Another motion filed in federal court to remand Fund lawsuit

Gov. Benigno R. Fitial and Lt. Gov. Eloy S. Inos filed the joinder motion to remand through Assistant Attorney General Michael A. Stanker.

Fitial and Inos were sued in their official capacities as governor and then-former Finance secretary.

The Fund, represented by attorney Braddock Huesman, is also asking the federal court to order retiree Sapuro Rayphand and attorney Bruce Jorgensen to pay attorney’s fees.

The Commonwealth Retirees Association, as intervener and represented by board member Rayphand, informed the federal court on Sept. 8, 2011 of the “automatic removal” of the Fund’s lawsuit against the government from the CNMI Superior Court.

But Rayphand “cannot remove this case from state court to federal court because it is not a defendant,” stated Huesman in his written memorandum of law.

Huesman said Rayphand “cannot remove this case from state court to federal court because none of the defendants have agreed to removal.”

The Fund’s lawyer further argued: “Mr. Rayphand cannot remove this case from state court to federal court because there is no federal question jurisdiction, and therefore no federal question,” adding, the “notice was untimely.”

Rayphand, in an earlier interview, said he has standing being a retiree to request removal of the case.

The Commonwealth Retirees Association, for its part, is convening its members on Sept. 29 to decide whether to support Rayphand’s move for an automatic removal.

Jorgensen, currently representing two anonymous retirees who are asking the federal court to place the Fund under federal receivership, will also represent the CRA in this latest lawsuit.

In 2006, the Fund sued Fitial and Inos in CNMI Superior Court.

The Fund obtained an initial judgment of over $230 million in April 2009.

The Fund acquired an adjustment of the judgment, and it now stands at over $300 million, according to court documents.

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