Kaipat estate to get $4.41M

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Posted on Apr 13 2005
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The Marianas Public Lands Authority has settled the Kaipat estate’s land compensation claim for $4.41 million, which is about 43 times greater than the authority’s original offer of over $102,000.

However, the settlement amount is $350,000 less than another offer that MPLA made earlier this year.

The MPLA board of directors approved the settlement agreement last Monday, following negotiations between MPLA management and the Kaipat Estate, administered by Luis K. Pelisamen.

Records show that the land compensation involves the government’s taking of land registered in the name of Rita Kaipat, which measures approximately 6,000-sqm and now forms part of the Chalan Pale Arnold or Middle Road.

Attorney Timothy Bellas, counsel for the Kaipat Estate, said the family never received compensation for the land.

MPLA initially offered $102,242.19 to settle the estate’s claim, but the offer was rejected. Negotiations between the administrator and the MPLA began with the court’s authorization in January 2004.

Earlier this year, MPLA came up with a settlement offer of $4,761,955.38, based on the land’s appraised value in 1992.

Pursuant to the amended land compensation law, the time of land taking by the government is determined based on when the governor certifies the property for public use.

The governor’s certification came out in March 1992, although the government actually took the land for public use long before the governor issued the certification.

Superior Court judge Juan T. Lizama refused to ratify the $4.76 million settlement last February, noting the controversy that has plagued other land compensation claims, particularly that of the Malite estate.

“The court has concluded that settlement agreements between an estate and its debtors should generally be private contracts and do not need the approval of the court and indeed do not warrant it,” the judge had said.

“That said, there has been as yet no challenge to the propriety of the settlement. So, if the relevant parties believe the matter settled, then the court suggests that the funds described be transferred to the estate for disposition in the ordinary course,” he had added.

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