“Persons within the third degree of relationship to my spouse, John A. Manglona, are minority shareholders in defendant corporation. Because they have an interest that could be substantially affected by the outcome of the litigation, I must disqualify myself from participating in this matter,” said the federal judge in her one-page written order.
She directed the clerk of court to refer this matter immediately to U.S. Court of Appeals for the Ninth Circuit Chief Judge Alex Kozinski for reassignment to another judge.
Judge Manglona also granted the corporation’s request to file its response until Dec. 30, 2011.
The U.S. Department of Justice tax division is asking the federal court to determine and adjudge that Rota Coconut Village Hotel is indebted to the federal government in the amount of $148,347.65 for the federal tax liabilities, plus interest and other statutory additions as provided by law.


