FOLLOWING a stipulation from the parties that they have reached a settlement agreement, Chief Judge Ramona V. Manglona of the District Court for the NMI dismissed with prejudice the lawsuit of Division of Customs and Bio-Security Director Jose C. Mafnas against former Finance Secretary David DLG Atalig, and former Chief of Staff William Castro.
The judge issued the order on Thursday and directed the clerk of court to close the case.
In dismissing the case, she said, each party will bear its own costs and fees.
“The court retains jurisdiction to enforce the settlement agreement reached between the parties,” she added. “The court’s June 14, 2023, order to show cause against plaintiff is discharged and the hearing thereon scheduled for July 5, 2023, at 10 a.m. is vacated,”
Last year, Mafnas filed a complaint in the federal court and named as defendants William M. Castro, in his personal capacity and in his official capacity as the governor’s chief of staff; David DLG Atalig, in his personal capacity and in his official capacity as secretary of Finance; and the CNMI government.
Mafnas asked the court, among other things, to prevent Atalig from removing Mafnas from his position as Customs director “or to otherwise reinstate [him] pending a decision on the merits” of his complaint.
Mafnas sought reasonable attorney’s fees and costs, compensatory damages, punitive damages, damages in an amount to be determined according to proof, and “for such other relief as the court believes justice requires.”
Mafnas was represented by attorney Charity Hodson.
Assistant Attorney General Leslie Healer represented Atalig and Castro in their official capacity while attorney Matthew T. Gregory represented Atalig, in his personal capacity, and attorney Colin M. Thompson represented Castro, in his personal capacity.
On Aug. 15, 2022, Judge Manglona issued a preliminary injunction in favor of Mafnas “to preserve the status quo based on the parties’ stipulation.”
In his lawsuit, Mafnas, a civil service employee, said he was transferred to a non-existent position in the Department of Commerce because he was supporting the independent gubernatorial candidacy of then-Lt. Gov. Arnold I. Palacios, who won the election.
Jose Mafnas


