Federal judge orders Torres to appear at status conference in Johnson lawsuit

U.S. District Court for the NMI designated Judge Joaquin V.E. Manibusan Jr. has ordered Gov. Ralph DLG Torres to attend a status hearing in the Betty Johnson’s class action against the CNMI government and the NMI Retirement Fund.

As this developed, former lawmaker Mariano Taitano is questioning Joyce C. H. Tang’s alleged failure to prosecute the Fund’s lawsuit against Gerhard “Gary” Sword and his company, Express Electronics. He asked the federal court to replace Tang with someone from Saipan. Tang is the Settlement Fund trustee.

If Torres can’t make it, Lt. Gov. Victor Borja Hocog should be present at the hearing, scheduled for Sept. 27, 2017.

Manibusan also ordered Finance Secretary Larrisa Larson to attend.

The federal court recently ordered Tang and other parties in Johnson’s lawsuit to file a joint report whether all issues in Johnson’s class action have been resolved.

The court also asked for a joint report whether the case can now be closed.

The parties were given no later than Sept. 15 to file the report.

In 2013, U.S. District Court for the NMI designated Judge Frances Tydingco-Gatewood gave final approval to the global settlement agreement in Johnson’s class action against the CNMI government and the NMI Retirement Fund.

Under the deal, the CNMI government will make annual payments that will fund at least 75 percent of class members’ benefits.

With the final approval, all Retirement Fund assets were transferred and assigned as assets of the Settlement Fund. The Settlement Fund was then administered by Tang, who was appointed to the post by the court.

Meanwhile, in a letter filed in court last Tuesday, Taitano, a former lawmaker and now a retiree, expressed disappointment over the alleged lack of efforts by Tang or trustee ad litem Joseph Razzano to prosecute the case against Sword and Express Electronics.

Taitano said that, on April 27, 2016, Superior Court clerk of court Patrick V. Diaz issued an order of dismissal in the Fund’s lawsuit against Sword and Express Electronics.

In the order, clerk of court Patrick V. Diaz said 30 days have passed since notice of pending dismissal was sent to the parties in this case, and no timely opposition was filed.

Taitano said that Tang and Razzano both failed to fulfill their responsibilities as trustee ad litems in pursuing the case, which the NMI Retirement Fund loss nearly $400,000 by Express Electronics’ inability to perform and deliver ton a contract regarding the program’s computer software system.

As a retiree, Taitano said, it is extremely disappointing and disheartening to repeatedly read in the newspapers about the fee being paid to Tang.

Taitano said if Tang had pursued the case against Sword, perhaps he may be content with her services regardless if she prevails or not.

He said the Settlement Fund is accounting and administrative in nature, which can be easily handled by Lillian Pangelinan and her staff rather than a highly paid lawyer from Guam whose airline and lodging are factored into her fees.

Taitano asked the court to replace Tang with someone from Saipan.

It was Taitano and two others who sued the Fund’s board, the Fund’s former investment consultant, Merrill Lynch, and others in Superior Court, alleging various causes of action for damages relating to the decline in the Fund’s assets.

The case was then submitted to arbitration. Taitano and co-plaintiffs subsequently transferred their claims against Merrill Lynch to the Settlement Fund. Merrill Lynch subsequently settled the case for $7.4 million. The Settlement Fund received $5.12 million in net proceeds from the $7.4 million.