FORMER Law Revision Commission Executive Director David C. Andersen has filed a lawsuit against Chief Justice Miguel S. Demapan over the alleged illegal diversion of the commission’s funds for Supreme Court operations.
Andersen sued Demapan for alleged breach of fiduciary duties, and violation of the Open Government Act.
The Variety tried to reach Demapan for comment on Friday, but his secretary said he was not available.
Andersen asked the Superior Court to issue an order requiring Demapan to repay the government the full amount of funds reprogrammed and expended.
Andersen wants to court to remove Demapan as LRC chairman and order him to pay statutory penalties under the Open Government Act.
Andersen said the defendant failed to hold the March and Oct. 2001 mandatory biannual LRC meetings as required under LRC by-laws.
He further alleged that Demapan blocked the meetings to prevent LRC members from learning about his intent to divert commission funds to the Supreme Court.
Andersen said that on Aug. 31, 2001, a court official informed him that the Supreme Court had overspent its fiscal year 2001 budget by $150,000 and would therefore reprogram LRC personnel funds.
Demapan caused $48,000 in personnel funds to be reprogrammed from LRC’s account into the Supreme Court account on Sept. 5, 2001, Andersen alleged.
The four other LRC members, he alleged, were neither consulted nor informed about the defendant’s reprogramming of funds.
Andersen said pursuant to LRC by-laws, on Sept. 19, 2001 he proposed an agenda for the Oct. 24 regular LRC meetings, by a memo addressed to all LRC members.
Andersen said pursuant to his fiduciary duty to the commission, the memo included allegations of Demapan’s diversion of LRC funds.
But the defendant, he said, canceled the Oct. 24 regular LRC meeting, ordered the notice removed from LRC’s Web site and placed him on immediate administrative leave as alleged punishment for exposing the diversion of funds.
Andersen said Demapan called a “special meeting” of LRC for Nov. 9 on short notice while he was off-island on administrative leave.
His allegations against Demapan were “conspicuously absent” from the revised agenda at the Nov. 9 special meeting, Andersen said.
LRC members insisted on an independent audit of defendant’s reprogramming of LRC funds, he said.
“Defendant breached his fiduciary duties of loyalty and candor to LRC by reprogramming LRC funds to the Supreme Court without consulting or informing the other commissioners,” he said.
The reprogramming, Andersen alleged, violated the law because Demapan failed to notify the legislature and failed to request a joint legislative resolution to approve the action.
“Defendant violated the Open Government Act by failing to hold regular biannual public meetings in March and Oct. of 2001 in accordance with the LRC by-laws,” Andersen added.
Last November, LRC members
voted to terminate Andersen as executive director.
LRC was established in 1983. It codifies CNMI laws and publishes decisions of the Supreme Court and Superior Court.
