CNMI govt settles ambulance lawsuit for $50,000; other claimants seek proceeds

The CNMI government filed Tuesday in federal court a court action against attorney Braddock J. Huesman and his client, the owner of a private ambulance, over the government’s $50,000 settlement of their lawsuit.

The CNMI, through assistant attorney general Charles E. Brasington, filed a complaint in interpleader against Huesman, August Healthcare LLC, and First Hawaiian Bank.

Interpleader refers to a civil procedure that allows a plaintiff to initiate a lawsuit in order to compel two or more other parties to litigate a dispute.

Brasington asked the U.S. District Court for the NMI to require Huesman, August Healthcare, and First Hawaiian Bank to litigate among themselves their claims to the proceeds of the $50,000 settlement.

Brasington asked the court to determine and issue an order setting forth the proper recipients of the settlement proceeds.

Last Feb. 5, the CNMI government, on behalf of Department of Fire and Emergency Medical Services fire chief Thomas M. Manglona, reached settlement with August Healthcare LLC, that owns Saint Michael’s Medical Response.

August Healthcare Group filed the lawsuit in 2012. The company sued cousins Thomas and Joaquin C. Manglona, August Healthcare, and several others for allegedly conspiring to destroy the company’s business and help another then-newly formed ambulance company, Priority Care.

Joaquin Manglona is one of the members of Priority Care.

Brasington said a settlement agreement was executed on March 13, 2015, and the parties asked the court to dismiss the lawsuit.

Brasington disclosed that pursuant to the settlement agreement, the government agreed to pay a total of $50,000 in full settlement of all claims in the lawsuit.

Brasington said $10,000 of the settlement proceeds were designated as payable to Huesman as attorney’s fees.

He said the settlement deal requires all payments to be paid to Huesman’s law office.

First Hawaiian Bank has asserted rights to the settlement proceeds as a result of a security agreement executed by August Healthcare.

As a result, Brasington said, the CNMI faces claims by two or more adverse claimants who claim to be entitled to the settlement proceeds.

Brasington said concurrent with the filing of this interpleader, the CNMI has tendered the initial payment of $8,000 due on March 16, 2015, pursuant to the settlement agreement.

He said the government will pay all subsequent payments when as they come due to federal court.