The trial promises fireworks above the expected in a high-profile collection case because KALGov attorney Rosalie Konou, who is an assistant attorney general for the government, and private attorney David Strauss, who represents the retirement agency, have a history of caustic legal relations.
The Marshall Islands Social Security Administration lawsuit was originally filed in 2002, and Strauss said that as of September, KALGov owes MISSA more than $4.5 million.
At a status conference last Friday before Judge James Plasman, Konou sought to delay the trial, but Plasman said there was no reason for further delays and ordered the trial to proceed as scheduled on Tuesday.
Konou contends that MISSA and the court action is preventing the Cabinet and relevant government ministries from exercising their authority over local governments, and also tossed numerous barbs at Strauss in her responses to Strauss’ various legal motions filed for MISSA.
She said KALGov has had found it “very hard” to negotiate with MISSA’s administration and board because of Strauss’ involvement, blaming the lack of negotiation that Strauss has allegedly made difficult as the reason MISSA is charging 100 percent penalties.
But Strauss responded that the court isn’t preventing the Cabinet or the Ministry of Internal Affairs from performing their legal duty because the “Cabinet has had more than 10 years to suspend the operations of KALGov and ensure KALGov’s contributions are paid to MISSA but has refused to do so.”
Konou asked Judge Plasman to dismiss the MISSA claim, and to award no legal fees. She added that if Plasman rules in favor of MISSA, it “will benefit (MISSA’s) lawyer.” But Social Security officials said Strauss is on a flat retainer not a contingent fee basis as is common in collection cases.
Strauss said in his brief to the court last week that KALGov has not paid retirement or health fund taxes for 33 quarters. As a result of non-payment for more than eight years, KALGov owes MISSA $2.8 million in contributions and interest, and another $1.7 million in penalties for a total of over $4,550,000.
After reviewing Konou’s motions and responses, Plasman said the trial will have a narrow focus to decide KALGov’s liability and the amount, if any, it owes to MISSA. He said Konou raised issues relating to enforcement of judgment that will not be addressed during the trial, but will be considered afterward.
“There is no reason to delay trial in a matter first filed eight years ago,” Plasman ruled. “The trial date was established in June of this year to take place beginning on October 12 at the Majuro Courthouse. There is no surprise and no reason to continue it further.”
