Court orders Froilan to pay over $12M • Special Judge Benjamin J. F. Cruz says former governor abused authority

The Superior Court threw out a motion filed last year by former governor Froilan C. Tenorio to reconsider a June 1997 court ruling that held the ex-chief executive liable for damages in excess of $12 million for misappropriation of public funds.

Special Judge Benjamin J. F. Cruz has ordered Mr. Tenorio to pay the Commonwealth $12 million for breach of fiduciary duty.

Further, the former governor has been sanctioned by the court to pay a total of $56,679 in attorney’s fees and other costs to Jeanne H. Rayphand, the lawyer who filed in behalf of the CNMI taxpayers a civil action suit against Mr. Tenorio.

In a decision released Wednesday, the judge found no good cause to alter its previous ruling which the defendant argued was null and void and manifestly wrong.

Mr. Tenorio also asserted relief from the decision on grounds that he relied on advice from the Attorney General, that the ruling may set a dangerous precedent, and that the order was nonsensical.

But the court had determined that the defendant was indisputably reprogramming funds and making appropriations without existence of a budget, in the absence of the budget passage during the fiscal years 1993 and 1994, including the former governor’s first year in office.

According to the judgment, Mr. Tenorio undertook actions through which he breached his fiduciary duty by acting not solely for and in the best interest of the people of the Commonwealth.

The court found that many of the appropriations Mr. Tenorio made were ultimately for his, including but not limited to the new cars purchased for himself and his lt. governor, and the new furniture for his office.

The defendant also previously warned the court that should the suit against him flourish, a dangerous precedent may follow in that future taxpayers will be permitted to sue the governor over policy decisions.

“The defendant seems to be threatening the court, by intimating that he will take action to cause this case to remain in litigation for years to come, including but not limited to, suing legislators and students who have received scholarships. The defendant also attacks the court’s decision by indicating that it sets dangerous precedent…,” read the judgment.

The court added it is not concerned about future litigation, underscoring that the new decision, as the 1997 decision, is centered on the defendant’s breach of fiduciary duty and abuse of authority.

Mr. Tenorio’s motion for intervention which he filed over five years since the litigation was ensued was also denied by the court.

He has been ordered to settle the payment of attorney’s fees within thirty days from the date the judgment was issued.