THE Estate of Manuel Borja Villagomez, through attorney Robert T. Torres, has asked the federal court to deny the request of the NMI Settlement Fund to issue an order of stay and intervene in the probate proceedings of the decedent.
The estate objects and disagrees with the NMISF’s assertion that the fund’s “claim” does not trigger the probate exception, Torres said.
NMISF attorney Nicole Torres-Ripple has told the District Court for the NMI that the “claim of overpayment of retirement benefits against a decedent is outside the probate court’s jurisdiction in accordance with the NMI Settlement Fund’s administrative appeal process approved by the federal court.”
The NMISF claim, she added, is unrelated to the construction of a will, determination of heirs and successors, and the administration of the probate proceeding.
In a 23-page response to the NMI Settlement Fund’s emergency motion for relief, stay and injunctive relief, the Estate of Villagomez asserted that the probate exception applies and “the particular facts of this matter warrant abstention by this Court so that the issue of the claim pending by the [NMISF] against the Estate should remain before the NMI Probate Court.”
Torres said the NMISF did not request the federal court for direct jurisdiction over the estate.
“Rather, the NMISF seeks a ruling that the exclusive forum for adjudicating the monetary claim against the Estate is not before the CNMI Superior Court in probate proceedings but the NMISF administrative appeals process approved by the [District] Court.”
If the NMISF’s motion is granted, Torres said, “the administratrix of the Estate of Villagomez and all deceased annuitants and class members would be compelled to an administrative forum before the NMISF and not the direct jurisdiction of this District Court.”
“Unfortunately, the [NMISF] Trustee misapprehends a basic tenet of discussion in the probate exception: it is the federal district court that asserts jurisdiction (independently) to adjudicate a claim so long as there is no impediment to the state court proceedings. But the probate exception does not authorize a federal court to redirect a matter of a claim against a deceased purported debtor/pensioner to a pension fund’s administrative hearing officer outside of the NMI District Court by Settlement Agreement.”
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 — proceed exclusively 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, Torres added.
“As such, the statutory process specific to the NMISF set for in 1 CMC §8390 directs collection from a deceased pensioner such as decedent to the NMI Superior Court to pursue the claim from the estate,” he said,
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.
“The CNMI Superior Court retains jurisdiction to adjudicate the NMISF claim,” he reiterated.
He asked the federal court to direct the NMISF to respond to the administratrix’s request for clarification and information “so as not to frustrate her in the exercise of her responsibilities and so she can determine whether or not to disallow the claim of overpayment or non-payment by the Estate.”
Court hearing
Designated Judge Frances Tydingco-Gatewood will hear the motion of the NMISF on Feb. 1 at 9 a.m.
According to the emergency motion, the NMI Settlement Fund has a claim against the Estate of Manuel Borja Villagomez based on an overpayment in retirement benefits paid prior to his passing.
Villagomez, who passed away on May 10, 2021, was a member of the Settlement Class at the time of his death.
The NMI Settlement Fund said it is a creditor of the estate, and timely filed a notice of claim in the probate action (Superior Court) on Nov. 1, 2021.
The NMISF seeks a stay, injunction and declaratory relief for the probate case and an order declaring that the District Court has exclusive jurisdiction over any matters pertaining to or arising under the settlement agreement.
The NMSF was created by the federal court as part of the 2013 settlement agreement between the CNMI government and retirees who filed a lawsuit over the Commonwealth’s failure to timely and regularly remit its contributions to the NMI Retirement Fund.
Local court
For his part, Superior Court Associate Judge Joseph N. Camacho, who presides over probate proceedings in the local court, has vacated deadlines and the hearing date on the creditor claim issue. He has also set a hearing on NMISF’s motion to stay for April 4, at 10 a.m.
District Court for the NMI
