted the Somols’ request for a $25,000 distribution. But such distribution, he pointed out, shall remain in trust pending a final decision on the validity of the Somols’ heirship claim.

Last March 25, Govendo threw attorneys Reynaldo O. Yana and Antonio M. Atalig in jail for not complying with his order to return the $1.3 million in attorney’s fees that the two lawyers received in the controversial Malite estate probate.

Govendo ordered Yana and Atalig to report to the Department of Corrections to serve their 30-day sentence for civil contempt.

Govendo said the two lawyers may purge the contempt by posting $1,285,500.

Yana and Atalig served as counsels for then Malite estate administrator Jesus C. Tudela, whom Govendo kicked out due to mismanagement.

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