Federal court grants Settlement Fund request in overpayment claim

THE federal court on Thursday granted the NMI Settlement Fund’s request and will intervene in the overpayment claim against the Estate of Manuel B. Villagomez.

District Court for the NMI Designated Judge Frances Tydingco-Gatewood, in a 16-page order, granted the NMISF trustee’s emergency motion.

Judge Tydingco-Gatewood found that the District Court for the NMI has exclusive jurisdiction to interpret and enforce the Settlement Agreement. 

She likewise finds that the probate exception does not apply in the case.

The judge directed the administratrix of the Estate of Manuel B. Villagomez, Collen Villagomez, to proceed with the appeals process, including mandatory mediation.

The judge likewise enjoined the administratrix from taking any action in the CNMI Superior Court   to challenge the Settlement Fund’s claim until such time as the administrative appeals process has been exhausted.

 The NMI Settlement Fund, through attorney Nicole Torres-Ripple, told the court that despite extensive settlement efforts over the past nine months and substantial concessions, the parties have not reached a settlement.

“The Settlement Fund believes that a significant factor preventing settlement is the Administratrix’s refusal to engage in mandatory mediation through the Settlement Fund’s administrative process on the basis that she (or the Estate) is not subject to the Settlement Fund Appeal Rules and Procedures,” Torres-Ripple added. 

The NMI Settlement Fund has requested the District Court for the NMI to intervene and order a stay in the probate proceedings of the Estate of Manuel Villagomez in Superior Court. 

Manuel B. Villagomez, who passed away on May 10, 2021, was a member of the Settlement Class at the time of his death. 

The NMISF is claiming an overpayment to the decedent in the amount of $45,680.36 calculated as of April 30, 2012. 

The NMISF later reduced its overpayment claims to $12,717.73. 

According to its emergency motion, the NMISF has a claim against the Estate of Manuel Villagomez based on an overpayment in retirement benefits paid prior to his passing.  

The estate is represented by attorney Robert T. Torres.

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