Camacho v. Demapan
CourtSupreme Court of The Commonwealth of The Northern Mariana Islands
Date FiledMarch 16, 2010
DocketCV-06-0013-GA
JudgeCarbullido
StatusPublished
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Full Opinion
IN THE
SUPREME COURT
OF THE
COMMONWEALTH OF THE NORTHERN MARIANA ISLANDS
MARIA DELA CRUZ CAMACHO, ANTONIO CH. CAMACHO,
VICTORIA DELA CRUZ, and EUGENIA DELA CRUZ,
Plantiffs-Appellees,
v.
JOSE S. DEMAPAN,
Defendant-Appellant.
SUPREME COURT NO. CV-06-0013-GA
SUPERIOR COURT NO. 03-0502D
Cite as: 2010 MP 3
Decided March 16, 2010
Robert H. Meyers, Saipan, Northern Mariana Islands, for Plaintiffs-Appellees.
Antonio M. Atalig, Saipan, Northern Mariana Islands, for Defendant-Appellant.
BEFORE: RICHARD H. BENSON, Justice Pro Tem; F. PHILIP CARBULLIDO, Justice Pro Tem;
ROBERT J. TORRES, Justice Pro Tem
CARBULLIDO, J.:
¶1 This is an appeal from an order granting partial summary judgment in a quiet title action
in favor of Maria Dela Cruz Camacho, Antonio Ch. Camacho, Victoria Dela Cruz, and Eugenia
Dela Cruz (collectively “plaintiffs”), and dismissing defendant Jose S. Demapan’s counterclaims.
The trial court found that the plaintiffs were “entitled to be declared owners of the property in
dispute as a matter of law,” but expressly reserved judgment on plaintiffs’ separate claim for
slander of title. See Camacho v. Demapan, Civ. No. 03-0502D (NMI Super. Ct. Jan. 10, 2006)
(Order Granting in Part Plaintiffs’ Motion for Summary Judgment and Granting Plaintiffs’
Motion to Dismiss Defendant’s Counterclaim at 22). The order granting partial summary
judgment is not a final judgment disposing of all the issues in the case and the superior court did
not determine and direct the entry of a final judgment pursuant to Rule 54(b) of the
Commonwealth Rules of Civil Procedure. The orders challenged are also not appealable by
statute and do not fall within any of the common law exceptions to the finality rule. Accordingly,
we find that this Court is without jurisdiction to consider either of the trial court’s rulings and
DISMISS this appeal.
¶2 While we ultimately dismiss this appeal for lack of jurisdiction, we take the opportunity
to make manifest that under the language of Rule 54(b), the previous orders issued in this case –
including the orders complained of in this appeal – are “subject to revision at any time before the
entry of judgment adjudicating all the claims.” NMI R. Civ. P. 54(b). We emphasize this aspect
of Rule 54(b) due to our concern that the record on appeal does not contain any instrument of
conveyance – specifically transferring title to the plaintiffs – to three of the five tracts of land at
dispute in this case, and neither party at oral argument could direct this Court to where in the
record such deeds exist. The absence of such documentation is particularly troubling in a case
where the entire controversy revolves around “better title” and where the lower court has
disposed of the title issue at the summary judgment stage.
I
FACTUAL AND PROCEDURAL BACKGROUND
¶3 For the purpose of this appeal we summarize the pertinent history of this litigation largely
as it is described in the superior court’s order granting partial summary judgment in favor of the
plaintiffs and dismissing defendant’s counterclaims. This Court has not been supplied with a
complete record as required by Rule 10(a) of the Commonwealth Rules of Appellate Procedure.1
1
At the time this appeal was taken Rule 10(a) of the Commonwealth Rules of Appellate Procedure
governed the composition of the record on appeal. Rule 10(a) provides:
Where the trial court’s findings of fact are not supported by the available record, we point out the
discrepancies below.
¶4 This case originated as a dispute between the descendants of Ana Deleon Guerrero
Demapan (“Ana”) over title to five parcels of land located in Saipan on Capital Hill. Ana, now
deceased, originally owned all the property at issue in this case. The five parcels at issue include:
Lot EA 835 (containing approximately 19,040 square meters);
Lot 313 (containing approximately 6,503 square meters);
Lot 312-RW (containing approximately 551 square meters);
Lot 312-R1 (containing approximately 8,965 square meters); and
Lot 312-1 (containing approximately 3,885 square meters).
