Court orders release of wetland compensation

The Superior Court on Tuesday directed the Commonwealth Development Authority to proceed with the disbursement of nearly $160,000 in land compensation claim in favor of a wetland owner whose land was taken by the government for public purpose.

Associate Judge David Wiseman dismissed the lawsuit filed by Attorney General Pamela Brown against the Marianas Public Lands Authority and Rosario DLG. Kumagai. Brown filed the suit to prevent the drawdown of funds from the government’s land compensation fund, after the MPLA authorized the monies’ release to Kumagai.

But Wiseman rejected dismissal of Brown’s suit against another wetland owner, Victoria S. Nicholas, who has been claiming some $1.16 million from the government for the taking of her property.

Wiseman noted that Kumagai had earlier entered into a settlement agreement in another court case wherein the Commonwealth Health Center, represented by Brown’s office, had sued her over unpaid medical services.

The judge noted that the settlement agreement that ended the CHC suit recognized the land compensation due Kumagai, wherein the claimant agreed to pay the government some $79,704.09. In the settlement agreement, Brown agreed that the government would not hinder the disbursement of the remaining funds to Kumagai.

“The Attorney General signed a court-endorsed settlement agreement certifying that the underlying facts and law have been investigated,” Wiseman said.

“Since the settlement agreement was predicated on Kumagai’s MPLA compensation, the Attorney General’s certifying the CHC agreement after stating that the underlying facts and law had been investigated prevents the AG from claiming that Kumagai’s compensation is improper,” the judge added.

Regarding Nicholas’ request to dismiss Brown’s suit, the judge said that the AG made no certification that an investigation has been conducted on the propriety of the compensation claim.

“Unlike Kumagai, the only party certifying that payment to Nicholas was proper was defendant MPLA,” the judge said. “While Nicholas may be able to defeat [Brown’s] complaint…defendant Nicholas does not meet the burden necessary to constitute dismissal.”

Brown, through assistant attorney general James Livingstone, sued Kumagai and Nicholas, as well as the MPLA to prevent the drawdown of funds from the government’s land compensation fund. The MPLA has agreed to compensate Kumagai and Nicholas.

Livingstone said the MPLA has exhausted the land compensation fund and many claims for land taken for right-of-way purposes would not be compensated at all if the monies were released to Nicholas and Kumagai. Livingstone seeks judicial declaration that wetland properties that are not used for right-of-way purposes cannot be compensated using land compensation funds.

MPLA’s approval of Kumagai’s claim came about after a settlement was reached between her and the agency. Then Gov. Lorenzo I. DeLeon Guerrero had certified the taking of Kumagai’s property for the purpose of protecting wetlands and endangered species on Nov. 16, 1993.

The MPLA authorized the payment of some $159,408.19 to Kumagai on May 5, 2005, and forwarded the settlement agreement to Finance Secretary Fermin Atalig for concurrence.

Regarding Nicholas’ claim, the MPLA authorized the payment of over $1.16 million on April 28, a week after the governor certified the government’s taking of her property in 1993 for the purpose of protecting wetlands and endangered species. Nicholas’ attorneys explained that the MPLA’s authorization of payment to her was the result of a settlement agreement between the agency and their client on April 22.