DPL found liable to pay $1.8M

The Superior Court yesterday found the Department of Public Lands, as successor of the defunct Marianas Public Lands Authority, liable to pay $1.8 million in compensation to the heirs of Rita Rogolifoi over the government’s taking of two lands in As Mahetog in 1976 and 1992.

In a written order, Presiding Judge Robert C. Naraja ruled that the Rogolifoi heirs should be given a total of $1,842,286.02.

For the 1976 taking of land, Naraja determined that a prejudgment interest rate of 7.724 percent should be applied, for a final award amount of $101,017.78.

For the 1992 taking of property, the judge said a prejudgment interest rate of 6.991 percent should be applied, for a final award amount of $1,741,268.24.

In the same decision, Naraja ordered DPL to remit to the court over $500,000 in rental payments collected from respective lessees of the lands under the lease agreements with the former MPLA.

Naraja determined that as of March 31, 2008, MPLA collected $209,912.50 in rent under the original lease with the former Micronesian Telecommunication Corp. (now PTI).

He determined that as of Dec. 31, 2007, MPLA collected $195,348.36 in rent under the original lease with Saipan Ice Inc.

The judge also established that as of Dec. 31, 2007, MPLA obtained $121,395.53 in rent under the original lease with Commercial Trading of Saipan.

“This court, through the expert testimony of [financial adviser Daniel] Webb, has been shown that a reasonably prudent person with invested funds received in 1976 will have generated a return of 7.724 percent per year,” Naraja said.

Furthermore, he said, a reasonably prudent person could have invested funds received in 1992 and generated a return of 6.991 percent per year.

“Even in light of the significantly lower land values today, it is not a windfall to receive what a reasonably prudent person could have generated through moderately conservative investments if the Commonwealth would have made prompt payment for the land taking,” Naraja pointed out.

According to court records, in 2005 MPLA’s board of directors sued the Department of Lands and Natural Resources, the agency that administers the Division of Land Registration and Survey, and the heirs of Rita Rogolifoi. It also sued the then DLRS director.

The MPLA board accused the DLRS director of conducting arbitrary land surveys that benefited the heirs of Rogolifoi to public land.

The complaint alleged that a certificate of title in favor of Rogolifoi was issued in December 2004 and described the aggregate area of three lots as 33,927 square meters, but that in January 2005 the title was amended to increase the aggregate size to 44,943-sq.m.

But the heirs of Rogolifoi, through administrator Enrique K. Seman, filed a counter-claim against MPLA.

In March 2006, Seman even threatened he would block Middle Road in front of Saipan Ice that, according to him, belongs to them and was taken by the government for public use.

Seman claimed that over 1,000 square meters of their 4.4 hectares were used by the government for the road.

He said that for over 50 years now, his relatives have been fighting to get compensation for the taking of their property.