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Judge Manglona recuses self from Fund’s bankruptcy case
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Posted on Apr 18 2012
U.S. District Court for the NMI Chief Judge Ramona V. Manglona recused herself yesterday from presiding over the NMI Retirement Fund’s Chapter 11 bankruptcy case.
As this developed, the Fund, through its counsel Braddock J. Huesman and Boston law firm Brown Rudnick, has asked the court to expedite a hearing on its motions.
In a one-page order, Manglona said she must recuse herself from the case based on “spousal interest in the Northern Mariana Islands Retirement Fund.”
Judge Manglona’s husband, CNMI Supreme Court associate justice John A. Manglona, is a member of the Fund.
Manglona directed the court’s clerk to refer the case to Chief Judge Alex Kozinski of the U.S. Court of Appeals for the Ninth Circuit for re-assignment to another judge.
In the Fund’s emergency motion for an expedited hearing, Huesman said there is a need to continue making benefit payments to Fund beneficiaries while the Chapter 11 proceedings is ongoing. Huesman also cited the need to stay ongoing and potential lawsuits to give the Fund relief to re-organize.
Huesman said no request for the appointment of a trustee or examiner has been made in this case and, as of yesterday, no official committees have been appointed or designed.
The lawyer said the Fund’s beneficiaries rely on their pensions for their survival and well-being, to meet their basic food, clothing, shelter, and health care needs.
Huesman said the Fund seeks entry of an order allowing it to pay, for a period of two months from Tuesday, 100 percent of the full amount of benefits owed to beneficiaries.
The lawyer said since the motions that the Fund filed on Tuesday will benefit the Fund’s estate and, by extension, the estate’s creditors, no party will be unfairly prejudiced by an expedited hearing.
