Court grants motion for substitution of parties in Retirement Fund lawsuit

Gatewood said the Retirement Fund lawsuit, filed by “Jane Roe and John Doe” against the CNMI government represented by Gov. Benigno R. Fitial “has been stayed in all substantive respects.”

But the court said it will consider administrative matters, such as substitution of counsel or parties.

Attorney Bruce L. Jorgensen  filed on Friday an emergency motion, asking the federal court for the issuance of a temporary restraining order and further legal and equitable relief as to the effect on the Retirement Fund of the CNMI’s constitutionally mandated government shutdown.

Gatewood granted the motion for substitution of parties, “but does not consider it in any other respect.”

David L. Price,  former Rep. Tina Sablan and Carmela Sablan  are now the plaintiffs in the case.

Should the plaintiffs “wish the [federal] court to consider their motion further, they shall apply to this court for an order lifting the stay [on the lawsuit] for purposes of considering the substantive aspects of the motion,” Gatewood said.

Jorgensen, in his motion, expressed concern about Fitial’s recent declaration of a state of emergency during the CNMI government shutdown.

He added, “Faced with the dilemma whereby many of these so-called CNMI ‘leaders’ are now pivotal as to the Fund’s affairs and exponentially escalating demise — amid a contrived CNMI crisis rooted in gubernatorial maneuvering, political gamesmanship, and, some allege, outright intergovernmental blackmail — neither the plaintiffs nor similarly situated retiree-beneficiaries should be left to rely on the words or assurances of ‘leadership,’ particularly where at the drop of a hat this ‘leadership’ might well reverse, abandon, or whimsically modify a so-called gubernatorial Fund ‘exemption’ here today, but gone tomorrow.”

Jorgensen is asking the court to direct Fitial, the Retirement Fund board and other defendants “to provide to plaintiffs and all Fund retirees and beneficiaries, in unrestrained, uninterrupted, undiluted, and continuing fashion, all Fund services, including but not limited to pension payments, manual benefits checks, automatic benefits payments, pension checks, Government Health and Life Insurance coverage, health and life insurance, health and life benefits, annuities, survivor benefits, and essential services including a fully staffed, operational, and functional Fund office/facility during normal working hours.”

If successful, the class action will result in the seizure of CNMI government assets like the Commonwealth Utilities Corp., the Commonwealth Ports Authority and the Commonwealth Health Center.

The U.S. court will also enforce the outstanding $231 million judgment against the CNMI government.

Exempted

Fitial on Saturday  included 11 positions in the Retirement Fund on the list of essential services.

Press Secretary Angel A. Demapan in an interview said the Retirement Fund office opened yesterday.

However, only selected services will be operating to accommodate the retirees and its other beneficiaries.

They are the member service manager, two benefits technicians, accounting supervisor, accountant, benefits analyst, benefits technician, technical financial analyst, systems administrator and legal counsel.

Fitial said he wants to ensure that the Fund continues to furnish services, including but not limited to pension payments, manual benefits checks, automatic benefits payments, pension checks, Government Health and Life Insurance coverage, and other essential services to its members during the crisis.

 

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