Ana had three children: Eugenia Dela Cruz (“Eugenia”), Asuncion Demapan (“Asuncion”), and
Gregorio Demapan (“Gregorio”). The present dispute arises from land transactions that took
place between Ana, her children, and her children’s family prior to and after Ana’s death.2
¶5 The first transaction occurred approximately ten years before Ana died. In 1959, Ana
sold Lot EA 835 to her son-in-law Cristin Dela Cruz (“Cristin”) – Eugenia’s husband – for three
hundred dollars.3 At Ana’s direction, Cristin paid the purchase price directly to Ana’s son
Gregorio. Shortly after payment was made, on July 24, 1959, Ana executed a deed conveying
Lot EA 835 to Cristin – endorsing the deed with her thumb print – in front of the clerk of court
The original papers and exhibits filed in the Superior Court, the
transcript of proceedings, if any, and a certified copy of the docket
entries prepared by the clerk of the Superior Court shall constitute the
available record on appeal in all cases.
(emphasis added).
Rule 11 of the Rules of Appellate Procedure places the duty on the appellant to supply the record
on appeal. NMI R. App. P. 11. In this case, the plaintiffs’ amended complaint appears in the record, which
refers to certain exhibits, but the exhibits (as originally numbered by the plaintiffs) do not accompany the
complaint as it appears in the record. Furthermore, it is impossible for this Court to tell whether copies of
the exhibits originally filed – which may have been reintroduced and relabeled in subsequent proceedings –
exist elsewhere in the record.
On January 13, 2010, the Northern Mariana Islands Supreme Court Rules replaced the
Commonwealth Rules of Appellate Procedure. Rule 10 of the current Supreme Court Rules governs the
record on appeal and contains the same substantive requirements as Rule 10(a) of the former Rules of
Appellate Procedure.
2
While we do not attribute any legal significance to the following fact other than providing context
to a somewhat complicated factual background, it is undisputed that Ana’s daughter Asuncion took the vow
of poverty as a nun in the early 1950s and has provided a declaration in this case stating that she cannot
own land in her own name pursuant to the tenets of her religion.
3
In 1975, Cristin sold a portion of Lot EA 835 (1,570 of the original 19,040 square meters) to
Manuel Sablan. Sablan is not affiliated with this case.
and one other witness. A copy of the deed conveying Lot EA 835 from Ana to Cristin appears in
the record on appeal. Appellant’s Excerpt of Record (“ER”) at 54.
¶6 Ana died intestate on July 9, 1969, leaving her three children as heirs. At the time of
Ana’s death, Cristin held fee simple title to Lot EA 835 and Ana’s children (Eugenia, Gregorio,
and Asuncion) inherited equal undivided one-third interests in their mother’s estate under the law
of the Trust Territory.4 Nothing in the record reflects that either Eugenia or Cristin held outright
title to Lot 313 or any of the 312 parcels prior to September 1983. Yet, between Ana’s death in
1969 and 1983 – when Gregorio and Asuncion allegedly conveyed their interests in Lots 312 and
313 to Eugenia – multiple conveyances took place that purportedly transferred fee simple title
from Cristin to third parties to land that, at the time, Gregorio and Asuncion retained an equal and
undivided one-third interest. The relevant conveyances are outlined below.
¶7 On August 14, 1973, Cristin sold Lot 312-1 (containing approximately 1,396 square
meters) to Francisco Cabrera for $1,500. ER at 61. The deed recites that Cristin “does hereby
covenant that said land is his separate property and does fully warrant the title to said land will
defend the same against the lawful claims of all persons whomsoever.” Id.
¶8 On February 11, 1974, Cristin conveyed Lot 312-2 (containing approximately 838 square
meters) through a deed of gift to his daughter, Victoria Dela Cruz. The deed memorializing this
conveyance appears in the record on appeal, ER at 72, and the deed represents that, at the time,
Cristin was the “sole and legal owner” of Lot 312-2. Id.
¶9 On April 5, 1974, Cristin sold Lot 312-3 (containing approximately 1,301 square meters)
to Rosalia Palting for $7,000. ER at 55. The deed represents that, at the time, Cristin was the
“sole and legal owner” of Lot 312-3. Id.
