Owner of burned clothing store takes witness stand

Zheng Biao, the owner of BL Clothing Store in Garapan that went up in flames in 2010, took the witness stand yesterday afternoon soon after FirstNet Insurance Co. rested its case.

Biao, a Chinese national, is the lone shareholder of Zhen Rui Brother Corp. that owns the former BL Clothing Store. He testified he was the owner of BL Clothing Store when the fire broke out at the establishment on Oct. 30, 2010.

Biao said he was a small businessman engaged in seafood back in China and first came in 1996 to Saipan where he worked at a garment factory until 2004. In 2004, he began working as manager of BL Clothing Store that was then owned by his uncle.

“In 2007 my uncle gave away his shares [of the corporation] to me,” said Biao through an interpreter.

Biao said he then purchased fire and general liability insurance from fire policy insurer FirstNet.

FirstNet is suing Zhen Rui Brother Corp. for allegedly deliberately setting off the fire so that Biao could claim $404,718.53 in insurance proceeds. Zhen Rui Brother Corp. is countersuing FirstNet for refusing to pay the insurance policy.

Biao agreed with Ramon Quichocho, counsel for Zhen Rui Brother Corp., that he is in court because he is claiming insurance and that FirstNet refuses to pay him.

Biao will continue with his testimony at 8am today, Friday.

Richard W. Pierce, counsel for FirstNet, called yesterday to the stand their other witnesses: Jose P. Tapel of Moylan’s Insurance Underwriters (Int’l) Inc., interpreter Jean Shi, former garment factory employee Matilde C. Igitol, insurance consultant Jacques “Jim” Kirby, and certified public accountant J. Scott Magliari.

Kirby, a veteran insurance adjuster, testified that he did not see any tricky acts or bad faith in the actions of FirstNet Insurance on the insurance claims of Zhen Rui Brother Corp.

Kirby agreed with FirstNet’s decision to hire an arson investigator to look into the fire at BL Clothing. He said the hiring of investigator is necessary considering the big amount of insurance claims involved.

Biao’s son, a former employee of BL Clothing Store, also took the witness stand yesterday, as well as Department of Public Safety arson investigators Nadia Saralu and Dan Suel.

U.S. District Court for the NMI Chief Judge Ramona V. Manglona is presiding over the case.