NMC: Settlement Fund trustee keeps misinforming the court

The Northern Marianas College says Settlement Fund trustee Joyce C.H. Tang continues to misinform the federal court regarding NMC’s position on the issue of its contribution to the Fund.

In NMC’s response to Tang’s report, NMC counsel Mark A. Scoggins said the U.S. District Court for the NMI has been misinformed that NMC’s reason for not paying at the 30-percent rate is due to a letter from then-governor Benigno R. Fitial.

“This is not true,” Scoggins said.

Although the historical reasons for NMC’s contribution rate were discussed with Tang in September 2014, Scoggins said she has been informed on several occasions that NMC’s position is actually based on the plain language of the settlement agreement in Betty Johnson’s class action lawsuit.

In her report for fourth quarter fiscal year 2014 and first quarter fiscal year 2015, Tang disclosed, among other things, that they may file a court action against NMC, which is the only remaining autonomous agency that is not current and refuses to pay the Settlement Fund its outstanding balance of $71,749.43.

Tang said they will ask the court to issue an order requiring NMC to pay all employer contributions at the rate of 30 percent, together with interest and penalties on the unpaid portion.

Tang said that, on Sept. 10, 2014, Scoggins informed the Settlement Fund that the reason NMC was not paying its employer contributions at the 30-percent rate was because of a June 24, 2008, letter from Fitial to NMC.

Tang said NMC claimed that Fitial’s letter confirms the agreement of the government to pay the 10 percent portion of NMC’s employer contributions.

In NMC’s reply, Scoggins said Tang’s current statements about NMC’s position are untrue. He said NMC informed Tang of their position that the plain language of a section of the settlement agreement that states that “CNMI autonomous agencies shall make supplemental payments to the Settlement Fund in the amount of the employer contributions for these Settlement Class members at the same contribution rate they were paying as of June 26, 2013.”

Scoggins said the language is unambiguous.

He said NMC was paying at the contribution rate of 20 percent on June 26, 2013, and NMC is paying “the same contribution rate NMC was paying as of June 26, 2013.”

As for Tang’s hint to take court action, Scoggins said NMC will await the trustee’s motion and will, of course, more fully inform the court of its own position.