¶ 10 In its order granting partial summary judgment, the superior court found that on April 18,
1983, Eugenia and Cristin also conveyed Lot 312-2 (containing approximately 838 square
meters) through a deed of gift to their other daughter Maria Camacho, who is a named plaintiff in
this action. This Court could not locate the deed memorializing this conveyance in the record on
appeal. The record does indicate, however, that on April 18, 1983, Cristin and Eugenia conveyed
part of Lot 313 (as opposed to Lot 312-2) to their daughter Maria and her husband Antonio
Camacho.5
4
Intestate succession in the Commonwealth is currently governed by 8 CMC §§ 2901-2927.
However, under 8 CMC § 2102 “[t]he property of persons who die before February 15, 1984, shall pass
according to title 13 of the Trust Territory Code and other applicable law.” Since Ana died before 1984 the
distribution of her property is governed by the Trust Territory Code.
5
The record contains a commitment for title insurance entered into between Maria and Antonio
Camacho with First American Title & Escrow Corporation on March 16, 1990. ER at 46. Paragraph 3 of
¶ 11 On June 22, 1983, Eugenia and Cristin consolidated Lot EA 835 and Lot 313, creating
Lot 313 New. Nothing in the record indicates that Eugenia and Cristin held outright title to the
original Lot 313 at the time this consolidation was made.6
¶ 12 Three months later, on September 19, 1983, Cristin and Eugenia executed a quitclaim
deed, conveying Lot 313-New 2, part of Lot 313 (containing approximately 929 square meters),
and an easement over Lot 313-RW, to Gregorio Demapan.7 The deed memorializing this
conveyance appears in the record on appeal. ER at 161. The same deed conveying Lot 313-New
2 to Gregorio also states that the deed is executed “for and in consideration of the conveyance to
Grantor, Eugenia D. Dela Cruz, by the Grantee [Gregorio Demapan] to that certain tract or parcel
of real property situated in I Denni, Saipan, Mariana Islands, known as Lots 312-R/W, 312-R1
and 312-1, . . . containing an area of [approximately] 13,401 square meters.” ER at 161. The
deed, executed by Cristin and Eugenia, does not contain the signature of Gregorio and it is
the commitment states: “FEE SIMPLE interest in the land described in this Commitment is owned at the
Commitment Date, by Maria Margarita Dela Cruz Camacho and Antonio Ch Camacho.” ER at 49.
Paragraph 4 of the commitment provides:
4. The land referred to in this Commitment is described as follows:
LOT 313 New-313, (Part of original Lot 313, TD 9), containing an area
of 929 square meters, more or less, as more particularly described on
Drawing/Cadastral Plat No. 2096/83, the original of which was
recorded 23 JUN 83 as Document No. 17541 at Land Registry, Saipan.
Deed of Gift between Cristin Sablan Dela Cruz and Eugenia Demapan
Dela Cruz, GRANTORS, and Maria Margarita Dela Cruz Camacho and
Antonio Ch Camacho, GRANTEE, for the metes and bounds
description for the property described within. Executed 18 APR 83 and
recorded 26 OCT 83 as Document No. 83-117 at Commonwealth
Recorders, Saipan.
We make no representation as to whether this commitment, standing alone, is sufficient to establish better
title in Maria and Antonio Camacho as a matter of law for the purposes of summary judgment in the
present quiet title action.
6
In its order granting partial summary judgment, the superior court states that “On June 16, 1983,
Gregorio and Asuncion quitclaimed their interest [sic] Lot 313, containing 6502 acres, which they
acknowledged as their share of their mother’s inheritance, to Eugenia.” Camacho v. Demapan, Civ. No. 03-
0502D (NMI Super. Ct. Jan. 10, 2006) (Order Granting in Part Plaintiffs’ Motion for Summary Judgment
and Granting Plaintiffs’ Motion to Dismiss Defendant’s Counterclaim at 3).
The above statement is not supported by the record. The referenced conveyance took place in
November 1983, as outlined in the main text, not June, and the conveyance was for approximately 6,502
square meters – not acres.
7
In the order granting partial summary judgment, the superior court states that this conveyance took
place on September 9, 1983. This is a typographical error.
unclear when – if at all – Gregorio filed the deed with the recorder’s office.8 The record on
appeal does not contain a deed – if one exists – executed by Gregorio transferring his one-third
interest in Lots 312-RW, 312-R1, and 312-1 to Eugenia or her husband Cristin.
