Vol. 34 No.240
       ©2006 Marianas Variety
Monday, February 19, 2007 www.mvariety.com
Serving the CNMI for 34 years
 

© 2006 Marianas Variety
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Opening Retirement Fund assets to exposure via lawsuit

IT would seem that recent CNMI retirees, by effect of their employment with the local government, are contractually entitled to full Retirement Fund benefits. No question about it. It’s not the fault of the recent retirees, or RRs, that the CNMI government failed to pay into the Fund the monies required to have been paid under the law broken by the CNMI government, is it? And it’s not the fault of the RRs that the Fund and/or current/past Fund officials failed to timely, effectively, meaningfully, and aggressively prosecute this matter by way of civil action in the U.S. court, is it? And it’s not the fault of the RRs that the CNMI and Fund officials who over the years have perpetuated this fiasco neglected or failed or were simply unwilling to obtain professional liability insurance coverage as to such matters, is it?
And so if the Fund does not pay those benefits, of course the RRs may certainly sue the CNMI government for breach of contract etc. at Guma In Hustisia. But this might not be a very attractive option — given the CNMI’s poor financial condition upon which it will likely premise a contention that it simply can’t pay (though it can finance Hawaiian-vacations-for-30 and last minute jet flights to D.C. hearings at which...gee golly whiz...the Gub’nor hisself won’t attend though, if he did, he might get to answer some questons about his “good friend” Honest Abe Abramoff and the $10 million in payments orchestrated into Abramoff’s pockets rather than to the Fund’s retirees’).
Consequently, what entity/person(s) will the RRs look towards and sue if they are not paid full, 100 percent, retirement benefits as expressly or impliedly required by effect of their longtime CNMI employment? The Fund, its board, its officials, etc. of course. Both for obvious liability reasons. But more importantly, because the Fund has deep pockets and is flush with assets...and so the Fund when it loses will be required to use Fund assets not only to compensate these RRs but also to pay all of the legal costs incurred on behalf of the RRs — with the Fund then, of course, entitled to seek recovery of a portion of these fees (and related financial claims) from the broke CNMI government.
The positive aspect might, at the very least, be the probability that RRs will file the action in the U.S. court, obtain a swift judgment on behalf of themselves versus the Fund and the CNMI — as well as a judgment on behalf of the RRs and all other retirees versus the CNMI for delinquent payments to the Fund (which, in turn, will at least give the Fund creditor-preference which it now lacks having failed/neglected to seek/obtain a judgment (stipulated or otherwise) versus the CNMI in the long-pending civil action foolishly filed in the Guma In Hustisia rather than the U.S. court last summer)?
And of course — whether or not the Fund acts pursuant to some new CNMI law or via change in Fund policy — the Fund will likely be liable for 100 percent of the RR’s claims (joint/several liability).
But the now BenTan-headed Fund must know all of this. But doesn’t mind draining the Fund’s assets even more than it has done via non-payment of Fund debt over the past?
And so the Fund appears to be putting at risk, for purposes of political expedience (or perhaps less likely out of sheer stupidity/inanity), the very assets the Fund is supposed to protect?
I’m waiting for a call or e-mail or contact from any one of the RRs for whom I shall remain willing to arrange legal representation in a civil lawsuit versus the Fund/board/officials and/or the CNMI, in the U.S. court, as to this latest travesty soon to be brought to you by the flunkies of that Friend-Of-The-Honest-Abramoff-$10 million-Paid-Man...BenTan, our Garmently Endowed-Gub’nor... who’s not gone to D.C., for who-knows-why, but is now being visited, by the FBI?


BRUCE L. JORGENSEN
Peshawar, Pakistan