Motion to postpone $20K payment to Pellegrino nixed

Superior Court Associate Judge David A. Wiseman has denied the Department of Lands and Natural Resources’ motion for a temporary stay of a court order that required DLNR to pay $20,000 on or before April 1, 2009 to businessman Anthony Pellegrino and his Marine Revitalization Corp.

Wiseman pointed out that his third order—the subject of DLNR’s motion for temporary stay—was a continuation of mandates that have been in place for more than four years.

“In view of [DLNR’s] continuing chutzpah, manifested by the history of this case, it appears a reminder of the court’s position in this matter is necessary,” said the judge in his order issued Friday.

In his third order, Wiseman stated that in the event the order is not complied with, Pellegrino and MRC are authorized to seek further relief, including an order garnishing federal funds, appropriating portions of DLNR’s budget, and obtaining a finding of contempt from the court.

Pellegrino established MRC to build the Outer Cove Marina in the mid-’90s. The goal was to turn it over to the government. Arbitrators concluded that the marina project was a viable venture at that time because Saipan has limited mooring space at the Smiling Cove.

A dispute between MRC and the government arose in 2001 after the government not only failed to bar commercial vessels from renting slip space at Smiling Cove, but also actively solicited commercial lessees.

DLNR agreed in 2005 to a judgment of the court ordering it to pay more than $5 million to MRC or Pellegrino. DLNR, however, did not comply with the order, resulting in the court’s three judgments, including the Feb. 24, 2009 order.

In the third order, Wiseman ordered DLNR to pay its $5.65 million debt plus interest to Pellegrino and MRC. It included, among other things, a mandate that $20,000 be paid to MRC on or before April 1, 2009.

Wiseman warned that he will not hesitate to promptly address DLNR’s future noncompliance.

Last April 1, DLNR filed a motion for a temporary stay of the $20,000 payment pending a hearing of motion to stay the third order. DLNR’s motion, filed on March 26, 2009, is set for a hearing on April 9, 2009.

In denying the motion Friday, Wiseman said that, although DLNR filed a timely motion to stay on the major portions of the third order, which is set for hearing on April 9, the motion for temporary stay was not filed until the afternoon on the day that the $20,000 payment was due.

“Astonishingly, DLNR waited until April 1, the due date of the payment, to make their request,” Wiseman said.

Wiseman said the appropriate action would have been to file a stay after the first order was issued, or after the second order was issued, which mandated the same action that DLNR is not attempting to postpone.

“Instead, DLNR blatantly ignored the first two orders and now, only after another deadline has passed, wishes to further postpone the mandates of the court,” he noted.

Last February, Michael Dotts, counsel for Pellegrino and MRC, told Saipan Tribune that in interest alone, the CNMI government is liable to pay Pellegrino and MRC a total of $2.1 million.

Dotts said the court’s $5.65 million judgment that was issued in 2005 has been earning a $540,000 a year in interest, for a total of over $7 million.

“You can think of it is like one government employee per month can’t be hired because of this judgment,” Dotts said.