¶ 13 On November 4, 1983, Gregorio and Asuncion quitclaimed their interests in original Lot
313, containing 6,502 square meters, to their sister Eugenia.9 The quitclaim deed recites that Lot
313 is part of Ana Deleon Guerrero’s estate, that Eugenia, Asuncion, and Gregorio are the only
heirs to that estate, and that through the deed, Gregorio and Asuncion intend to convey their
interests in Lot 313 to Eugenia. A copy of the deed conveying Asuncion’s and Gregorio’s
interests in Lot 313 to their sister Eugenia appears in the record on appeal. ER at 90-93.
¶ 14 Five years later, on October 20, 1988, Eugenia and Cristin executed a quitclaim deed
conveying Lot 313-New 11, part of Lot 313 New, and an easement over Lot 313-RW to their
niece Ana S. Demapan. ER at 163. Like the September 19, 1983 deed, in which Cristin and
Eugenia quitclaimed Lot 313-New 2 to Gregorio in consideration of Gregorio’s conveyance of
his interest in portions of Lot 312, the October 1988 deed was made in consideration of Ana S.
Demapan quitclaiming her interest in Lots 312-RW, 312-R1, and 312-1 (containing
approximately 13,401 square meters) to Cristin and Eugenia. Id.10
¶ 15 On November 14, 1991, the probate court issued its decree of final distribution of Ana’s
estate. The decree lists Lots 312-RW (551 square meters), 312-R1 (8,965 square meters), 312-1
(3,885 square meters), and 313 (6,502 square meters) as the only assets of the estate. Throughout
the proceedings, the decedent was referred to as Ana Deleon Guerrero rather than Ana Deleon
Guerrero Demapan. The probate court found that Eugenia, Asuncion, and Gregorio were their
mother’s only heirs. The probate court distributed the properties “in equal undivided shares to the
heirs of the decedent . . . subject to any and all prior conveyances by the heirs.” ER at 153-54.
Gregorio and Asuncion objected to this distribution. They claimed that the conveyance of their
interest in Lot 313 to their sister Eugenia on November 4, 1983 was made in response to
8
The superior court treats the September 19 deed – conveying Lot 313-New 2 from Eugenia and
Cristin to Gregorio – as evidence of a valid conveyance of Gregorio’s interest in Lots 312-RW, 312-R1,
and 312-1 to Eugenia and Cristin. Since we lack jurisdiction over this appeal, we do not decide whether the
superior court’s conclusion is correct.
9
In the order granting partial summary judgment, the superior court states that this conveyance took
place on June 16, 1983. This statement is inaccurate; the quitclaim deed conveying Gregorio’s and
Asuncion’s interests in Lot 313 to Eugenia is dated “November 4, 1983.” ER at 91.
10
Ana S. Demapan is Gregorio’s daughter and the defendant’s sister. No deed exists in the record
reflecting that Ana S. ever received any interest in the 312 parcels from her father (Gregorio) or her aunt
(Asuncion). In other words, there is nothing in the record suggesting that Ana S. Demapan had any interest
in the 312 parcels to convey to Eugenia at the time the October 1988 deed was executed, in which Eugenia
quitclaimed part of Lot 313 in consideration of Ana’s relinquishment of her interest in the 312 parcels.
Eugenia’s representation that she needed the property as collateral for a loan and that the property
would be transferred back to them at a later date. Gregorio and Asuncion also claimed that the
sale of Lot EA 835 from Ana to Cristin in 1959 was invalid. The probate court declined to
adjudicate Gregorio’s and Asuncion’s claims, noting that it was not the proper forum to raise
claims of fraud and misrepresentation. Gregorio and Asuncion did not appeal the probate court’s
decision, and neither filed actions to quiet title in the disputed properties. After the time to appeal
the probate order expired, Gregorio and Asuncion executed and delivered two quitclaim deeds to
Gregorio’s son – the defendant in this case – Jose S. Demapan. ER at 28-31. The deeds purported
to convey all of Gregorio’s and Asuncion’s interests in Lots 312-RW, 312-R1, 312-1, 313, and
EA 835. Id.
