Woodruff’s $185K OK’d; Jorgensen’s $800K is placed under advisement

U.S. District Court for the NMI designated judge Frances Tydingco-Gatewood approved yesterday the $185,000 in attorney’s fees and costs for Betty Johnson’s local counsel, Stephen Woodruff, and said she will consider the $800,000 in attorney’s fees and costs for Johnson’s original counsel, Bruce Lee Jorgensen.

The CNMI government has agreed to pay $185,000 to Woodruff and $800,000 to Jorgensen for their representation in Johnson’s class action. The separate settlement agreements, however, are subject to court approval.

Tydingco-Gatewood also stated that she will order CNMI autonomous agencies to submit their contributions to the Settlement Fund on time or an order to show cause will be issued against them for being delinquent.

In Settlement Fund trustee Joyce CH. Tang’s status report, Tang disclosed, among other things, that as of the pay period ending Jan. 25, 2014, there is an outstanding due from the autonomous agencies in the total amount of $172,402.

The three top delinquent autonomous agencies are the Public School System, the Northern Marianas College, and the Commonwealth Health Corp.

Gov. Eloy S. Inos attended the hearing that lasted almost five yours. Tydingco-Gatewood ordered the governor to appear at the hearing as the court believes his attendance and participation is essential at the proceedings.

In his brief statement to the court, Inos said the Settlement Fund has been in transition from the pre-settlement to the first quarter period.

Inos said there were some problems and that he understands that the CNMI government and the Fund trustee have been able to resolve the matter.

The governor said he looks forward to the second status report of the Settlement Fund and that he is hoping it will be better.

On Woodruff’s $185,000 fees, Tydingco-Gatewood said the CNMI government’s proposed settlement with Woodruff has no objection. She also noted that Hawaii chief bankruptcy judge Robert Faris, who presided over the settlement agreement, recommended its approval.

“The court will approve the fees,” Tydingco-Gatewood said.

The judge gave Woodruff and the CNMI government until March 7, 2014, to submit the final draft of the settlement agreement.

Under the payment schedule, the government will pay the amount to Woodruff on May 2, 2014.

Woodruff said it’s a good settlement, although its less than half of Johnson’s counsel Bronster Hoshibata law firm’s recommendation of $400,000.

With respect to Jorgensen’s $800,000 proposed settlement fees, Tydingco-Gatewood said she is placing it under advisement for two reasons.

First, Tydingco-Gatewood said she agrees with Johnson’s counsel, Robert Hatch, that the court should see how the settlement agreement with Jorgensen is written. The judge said transparency is important for the benefit of the class and the CNMI government and to persons who donated to Jorgensen.

Second, Tydingco-Gatewood said, she wants to figure out what the court will do with respect to Johnson’s other counsel, Timothy Lord’s petition for attorney’s fees and costs.

The judge ordered the government and Jorgensen to submit the final draft of the settlement agreement on or before March 14, 2014.

On Lord’s petition, Jorgensen said he believes that the lawyer’s contribution in the case was only between 1 percent to 5 percent.

Lord had a hard time answering Tydingco-Gatewood’s question of how much he contributed in assisting Jorgensen in the case but later said he deserves to be paid $400,000.

Lord said he and Jorgensen had no written or oral agreement with respect to attorney’s fees.

Assistant attorney general Teresita Sablan asked the court to deny Lord’s petition in its entirety. Sablan said there’s no legal value to Lord’s work, and no benefit to the class and the outcome of the caser.

Jorgensen’s initial request was at least $18.6 million, while Woodruff was $2.9 million. Lord’s initial demand was either $3.6 million or $5.9 million.

Bronster Hoshibata is demanding $17.5 million, but the court placed the petition under advisement.