The Fund, represented by attorney Braddock Huesman, is also asking the federal court to award attorney’s fees against retiree Sapuro Rayphand and private attorney Bruce Jorgensen.
The Commonwealth Retirees Association, as intervener and represented by board member Rayphand, informed the federal court on Sept. 8, 2011 of the “automatic removal” of the Fund’s lawsuit against the government from the CNMI Superior Court.
Jorgensen, currently representing two anonymous retirees who are asking the federal court to place the Fund under federal receivership, will also represent the CRA in this latest lawsuit.
Rayphand “cannot remove this case from state court to federal court because it is not a defendant,” stated Huesman in his written memorandum of law.
Huesman said Rayphand “cannot remove this case from state court to federal court because none of the defendants have agreed to removal.”
The Fund’s lawyer further argued: “Mr. Rayphand cannot remove this case from state court to federal court because there is no federal question jurisdiction, and therefore no federal jurisdiction to hear this case federal question jurisdiction,” adding, the “notice was untimely.”
In asking for attorney’s fees, Huesman said the original removal notice, “whether drafted by Mr. Jorgensen or Mr. Rayphand, violates commonwealth law, as it is the practice of law without license (Mr. Rayphand is not an attorney but purporting to represent that association, and Mr. Jorgensen is not licensed to practice law in the CNMI state courts).”
Rayphand and Jorgensen, according to Huesman, “had no basis, objective, or otherwise, to file the notice of removal, and the Fund is entitled to its fees and costs in filing this motion to remand from Mr. Jorgensen and Mr. Rayphand, jointly and severally.”
In conclusion, Huesman said: “The state of Fund finds itself in is tragic. Years and years of meaningless political promises coupled with events beyond the commonwealth’s control have conspired to place the Fund in a dire position. Adding further injury are frivolous claims and lawsuits against the Fund itself, which are only serving to impede the Fund from protecting its members to the fullest extent possible.”
In this case, Huesman said “Mr. Rayphand filed a notice of removal which was completely devoid of merit, and has forced the Fund to incur further time, money, and energy at a time when it can least afford to lose its focus.”
Assistant Attorney General Michael A. Stanker, who is representing the defendants, filed a declaration that “defendants never authorized” CRA to file a notice of removal on their behalf.
Stanker said the defendants “do not want” the lawsuit removed to the federal court, and wants the same lawsuit remanded to the CNMI Superior Court for further proceedings.
In 2006, the Fund sued the commonwealth government in CNMI Superior Court. Gov. Benigno R. Fitial in his official capacity, and former Finance secretary, and now Lt. Gov. Eloy Inos, in his official capacity as then-Finance secretary, were named co-defendants.
The Fund obtained an initial judgment of over $230 million in April 2009.
The Fund acquired an adjustment of the judgment, and it now stands at over $300 million, according to court documents.