¶ 16 In October 2003, Eugenia and her two daughters Maria and Victoria – along with Maria’s
husband Antonio Camacho – filed a complaint against Jose to quiet title in all five lots that were
part of Ana’s estate. The complaint also alleged slander of title.11 In response to the suit Jose
raised various affirmative defenses, including failure to state a claim, fraud, and contract validity
issues (i.e., lack of consideration and reliance on the parol evidence rule) presumably related to
the alleged conveyance from Gregorio and Asuncion of their interests in Lots 312 and 313 to
Eugenia in 1983. He also counterclaimed. Jose’s first counterclaim, entitled “Misrepresentation
in the Execution of Quitclaim Deeds of 1983,” alleged that Eugenia had perpetrated fraud against
Gregorio and Asuncion in 1983 by convincing them that their conveyance of Lot 313 would be
used as collateral for a loan and that their interests in the property would be re-conveyed at a later
date. The second counterclaim alleged that the 1959 sale of Lot EA 835 from Ana to Cristin was
contrary to Chamorro custom and that the thumbprint appearing on the 1959 deed did not belong
to Ana (i.e., that the deed was fraudulent). Finally, the third counterclaim, entitled “Sale, Buy or
Lease of Properties without Other Heirs Consent,” alleged that the transactions involving Lots
312-RW, 312-R1, and 312-1 were void because they were not performed with the consent of all
heirs. As such, the defendant asked that the trial court declare that all prior conveyances be set
aside and that all assets be distributed equally.
11
Slander of title is a common law intentional tort. The Restatement (Second) of Torts § 624
defines slander of title as “the publication of a false statement disparaging another’s property rights in land,
chattels or intangible things, that the publisher should recognize as likely to result in pecuniary harm to the
other through the conduct of their persons in respect to the other’s interests in the property.” The
Restatement also makes clear that slander of title is distinct from personal defamation (i.e., libel or slander),
and should be treated differently. See Restatement (Second) of Torts § 624 cmt. a (1977).
We assume without deciding that since slander of title alleges injury to a property interest, the
statute of limitations provision contained in 7 CMC § 2502 applies to such actions.
¶ 17 The parties thereafter engaged in a procedural battle that included amendments to
complaints, amendments to counterclaims, late filings, entries of default, multiple motions to
dismiss, motions for sanctions, and a motion by the plaintiffs for summary judgment.
¶ 18 The trial court issued its order dismissing defendant’s counterclaim and granting in part
plaintiffs’ motion for summary judgment on January 10, 2006. The trial court dismissed the
defendant’s counterclaims on multiple grounds. It found that Jose did not have standing to assert
that Eugenia defrauded Gregorio and Asuncion regarding the 1983 quitclaim deeds, holding that a
claim for fraud is personal to the alleged defrauded parties. For the same reason, the court held
that Jose did not have standing to assert a claim of fraud for the 1959 sale of Lot EA 835 to
Cristin. The court held that even if Jose did have standing to litigate his counterclaims for fraud,
the counterclaims would be barred by the two-year statute of limitations for torts. With respect to
the defendant’s argument that the conveyances of Lots 312-RW, 312-R1, and 312-1 were void
because they were not conveyed with the consent of all heirs, the trial court held that Jose had not
stated a claim on upon which relief could be granted.
¶ 19 In ruling on the plaintiffs’ motion for summary judgment, the trial court held that the
plaintiffs had presented sufficient evidence to be declared owners of the property at issue as a
matter of law and further found that the defendant had not sufficiently pled fraud or
misrepresentation warranting a trial. The trial court implicitly held that no genuine issue of
material fact existed concerning whether Gregorio and Asuncion had transferred their interests in
their mother’s estate to Eugenia. In reaching this conclusion the court characterized the
September 19, 1983 deed (conveying Lot 313-New 2 from Eugenia and Cristin to Gregorio) as a
valid conveyance of Gregorio’s interest in Lots 312-RW, 312-R1, and 312-1 to Eugenia and
Cristin. This conclusion was made notwithstanding the following facts: (a) the deed was
executed by Eugenia and Cristin; (b) Gregorio’s signature does not appear on the deed; and (c) no
separate deed exists conveying Gregorio’s interest in the 312 lots to Eugenia or her husband.12
12
Although we do not reach the merits of this case, this Court is deeply concerned with an order that
purports to adjudicate ownership of property in a case where deeds to three of the five parcels of land in
dispute do not appear in the record. Put a slightly different way, we express concern for any order that
finds as a matter of law that no genuine issues of material fact exist in cases where certain material facts
cannot be found in the record. We further note that in the federal courts “a [trial court] judge always has
[the] power to modify or to overturn an interlocutory order or decision while it remains interlocutory.”
