By Gina Tabonares
Variety News Staff

THE late submission of the preliminary settlement agreement between Gov. Felix P. Camacho and the earned income tax credit classes delayed the anticipated federal court ruling on the case.
U.S. District Court Chief Judge Frances Tydingco-Gatewood was expected to issue a ruling late yesterday afternoon in anticipation of the filing of the revised preliminary settlement agreement no later than 12 noon.
However, the document was not submitted until late in the afternoon, according to Mike Phillips, lead counsel for the consolidated EITC cases.
He said the district court needs extra time to carefully review the revised agreement so the anticipated opinion is expected today instead.
Phillips said there were only a few changes in the agreement but the document is voluminous and it took time before signatories could review each page.
Signatories to the agreement include the lawyers for the governor, counsels for the two EITC classes—the Santos et al and the Torres groups—the directors of the Department of Administration, the Department of Revenue and Taxation, and the Bureau of Budget and Management Research.
If the court approves the preliminary agreement, then the Camacho administration can start processing the payment of EITC refunds to 1997 and 1998 claimants using the $10 million set aside by the government.
A fairness hearing will be scheduled immediately to hear any objections on the $90 million settlement agreement.
Phillips, counsel for the Santos group, and Peter Perez, lawyer for the Torres group, consolidated their cases and entered into an agreement with Camacho’s lawyers on May 26, 2006.
The Camacho administration earlier made a $60 million settlement agreement with the Santos class but this was blocked by several court challenges raised by former Attorney General Douglas Moylan.
Mediation resulted in the consolidation of the Santos and Torres classes, leaving the Simpao class out of the primary settlement with the governor.
Based on the settlement agreement, the government will pay the EITC class not more than $15 million for their claims for tax years 1995, 1996, 1999 and 2000. The amount will be divided proportionally among each claimant found eligible for the EITC by the Guam Department of Revenue and Taxation based on the value of their claim, up to 100 percent.
The same amount will be divided equally among each claimant found eligible for tax years 2001, 2002, 2003 and 2004.