DISTRICT Court for the NMI Designated Judge Frances Tydingco-Gatewood will hear the motion of the NMI Settlement Fund, which asks the federal court to intervene and order a stay in a probate proceeding in the CNMI Superior Court on Feb. 1 at 9 a.m.
Based on the representations in the Settlement Fund’s emergency motion and the declarations filed in support of the motion, the federal court finds good cause to expedite the briefing and hearing on this matter, Judge Tydingco-Gatewood said in an order issued Wednesday.
“The Settlement Fund shall file a supplemental brief, no later than January 21, that discusses whether the probate exception to federal jurisdiction is applicable here,” the judge added.
Judge Tydingco-Gatewood directed the Settlement Fund to serve a copy of the issued order on all parties, including the administratrix of the estate of Manuel B. Villagomez and her counsel, Robert T. Torres.
Failure to file a response to the emergency motion and supplemental brief shall be viewed as non-opposition to the motion, the judge added.
Manuel B. Villagomez, who passed away on May 10, 2021, was a member of the Settlement Class at the time of his death, Settlement Fund or SF attorney Nicole Torres-Ripple said.
The 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.
The SF said its claim is based on an overpayment to Villagomez in the amount of $45,680.36 calculated as of April 30, 2012.
The SF said that 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 administratrix, for her part, is asserting in the probate action that the SF claim is not subject to the administrative appeals.
“Specifically, the administratrix has asked the NMI Superior Court for an order declaring that the NMI Superior Court has jurisdiction over this matter and that the administrative appeals process should be disregarded,” the SF said.
It added that the administratrix’s challenge to the 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 resolve through the administrative appeals process.”
The Settlement Fund is seeking an order from the District Court declaring that it has exclusive jurisdiction over any matters pertaining to or arising under the settlement agreement.
The SF also requested for an order directing a stay of all proceedings by any court outside the NMI District Court from issuing orders adjudicating rights and liabilities of Settlement Fund or its members pertaining to the settlement agreement.
The SF likewise requested an order enjoining 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.
A stay is necessary to protect the federal court’s jurisdiction and to preserve and enforce its judgment, the SF said.
“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.”
Local court ruling
Superior Court Associate Judge Joseph N. Camacho on Thursday said the Settlement Fund “misapprehends and conflates the posture of the issues before the court.”
In his order, Judge Camacho vacated the deadlines and hearing date on the creditor claim issue, and set a hearing on SF’s motion to stay in the local court.
He noted that on Aug. 16, 2021, the probate proceeding was opened when the Verified Petition to Admit Estate into Probate and Appointment of Administratrix was filed.
On Nov. 1, 2021, attorney Nicole M. Torres-Ripple entered her appearance on behalf of the NMI Settlement Fund.
The SF then filed a notice of claim submitting to the jurisdiction of the probate court.
On Jan. 6, 2022, a status conference was held and “based on the matter adduced, a briefing schedule and a hearing date for an evidentiary hearing was set on SF’s creditor claim.”
As instructed by the local trial court, on Jan. 11, 2022, the estate of Manuel B. Villagomez filed the proposed order memorializing the briefing schedule and hearing date on the SF’s creditor, claim which the court granted in part.
For its part, the SF filed its Statement Re: Order Setting Briefing Schedule Regarding the Creditor’s Claim by the Settlement Fund.
A “notice” is not the same thing as a “motion,” Judge Camacho said.
“It is important to note that at no time did SF file an actual motion so the court could properly set a briefing schedule and motion hearing date,” he added.
On Jan. 11, 2022, Judge Camacho denied in part SF’s statement regarding the order setting a briefing schedule on the Settlement Fund’s creditor’s claim.
On Jan. 18, 2022, the SF filed a notice of ex parte emergency motion Under Local Rule 7.1(f) for declaratory relief, stay, and injunctive relief.
Judge Camacho again noted that “notice” is not the same thing as a “motion.”
On Jan. 19, 2022, the SF filed an emergency motion for temporary stay of proceedings.
However, Judge Camacho said the motion is “barely two pages containing conclusionary statement that the U.S. District Court has jurisdiction.”
He added, “It is worth noting that this is the first written motion to stay that has been formally filed before this court.”
Judge Camacho directed the SF to supplement its legal memorandum/motion to stay with legal authority, if any, “and provide legal analysis so the court and the parties can better understand its position and avoid unnecessary waste of judiciary resources and to facilitate a robust record.”
Judge Camacho scheduled an evidentiary/motion hearing on the SF’s motion to stay for April 4, at 10 a.m.
The United States Courthouse in Gualo Rai, Saipan.