Credit Suisse First Boston Corp. v. Grunwald, 400 F.3d 1119, 1124 (9th Cir. 2005) (quoting Tanner Motor
Livery, Ltd. v. Avis, Inc., 316 F.2d 804, 809 (9th Cir. 1963)); Fayetteville Investors v. Commercial Builders,
Inc., 936 F.2d 1462, 1473 (“Interlocutory orders and judgments are not within the provisions of 60(b), but
are left within the plenary power of the Court that rendered them to afford such relief from them as justice
requires.”) (quoting 7 Moore’s Federal Practice, para. 60.20, p. 60-170). Under Rule 54(b), interlocutory
orders may be reviewed by the trial court, on motion or sua sponte, independent of the standards governing
Rules 59(e) and 60(b), at any time prior to the entry of a final judgment.
The court also found the November 4, 1983 quitclaim deed conveying Gregorio’s and Asuncion’s
interests in Lot 313 to Eugenia clear on its face, and that the deed did not exhibit any intent of the
grantors to withhold a future interest in the property. In its order the superior court expressly
reserved judgment on the plaintiffs’ slander of title claim. The court did not certify the order as
final and appealable under Northern Mariana Island Rule of Civil Procedure 54(b).
¶ 20 After the dismissal of his counterclaims and the superior court’s grant of partial summary
judgment on the issue of better title in favor of the plaintiffs, Jose filed the present appeal.
Although the plaintiffs-appellees did not challenge our jurisdiction in their briefing, during oral
argument both parties conceded that we lack jurisdiction to entertain the present appeal under this
Court’s holdings in Bank of Guam v. Mendiola, 2007 MP 1 (addressing whether Rule 54(b)
certification may be implied from the actions and language of the trial court, and holding that in
the absence of an express invocation of Rule 54(b), a lower court’s order which does not dispose
of all the claims at issue in a case is not appealable under the rule), and Commonwealth v.
Kumagai, 2006 MP 20 ¶ 1 (reaffirming the rule that an order which adjudicates fewer than all the
claims at issue in the case cannot be immediately appealed in the absence of the superior court’s
issuance of Rule 54(b) certification, and further holding that appeals may only be taken from a
judgment set forth on a separate document issued from the superior court).
II
JURISDICTION
¶ 21 Whether this Court has jurisdiction to entertain an appeal is a threshold issue that “must
always be resolved before the merits of an appeal are examined or addressed.” Pac. Amusement,
Inc. v. Villanueva, 2005 MP 11 ¶ 7 (quoting Williamson v. UNUM Life Ins. Co. of Am., 160 F.3d
1247, 1250 (9th Cir. 1998)). Even where neither party has called our jurisdiction into question,
this Court has the authority and the obligation to review the justiciability of an appeal sua sponte.
Mafnas v. Super. Ct., 1 NMI 277, 282 (1990) (“this Court has the authority and the obligation to
determine its appellate jurisdiction.”); Mariana Pub. Land Corp. v. Guerrero, 2 NMI 301, 306
(1991) (“We review initially the appealability of an order granting partial summary judgment sua
sponte, since the case below has not been entirely disposed of.”).
¶ 22 Although we recently held that Article IV, section 3 of the Commonwealth Constitution
endows this Court with broad jurisdictional powers,13 the CNMI Supreme Court is nonetheless a
court of limited jurisdiction. Indeed, “[w]e have repeatedly stated that we have jurisdiction to
13
See Kabir v. Barcinas, 2009 MP 19 ¶ 23 (Slip Opinion, Dec. 31, 2009) (holding that the CNMI
Supreme Court possesses jurisdiction to accept and answer certified questions from the Ninth Circuit).
review lower court orders only if we are specifically provided authority to do so.” Bank of Guam
v. Mendiola, 2007 MP 1 ¶ 4 (citing Commonwealth v. Kumagai, 2006 MP 20 ¶ 9). Article IV,
section 3 of the Commonwealth Constitution provides that “[t]he Commonwealth supreme court
shall hear appeals from final judgments and orders of the Commonwealth superior court.” NMI
Const. art. IV, § 3 (emphasis added). Given the jurisdictional limitation contained in Article IV,
section 3, we have interpreted 1 CMC § 3102 – which statutorily vests the CNMI Supreme Court
with “appellate jurisdiction over judgments and orders of the Superior Court” – as granting this
Court with jurisdiction only “over Superior Court judgments and orders which are final.”
