Westenberger v. Atalig
CourtSupreme Court of The Commonwealth of The Northern Mariana Islands
Date FiledFebruary 5, 1993
JudgeDela Cruz, Villagomez, Borja
StatusPublished
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Full Opinion
CLERK OF CO
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SUPREME COUR
T CNMI
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FOR PUBLICATION
BY: -&B·�1��L
IN THE SUPREME COURT OF THE
NORTHERN HARIANA
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ISLAND
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COMMONWEALTH OF THE
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ISABELL� LIZAMA WESTENBERGER, ) APPEAL HO. 91-038
Administratrix of the Estate ) CIVIL ACTION HO. 88-878
of Ignacio c. Lizama, Deceased1 )
)
Plaintiff/Appellant, )
)
vs. ) OPINION
)
ESTE FANIA ATALIG, )
)
Defendant/Appellee. )
____ )
Argued and Submitted September 3, 1992
Counsel for Plaintiff/Appellant: Juan T. Lizama
P.O. Box 1508
Saipan, MP 96950
Counsel for Defendant/Appellee: WISEMAN & E A SON
P.O. Box 2607
Saipan, MP 96950
BEFORE: DELA CRUZ, Chief Justice, VILLAGOME Z and BORJA, Justices.
VILLAGOMEZ, Justice:
BACKGROUND
Isabella Lizama Westenberger ("Isabella" or "Administratrix11),
as administratrix of the estate of Ignacio c. Lizama ("Lizama"},
deceased, filed suit against Estefania Atalig ("Estefania") on
December 1, 1988, on behalf of the estate, to seek specific
performance of an oral land exchange regarding Lot No. 005 R 15,
(hereafter Lot No. 15) situated in Songsong Village, Rota, and for
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general damages. The complaint alleged that sometime in 1959,
Lizama received the disputed land from Estefania's father, Juan
Jose T. Atalig ("Atalig"), through an oral agreement to exchange.
In exchange for Lo t No. 15, Lizama transferred to Atalig his
village lot, No. 004 R 36, (hereafter Lot No. 36), also situated in
Songsong Village. The complaint further alleged that because
Estefania has occupied Lot No. 15 since 1985 without permission of
the Administratrix or the other heirs of Lizama they (not the
estate of Lizama) have suffered general damages in the amount of
$20,000.1
The case went to trial in January and February of 1990, and on
January 3, 1991, the trial court issued an order containing its
findings of fact and conclusions of law. The court found as
follows: that there was an oral agreement between Lizama and Atalig
to exchange Lizama's Lot No. 36 for Atalig's Lot No. 15; that
Estefania constructe d a wooden house on Lot No. 15 in 1979 and in
1987 replaced the wooden house with a concrete house; and that
Estefania and her mother have been living on Lot 15 since 1979.
The trial court further found "that the defendant ( Estefania]
knew of this oral agreement (between Lizama and Atalig] and ran the
risk of losing the property when she built the house on Lot No.
15." Finally, the court found that Isabella was advise d in 1 981 by
the Land Commission to bring this action.
Since it found that the Administratrix was dilatory in filing
this action, the trial court concluded that Isabella was not
1 The c�plaint is silent as to what the general damages consisted of.
474
entitled to damages. It concluded, however, that she must pay
restitution to Estefania in an amount equal to the replacement cost
of Estefania's house and other improvements made on Lot 15. The
court granted the request for specific performance dnd orde�ed the
parties to execute quitclaim deeds of exchange after restitution
had been settled. On November 14, 1991, the trial court ordered
Isabella to pay $50,000.00 to Estefania as restitution.
The Administratrix timely appealed.2
On appeal, Isabella contends that the trial court erred (1) in
a-:varding restitution to Estefania;3 (2) in basing the restitution
on the cost of replacing the improvements on the property, rather
than the actual value of the improvements; and (3) in not
offsetting the amount of restitution with the rental value of
Estefania's unlawful occupancy of the property.
2
We are not �ersuac�� ty Estefania•s ar;��nt that th2 ap���l was untimely. Estefaoia er;u�s that
the January 3, 1991, order .. is a �inal j�Qt for two reasons. First, because it used the phrase "t401l
THEREFCRE, IT IS HERESY ORDERED, ADJCDGED AND DECREED." Second, because this language is ecntained on page lS
of 'the order, while the rest of the order is contained on pages 1 through 14, thus, it is a "judgment • • • set
forth in a seearate document," in accordance with Rule 58(2) Com.R.Civ.P. (Emphasis added.) Therefore, the
appeal should have been filed within 30 days of January 3, 1991.
These arguments have no merit. The use of the phrase "ordered, adj\X!ged and decreed" per se does not
.��'an order a final judgment. Estefani�•s position that putting such languaJe on the 1Sth page of a 16-page
order constitutes the setting forth of a judgment on a separate document, as requir� by Rule 58 (2 ), is
misleading.
Ordinarily, an order ·mieh establishes liability without fixing the amount of rec.>very is not final.
lucky v. Tokai, No. 91-003, (N.M.I. April 20, 1992>; liberty Mutual Ins. Co. v. Yetzel, 424 U.S. 737 (1976).
