Tue. Aug 20th, 2019

Court grants TRO, block sales of Sea Passion shares

Sea Passion Hotel. Photo courtesy: Sea Passion Hotel Facebook page

A rapid response to the filed request for a Temporary Restraining Order against the public auction of Sea Passion shares was granted by the Court yesterday to Mr. Chiu Hung-Chao and his family, the Intervenors to the Civil Action No. 18-098.

The Order issued by Associate Justice Kathleen Salii, granted the TRO and set a hearing date to determine whether or not to make the Restraining Order permanent.

The case, which was brought by former shareholder and incorporator of Sea Passion Corporation Mr. Chiang Shui-Lang and nine other former shareholders of Sea Passion against six (6) other shareholders was adjudicated in favor of plaintiffs Chiang Shui-Lang.   A Court Order was issued to sell the shares of the  remaining six (6) shareholders to satisfy the default judgment.  Public auction of the shares was slated for tomorrow, June 5th.

A motion to Intervene was filed by a Mr. Chiu Hung-Chao to prevent the sale of such shares claiming that the six (6) defendants sued by Mr. Chiang Shui-Lang have already sold their shares to him and his family and that to sell shares that do not belong to these six defendants would be miscarriage of justice.

Plaintiffs responded to the Interveners by filing an Opposition, calling the Motion to Intervene as untimely and a trick to prolong injustice to them.

Mr. Chiu Hung-Chao and his family, the Interveners, in response to Opposition filed by Plaintiffs to deny granting of TRO, provided minutes of Foreign Investment Board meeting of May 23, 2019 determining that the Plaintiffs in Civil Case 18-098 no longer have ownership of the remaining 60% of the shares of Sea Passion Corporation and that those shares have been transferred to new shareholders.

In his Motion to Intervene, Mr. Hung-Chao asserts that the case filed against the six defendants was fraudulent as the Plaintiffs already knew he had bought the remaining shares of Sea Passion Corporation and was now the sole owner.

The public sales of Sea Passion shares will no longer take tomorrow and a hearing to determine whether the TRO shall become a permanent injunction will be held on June 13, 2019. (By L.N. Reklai)