CUC asks court anew to junk govt’s suit

The Commonwealth Utilities Corp. has renewed its request for the Superior Court to dismiss the complaint filed against it by the CNMI government on technical grounds.

Attorney Robert T. Torres, on behalf of CUC, said the government’s complaint should be dismissed because the suing agencies not only lacked the standing to file the complaint, but were also barred from challenging CUC’s rate structure.

The plaintiffs—Finance Secretary Fermin M. Atalig, the Department of Finance, and the Office of the Governor—filed the complaint in April 2004 in an effort to prevent CUC from cutting off service to the government.

The agencies also questioned CUC’s power to establish different rates for government and commercial and residential users.

But according to Torres, the plaintiffs do not have the authority to protest charges on behalf of the 692 government agencies or entities that hold CUC accounts.

“Neither the Constitution nor CNMI statutory law authorize DOF to undertake legal action on behalf of the various entities for which it acts as a purser—including, but not limited to, the Legislative or Judicial branches of the CNMI government. Since DOF is also not denominated as an account holder for any CUC accounts other than DOF offices, it is neither empowered nor authorized to undertake this action on behalf of anyone other than itself,” Torres said.

For the same reasons, he added, the Governor’s Office lacks standing to sue on behalf of all government agencies.

Torres also noted that under the Constitution, the Attorney General’s Office was the designated entity for representing the CNMI in all legal matters and prosecuting violations of Commonwealth law.

Further, CUC’s attorney maintained that DOF’s argument against CUC’s rate structure lacked merit.

Torres pointed out that CUC was authorized by statute to establish different rates for the three classes of customers. He added that the higher rates for government accounts were established at the request of and with the approval of the Executive and Legislative branches of government.

“The government proposed the higher rate, consented to the higher rate, insisted on the higher rate, and lived under the higher rate for ten years before filing the instant lawsuit challenging the rate as unlawful,” Torres said.

He further argued that CUC—and not the court—was the proper forum if the government wanted the same rate for all Commonwealth residents.