Kumagai, 2006 MP 20 ¶ 9 (emphasis added) (quoting Commonwealth v. Hasinto, 1 NMI 377,
381-85 (1990)).
¶ 23 A judgment or order is not final unless it “ends the litigation on the merits and leaves
nothing for the [trial] court to do but execute the judgment.” Chan v. Chan, 2003 MP 5 ¶ 13
(quoting Tanki v. S.N.E. Saipan Co., 4 NMI 69, 70 (1993)). In Kumagai, we held that in cases
involving multiple parties or when there are multiple claims for relief, a decision which
adjudicates fewer than all the claims at issue in the case or which fails to determine the rights and
liabilities of fewer than all the parties is not a final judgment within the meaning of Article IV,
section 3 of the Commonwealth Constitution or 1 CMC § 3102. Kumagai, 2006 MP 20 ¶ 10. Put
another way, under Commonwealth law, in the absence of an applicable statutory or common law
exception, an appeal must generally await the entry of a final judgment (i.e., a judgment that
fully disposes of all claims asserted in an action.) Id. at ¶ 8; see also, Quinn v. City of Boston, 325
F.3d 18, 26 (1st Cir. 2003) (discussing the finality requirement in the federal context).
A. Rule 54(b)
¶ 24 In actions involving multiple claims or multiple parties, Commonwealth Rule of Civil
Procedure 54(b) allows the Commonwealth Superior Court to direct the entry of final judgment as
to fewer than all of the claims or parties;14 but to do so, the court must make an express
determination that there is no just reason for delay upon an express determination for the entry of
judgment. Kumagai, 2006 MP 20 ¶ 10; see also, Curtiss-Wright Corp. v. Gen. Elec. Co., 446 U.S.
1, 8 (1980) (interpreting Fed. R. Civ. P. 54(b)). Rule 54(b) provides:
JUDGMENT UPON MULTIPLE CLAIMS OR INVOLVING
MULTIPLE PARTIES.
14
While Rule 54(b) of the Commonwealth Rules of Civil Procedure has been characterized as an
exception to the final judgment rule, this Court has made clear, and takes the time to do so again here, that
“Rule 54(b) does not relax the finality required for a decision to be appealed . . . . It simply allows an
individual claim that has been finally decided, to move forward to appeal without waiting for a final
decision to be rendered on all the claims in a case.” Chan, 2003 MP 5 ¶ 12.
When more than one claim for relief is presented in an action, whether as
a claim, counterclaim, cross-claim, or third-party claim, or when multiple parties
are involved, the court may direct the entry of a final judgment as to one or more
but fewer than all of the claims or parties only upon an express determination
that there is no just reason for delay and upon an express direction for the entry
of judgment. In the absence of such determination and direction, any order or
other form of decision, however designated, which adjudicates fewer than all the
claims or the rights and liabilities of fewer than all the parties shall not terminate
the action as to any of the claims or parties, and the order or other form of
decision is subject to revision at any time before the entry of judgment
adjudicating all the claims and the rights and liabilities of all the parties.
NMI R. Civ. P. 54(b) (emphasis added).
¶ 25 By its own language, Rule 54(b) mandates strict adherence; that is, if the superior court
deems it appropriate to issue a final appealable order on an issue that adjudicates less than all the
claims in a multi-claim case, the court must make an “express determination that there is no just
reason for delay” and expressly direct the entry of final judgment. See Kumagai, 2006 MP 20 ¶
12 (setting forth the two-part test the trial court must apply in determining whether certification is
proper under Rule 54(b)). In Kumagai, 2006 MP 20 ¶ 1, we held that Rule 54(b) certifications –
like all final judgments – must be set forth on a separate document issued from the superior court
as a prerequisite to appeal, and in Bank of Guam, 2007 MP 1 ¶ 6, we held that Rule 54(b)
certification may not be implied from the actions and language of the trial court; the court must
specifically invoke Rule 54(b) and must make an express determination that there is no just
reason for delay and an express direction for the entry of judgment. Given our strict
interpretation of the rule, in Bank of Guam we held that before this Court may exercise appellate
jurisdiction over a Rule 54(b) partial final judgment, “the separate entry of judgment must
expressly state that the trial court has considered Rule 54(b) and it finds that: 1) the judgment is
final as to the parties and/or the issue(s) involved; and 2) the judgment is one that warrants
immediate appealability.” 2007 MP 1 ¶ 13.
