Federated States of Micronesia (FSM) Supreme Court dismissed 3 out of the 7 counts brought against the Bank of Guam (BOG) in a civil suit by FSM residents and citizens depositors regarding the disbursement of US Cares Act Stimulus payments.  The court ordered the bank to respond to the remaining 4 charges by September 27th.

In a ruling issued on September 6th, the FSM court dismissed Count 3 on violation of due process, Count 5 on allegation of fraud, and Count 6 on allegation theft.

The court ruled that there were no due process violations because the defendant was not government and that due process protects persons from governments not actions of private parties.  On Count 5, the court said that in the allegation of fraud, plaintiffs did not follow Civil Procedure Rule 9 (b) which requires the plaintiff alleging fraud to identify specific statements and actions such as time, place, and content of fact misrepresented.  On dismissal of count 6 of theft, the court said that theft was not a civil cause of action.

The court then ordered the plaintiff, Bank of Guam to respond to the remaining 4 counts alleged by the plaintiffs, Breach of Contract, Breach of Fiduciary Duty, Violation of the Consumer Protection Act, and Conversion no later than September 27, 2021.

Early this year, a group of FSM residents and citizens filed a civil suit against Bank of Guam over the issue of the disbursement of US CARES Act Pandemic Stimulus payments.  In their suit, they alleged Bank of Guam returned their US Stimulus checks to IRS without their knowledge or agreement. Bank of Guam countered the suit claiming that they were not the right party to sue and that plaintiffs were attempting to defraud US IRS and filed to have the suit against them dismissed.

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