THE NMI Settlement Fund, through attorney Nicole M. Torres-Ripple, has requested the federal court to intervene and order a stay in the probate proceeding 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.
Torres-Ripple said the Settlement Fund or SF is a creditor of the estate, and it timely filed a notice of claim in the probate action in Superior Court on Nov. 1, 2021.
She said the SF claim is based on an overpayment to decedent in the amount of $45,680.36 calculated as of April 30, 2012.
The settlement agreement mandates that all SF claims must be adjudicated in accordance with the administrative appeals process and the NMI Settlement Fund appeal rules and procedures approved by the federal court.
The Villagomez estate administratrix is asserting in the probate action that the SF claim is not subject to administrative appeals, Torres-Ripple said.
“Specifically, the administratrix has asked the NMI Superior Court for an order declaring that [it] has jurisdiction over this matter and that the administrative appeals process should be disregarded,” she added.
She said the administratrix’s challenge “to this District Court’s order raises important jurisdictional issues and substantive issues, and on its face conflicts with the federal court’s order that all Settlement Fund claims shall be resolved through the administrative appeals process.”
On Jan. 11, 2022, the Settlement Fund requested a stay of the probate action to allow the Settlement Fund to obtain guidance on the jurisdictional issues from the District Court.
But the request was denied by the probate court within 30 minutes of being filed, Torres-Ripple said.
The probate court, with Associate Judge Joseph N. Camacho presiding, also shortened the time for the parties to file a brief on the jurisdictional issues by no later than Jan. 20, 2022. The original due date was Feb. 7, 2022.
The probate court further ordered that failure “to file the motion/brief regarding jurisdiction shall be viewed as a waiver of jurisdiction and/or the Settlement Fund has abandoned its position on the issue of jurisdiction.”
The Settlement Fund seeks a stay, injunction and declaratory relief, Torres-Ripple said.
The SF is also seeking an order declaring that the District Court has exclusive jurisdiction over any matters pertaining to or arising under the Settlement Agreement.
In addition, the SF wants the District Court to direct a stay of all proceedings by any court outside the NMI District Court from issuing orders adjudicating the rights and liabilities of the Settlement Fund or its members pertaining to the settlement agreement.
Moreover, the District Court should enjoin the administratrix from asserting any claims or defenses, or seeking any relief related to the settlement agreement and the Settlement Fund’s claim against the decedent Manuel B. Villagomez in any court other than the NMI District Court, the SF added.
“If the administratrix’s motion in the probate action is successful, it would…subject the Settlement Fund (and retirees) to multiple litigation and attendant costs and expenses,” the SF said.
A stay is necessary to protect the federal court’s jurisdiction and to preserve and enforce its judgment, the Settlement Fund added.
