Naraja issued an eight-page order granting prejudgment interest rates for government taking of lots to the heirs of Rita Rogolifoi, represented by Dolores Saralu and Jesus Deleon Guerroro Takai, director of Division of Land Registration and Survey, Department of Lands and Resources and other defendants.
After considering all pleadings, arguments and records, the court ordered the Rogolifoi heirs to be awarded a total of $2,368,942.41 for just compensation and rents collected by DPL’s predecessor, the Marianas Public Lands Authority.
The just compensation award includes a final amount of $101,017.78 for the March 24, 1976 taking at a prejudgment interest rate of 7.724 percent. For the Jan. 16, 1992 taking, the final award amount reached $1,741,268.24 at a prejudgment interest rate of 6.991 percent.
The award from the rents collected from MPLA/DPL is broken down as follows: $209,912.50 representing rent collected under the original lease with the Micronesian Telecommunication Corp. — now PTI — as of March 31, 2008; $195,348.36 representing rent collected under the original lease with Saipan Ice Inc. as of Dec. 31, 2007; and $121,395.53 representing rent collected under the original lease with Commercial Trading of Saipan as of Dec. 31, 2007.
Naraja ordered DPL to account for and remit to the court all rental payments collected from the respective lessees under the lease agreements in this case, including any amount to date as of the respective dates mentioned when the last rental payment was collected and agreed to in this case.
On Aug. 8, 2008, a hearing was conducted where Assistant Attorney General R. Anthony Welch appeared on behalf of DPL. Attorney Brien Sers Nicholas appeared on behalf of Rita Rogolifoi heirs.
During the discussion, both parties presented testimony to show the proper prejudgment interest rate. DPL presented Mitchell Aaron, a certified real estate appraiser who testified that 123 of 129 citizens in the CNMI with land taken by the government accepted a settlement with an interest rate of 3.5 percent compounded. Aaron said the property values in the CNMI have declined since 1992 at about 8 percent per year or 89 percent of the 1992 value.
Daniel Webb, a financial adviser testified on behalf of Rogolifoi heirs who calculated the value of two lump sum payments by applying two separate interest rates for each payment amount.
The court, while not in total agreement with the Rogolifoi rationale, agree that the Supreme Court statement regarding the final award’s relationship to the current property value does not apply to this instance.
The court stated that if it were to apply the 3.5 percent interest rate suggested by DPL, it would be injustice to the Rogolifao heirs.
The court said although the land values have fallen, the Rogolifoi heirs would have used the money for other investments if MPLA/DPL paid them promptly.
