Associate Judge Kenneth L. Govendo, in his order, said the court finds no reason for the delay.
The defendants who are represented by the Attorney General’s Office are the CNMI government, Gov. Benigno R. Fitial and Finance Secretary Eloy Inos.
Govendo said the consequence of an entry of a default judgment is that “the factual allegations of the complaint, except those relating to the amount of damages, will be taken as true.”
The Retirement Fund filed its complaint against the defendants on Aug. 2, 2006.
When asked to comment on the delay, Assistant Attorney General R. Anthony Welch told the court it was his fault and he “messed it up.”
Welch said “if the court needs to sanction anyone, it was him.”
Govendo said the lapse was inexcusable.
“This matter represents an issue of vital importance that will have deep reaching consequences for every family in the commonwealth,” Govendo said. “For the commonwealth to say it was unable to file an answer to a lawsuit worth over $91 million due to the ‘press of other business’ is both absurd and reprehensible.”
Welch stated both in court on Oct. 17, 2008 and in his motion to extend time to answer that he was too preoccupied with the Commonwealth Utilities Corp. and other responsibilities to address the present complaint.
But according to Govendo, “To accept the present excuse from an office that appears to be permanently under the ‘press of other business’ and to not declare a default against the commonwealth would be to set a precedent that the commonwealth is free to disregard the rules of civil procedure.”
He noted that the defendants’ have previously made repeated admissions of liability.
On Oct. 17, 2008, Welch repeated the admission several more times throughout the hearing. “The executive branch owes money to the [Retirement Fund],” he told the court. “We know that. We admit to that. The issue that is going to come before the court is how much.”
The Retirement Fund sued the CNMI government for failing to remit its employer contributions for three pay periods.
