Substantial legal fees unpaid by Atalig

Rota Mayor Efraim M. Atalig currently owes a substantial amount in unpaid legal fees to O’Connor Berman Horey & Banes law firm, which is representing him in a criminal case pending in federal and local courts, according to his counsel, David G. Banes.

Banes, a member of the O’Connor law firm, yesterday asked permission from the U.S. District Court for the NMI for the firm to withdraw as counsel for Atalig in the event that the court denies the mayor’s motion to appoint a counsel for him.

Banes said the ABA Model Rules of Professional Conduct permits an attorney to withdraw representation if “the client fails substantially to fulfill an obligation to the lawyer regarding the lawyer’s services and has been given reasonable warning that the lawyer will withdraw unless the obligation is fulfilled.”

He said Atalig entered into a written retainer agreement with their law firm under an hourly rate arrangement for the defense in this case.

Banes said the mayor also entered a separate retainer agreement with their law firm under the same hourly rate arrangement for the defense in his criminal case filed before the Superior Court.

The lawyer said pursuant to the agreements, Atalig deposited a retainer amount from which legal fees were to be deducted.

He said when legal fees exceed the retainers, the written agreements require Atalig to pay the deficiency.

Banes said when the retainer agreements were signed, the federal court case involved only one count of wire fraud concerning a single trip from Rota to Guam.

However, Banes said, the U.S. government filed a superseding indictment including additional counts related to four different trips, making this case much more complicated and time consuming.

In addition, he said, the prosecution has produced several thousands of pages of discovery materials so far, and has indicated more might be coming.

As a result, Banes said, Atalig has incurred substantial legal fees and expenses.

Banes said so far, the retainers Atalig paid to their law firm have been depleted and the mayor currently owes substantial legal fees, the bulk of which was for the defense in the federal case.

The lawyer said Atalig was notified of the depletion of the retainers last October, but he has not made any payment to their law firm.

Banes said the mayor has indicated that he currently does not have the funds to pay the legal fees owed, let alone fees that will be incurred as the case moves forward.

Banes said their law firm has warned Atalig that it would withdraw from representing him if the legal fees are not paid when due.

He said they informed Atalig that if withdrawal is approved by the court, he will be left to find new counsel unless he cures the deficiency in unpaid legal fees.

Last week, U.S. District Court for the NMI Chief Judge Ramona V. Manglona granted Atalig’s unopposed request to file under seal his financial affidavit and declaration in support of his motion for the court to appoint counsel to represent him in his criminal case.

In his request to seal, Atalig, through counsel Banes, said he plans to file a motion to appoint counsel under the Criminal Justice Act program and to include a financial affidavit and/or a declaration that discusses confidential personal financial information.

Last December, Atalig, through counsel, informed the court that he may be eligible for a court-appointed counsel.

Last September, Manglona determined that the mayor is not eligible for a court-appointed counsel. This prompted Atalig to hire the O’Connor law firm to represent him.

In federal court, Atalig and his girlfriend, Evelyn M. Atalig, are indicted with five corruption charges for arranging CNMI government-funded trips to California, Republic of Palau, Guam, and Saipan under fraudulent pretenses.

In the Superior Court case, the Office of the Attorney General filed criminal charges against Atalig and seven other Rota municipal officials in connection with the Guam political rally.

The Ataligs pleaded not guilty of all charges.

Atalig was re-elected as Rota mayor during the last Nov. 13 election.