ATTORNEY Nicole Torres-Ripple who represents the NMI Settlement Fund in a dispute regarding an alleged overpayment in the retirement benefits of a deceased member, told the federal court that the parties were not able to reach an agreement.
Since the February 3, 2022 hearing on the Settlement Fund’s Ex Parte Emergency Motion for Declaratory Relief, Stay and Injunctive Relief, the parties had in good faith engaged in extensive settlement discussions, but unfortunately, were not able to settle the dispute, Torres-Ripple added.
The lawyer filed a second status report to the District Court for the NMI on April 1.
She said because the stay of the briefing schedule and hearing in the CNMI Superior Court case, “In Re Estate of Manuel B. Villagomez, Civil Case No. 21-0234-CV,” will expire on April 4, 2022, the federal court’s written decision will be helpful to provide guidance to the parties.
The NMI Settlement Fund or NMISF, and its trustee, Joyce Tang, through Torres-Ripple, filed a claim in the probate of the Estate of Manuel B. Villagomez related to what the Settlement Fund said was an overpayment in retirement benefits amounting to over $56,000 prior to Villagomez’s passing on May 10, 2021.
The NMISF said it is a creditor of the estate, and it timely filed a Notice of Claim in the Probate Action (Superior Court) on Nov. 1, 2021.
Torres-Ripple said the “claim of overpayment of retirement benefits against a decedent is outside the probate court’s jurisdiction in accordance with the NMISF’s administrative appeal process approved by the federal court.”
The NMISF’s claim, she added, is unrelated to the construction of a will, determination of heirs and successors, and the administration of the probate proceeding.
The Estate of Villagomez, and its administrator Colleen V. Manglona, through attorney Robert T. Torres, asked the federal court to deny the request of the NMISF to issue an order of stay and intervene in the probate proceedings of the decedent.
Attorney Torres said when the decedent died, his property/estate and claims against him — including that of the NMISF which is seeking an amount of $56,913.77 against the estate — are subject to the CNMI Probate Code in CNMI probate court.
The administrative proceeding against the decedent was “no more” after he died since the NMISF never afforded him that due process, the lawyer added.
Because there is no subject-matter jurisdiction and/or because the probate exception applies to the Estate of Villagomez, the federal court does not have jurisdiction, Torres said.