¶ 26 In this case, the superior court granted a motion for partial summary judgment in favor of
the plaintiffs on the issue of title and dismissed the defendant’s counterclaims. The order also
reserved ruling on the plaintiffs’ slander of title claim. Since partial summary judgments are by
definition interlocutory in that they fail to adjudicate all the claims involved in a case, in the
absence of Rule 54(b) certification this Court will generally lack jurisdiction to review such
orders on the merits. Mariana Pub. Land Corp. v. Guerrero, 2 NMI 301, 306 (1991) (“Generally,
the granting of a partial summary judgment is interlocutory in nature and is not appealable.”); see
also, Liberty Mutual Ins. Co. v. Wetzel, 424 U.S. 737, 744 (1976) (stating that partial summary
judgments “are by their terms interlocutory . . . and[,] where assessment of damages or awarding
of other relief remains to be resolved[,] have never been considered to be ‘final’ [for the purposes
of federal appellate review]”). It is undisputed that the superior court did not “direct the entry of
a final judgment as to one or more but fewer than all of the claims . . . upon an express
determination that there is no just reason for delay and upon an express direction for the entry of
judgment” under Rule 54(b). Indeed, it does not appear that either party requested that the trial
court do so, and this Court has refused to treat the entry of partial summary judgment as the
equivalent to a Rule 54(b) certification in the past. Bank of Guam, 2007 MP 1 ¶10 (“[i]nterpreting
a judgment as a Rule 54(b) determination without the required findings [i.e., an express entry of a
partial final judgment and an express finding that there is no just reason for delay] would
effectively read out those requirements”) (quoting Am. States Ins. Co. v. Dastar Corp., 318 F.3d
881, 889 (9th Cir. 2003)) (internal quotations omitted and brackets in original). Since the partial
summary judgment presently before the Court was not certified pursuant to the procedures set
forth in Rule 54(b) the remaining question is whether the trial court’s order falls within one of the
common law exceptions to the finality rule.
B. Common Law Exceptions to the Finality Rule
¶ 27 Even in the absence of Rule 54(b) certification, an interlocutory order may be appealable
if: (a) the appealability of the order is not dependent on finality because it is made appealable by
statute,15 or (b) it falls within one of the common law exceptions to the finality rule. Cf. Huckeby
v. Frozen Food Express, 555 F.2d 542, 546-49 (5th Cir. 1977) (providing a comprehensive
discussion of the exceptions to the final judgment rule in the federal context). This Court has
expressly adopted two common law exceptions to the final judgment rule – both of which derive
from federal jurisprudence – and has left open the possibility that other federal exceptions may be
adopted in the future. See, e.g., Commonwealth v. Hasinto, 1 NMI 377, 385 n.6 (1990) (adopting
the “collateral order” exception to the final judgment rule as set forth by the U.S. Supreme Court
in Cohen v. Beneficial Indus. Loan Corp., 337 U.S. 541 (1949)); Pac. Amusement, Inc. v.
Villanueva, 2005 MP 11 ¶ 14 (adopting the “practical finality” exception to the final judgment
rule as set forth by the U.S. Supreme Court in Gillespie v. U.S. Steel Corp., 379 U.S. 148 (1964));
Kumagai, 2006 MP 20 ¶ 16 n.5 (acknowledging, but not specifically adopting, what has become
known as the “Jetco” exception to the final judgment rule – based on the Fifth Circuit’s holding
in Jetco Elec. Indus., Inc. v. Gardiner, 473 F.2d 1228 (5th Cir. 1973), which stands for the
proposition that in the absence of Rule 54(b) certification appellate jurisdiction may nonetheless
15
See In re Estate of Pilar De Castro, 2009 MP 3 (finding jurisdiction to review an appeal under 8
CMC § 2206 notwithstanding the absence of Rule 54(b) certification); see also Matsunaga v. Matsunaga,
2001 MP 11 ¶ 13 (holding that the Court may hear appeals from non-final orders when expressly allowed
by statute).
be perfected if the trial court takes subsequent action that fully adjudicates the case below). In
this case, defendant’s appeal is not authorized by statute, and for the reasons discussed below,
neither of the common law exceptions to the final judgment rule expressly adopted by this Court,
nor the federal exception most directly applicable (but which has not been adopted by this Court)
provide an exception to the finality requirement that would allow us to exa