But it may be final if the determination of damages will be mechanical and uneontroversial. Parks v. Pavkovie,
753 f.2d 1397 (7th Cir. 1985). To be final, for appeal purposes, a judgment must fully inform the losing party
of the extent of the remedy afforded against her. Kearns v. Shillinger, 823 F.Zd 399 (10th Cir. 1987). Here,
the order of January 3 , 1991, did not fix the amount of restitution to be paid; the amount of restitution was
highly controversial; and the order failed to inform Isabella of the extent of the remedy afforded against her,
until the order of restitution was issued. Consequently, the order of January 3, 1991, was not final for
purposes of an appeal.
We suggest that when a party contends that we laek jurisdiction, that party should move to dismiss on
that ground in the early stage of the appeal. If we do not have jurisdiction, 'Ke should make that d�eision
before we get into the merits of the appeal.
3
Whether Estefania is entitled to restitution under the facts of this ease is a Guestion of law which
we review de !JSr!2. Since we will not address the second and third issues, as explained infra, there is no need
to state the applicable standard of review for such issues.
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AA.'lALYSIS
For the reasons set forth below, we hold that Estefania is
not, as a matter of law, entitled to restitution. Therefore, we
need not address the standard by which the restitution should be
computed or whether such restitution should be offset by the rental
value of Estefania's unauthorized occupancy of the land.4
We have previously held that since the CNMI has no
"betterment'' statute permitting reimbursement for improvements
constructed in good faith on property of another by mistake, and
since there is no local customary law on the point, the applicable
law is the Restatement of Restitution (1937). Repeki v. MAC Homes,
5
No. 90-0002 (N.M.I. March 14, 1991).
In l1AC Homes, we ruled that an improver of another person's
real property is entitled to restitution for the improvement if the
improver (1) is in possession of the property adverse to the owner,
(2) possesses under color or claim of title, and ( 3) constructs the
improvement in good faith. MAC Homes, slip op. at 11. There is no
question that Estefania possesses the property adverse to the
estate of Lizama under claim of title. However, as in MAC Homes,
our decision in this case hinges upon analysis of the third
criterion, the requirement of good faith.
4 The complaint neither alleged nor prayed for specific damages for� profits. (Mesne profit is
the value of the use of land wrongfully occupied and is commonly measured in terms of rents and profits.
Black's law Dictionary, 892 (5th Ed. J979).) No evtdence was adduced at trial to establish rental value for
the use of the land by Estefania. This issue is being raised for the first time on appeal ar� it raises both
legal and factual q�estions. Therefore, we shall not address it. In re Seman, No. 90·048 (N.H.!. April 3,
1992).
5
�e note that although the trial court order was issued prior to our decision in �AC Homes, the same
rule of law applied.
476
Good faith exists when there is "an honest belief on the part
of the occupant that [she) has secured a good title to the property
in question, and that there are no adverse claims.11 MAC Homes at
16. In MAC Homes, we also stated:
As a general rule, an occupant is regarded as
an occupant in bad faith and not entitled to
compensation for (her] improvements, where,
and only where, (she] has either actual notice
of the adverse title, or what is equivalent
thereto, such as where there is brought horne
to [her] notice of some fact or circumstance
that would put a (person] of ordinary prudence
to such an inquiry as would, if honestly
followed, lead to a knowledge of the adverse
title.
Id. at 17, guoting1 47 C.J. S. Improvements§ 7 (1944).
The crucial finding of fact made by the trial court relevant
to this issue is that Estefania knew of the oral agreement between
Lizama and Atalig and ran the risk of losing the property when she
built the house on Lot No. 15.0 This means that Estefania had
actual knowledge of the oral agreement and knowingly risked losing
7
the property when she made the improvements thereon. The factual
findings of the trial court negates good faith.
The trial court's finding of fact regarding Estefania's
knowledge of the oral agreement is not disputed. Therefore, we are
bound by that finding8 and must apply the law to the facts. In
6 Estefania testified that her famHy moved from Lot !lo. 15 to lot No. 36 in 1959 �<hen she was 20 years
old. She also heard about the exchange in 1977 and moved into a house oo Lot No. 36 when she returned to Rota
from Saipan. She moved onto Lot No. 1 5 thereafter.
7 Even if she did not have actual knowledge, the finding establishes that she at least had the
equivalent thereto. She had notice of some fact or circunstanee that would put her to such an inquiry as would,
if honestly followed, lead to her knowledge of the adverse title.
8 tn re Estate of Rofas, No. 89·019 (�.M.I. february 22, 1991).
477
doing so, we must conclude that Estefania did not make the
improvements on Lot 15 in good faith because she knew that her
father had exchanged the land for Lizama's land. For that reason,
she is not entitled to restitution under the principles set forth
in MAC Homes.
CONCLUSION
For the above reasons, we REVERSE and VACATE that portion of
the trial court order dated January 3, 199L, granting Estefania
restitution and the order of restitution dated November 14, 1991,
and REMAND this case for further proceedings consistent with this
opinion.
-�
Dated this :::> day of ( � �1-'\V\ct zl I(' 1 1993.
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JOSE S. DELA CRUZ, Chief Justice
C!.
BORJA, Associate
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