The high court remanded the case to the lower court for further proceedings.
Pitness Moses, who was represented by attorney Jane Mack of the Micronesian Legal Services Corp., owed Marianas Eye Institute over $300 for eye care services in 2006.
The Superior Court ruled in favor of Marianas Eye Clinic after it filed a small claims action against Moses who lost his job following the closure of the garment factory he was working for in 2003.
Since that time, Moses has been unemployed despite his efforts to find a new job at various businesses.
Moses, a citizen of the Federated States of Micronesia, is not eligible to receive public assistance, but his U.S. citizen children receive food stamps and a housing and utility allowance.
Moses has no other source of income or non-exempt assets, according to court documents.
Moses’s counsel argued that the job search requirement of the trial court ruling exceeding the scope of 7 CMC §§ 42053 and 4206, and that the correct reading of those sections only allows for the seizure of income and non-exempt assets that a debtor already possesses.
His counsel further argued that nothing in the statutes can be interpreted to allow the court to force a debtor to increase his assets or income through employment to pay a judgment debt.
Moses’ counsel also pointed out that the requirement violates the Thirteenth and Fourteenth Amendments to the United States Constitution — “there is neither a rational basis nor factual support for the order, and that the order never should have issued because he has no ability to pay.”
Marianas Eye Clinic, represented by attorney Michael A. White, said a requirement that a debtor look for work is not akin to slavery or indentured servitude.
But according to the Supreme Court: “The provision in the [trial court] order…that required Moses to utilize his best efforts to obtain employment is not permitted by 7 CMC §§ 4205-4206. Acceptable methods of payment do not encompass a job search requirement. Furthermore, an order in aid of judgment can only issue if the trial court first determines that the debtor has the ability to pay the judgment debt. In this case, the parties stipulated that Moses possesses no income or non-exempt assets to pay the judgment, and thus, the order never should have issued.”
In a footnote, the CNMI Supreme Court said: “Marianas Eye is entitled to have the trial court periodically examine Moses’s financial situation to determine if he obtains the ability to pay the judgment at a later date.”
MLSC, on its “Day in Court” blog, said “this small victory will provide enormous relief to many people who are currently in dire economic conditions, without work but owing debt.”
