The CNMI government has entered a confidential settlement agreement with the Commonwealth Utilities Corp. to resolve CUC\u2019s lawsuit against the government over the non-payment of its $1.2 million debt.<\/p>\n
With the settlement, Superior Court Associate Judge Joseph N. Camacho dismissed CUC\u2019s lawsuit yesterday with prejudice. That means CUC can no longer re-file the case.<\/p>\n
The settlement resolves the lawsuit effective Jan. 1, 2017, according to assistant attorney general Charles Brasington, counsel for the government, and CUC counsel Michael A. White. The case was dropped.<\/p>\n
Both parties held settlement discussions after Camacho issued an order last August, stating that the Office of the Attorney General does not understand the difference between the concepts of \u201ccreature of the state\u201d and \u201carm of the state.\u201d<\/p>\n
Camacho discussed the two doctrines in his order denying the government\u2019s motion for summary judgment and an order denying the Commonwealth\u2019s motion for reconsideration in connection with CUC\u2019s lawsuit. <\/p>\n
CUC filed the lawsuit in December 2013, alleging that the government owed the utility company $1.24 million, together with pre-judgment interest. CUC alleged that the government breached its utility contract. <\/p>\n
The government moved to dismiss the complaint. At the time, the government argued that CUC, a public utility corporation, lacked capacity to sue the state.<\/p>\n
In his order on Sept. 3, 2014, Camacho denied the government\u2019s motion, noting that the Commonwealth Code explicitly and unambiguously imposed liability on government utility consumers for breach of contract claims.<\/p>\n
Camacho also noted that upon review of all state of emergency executive orders issued by the governor, none of the executive orders suspended CUC\u2019s statutory ability to bill government utility consumers.<\/p>\n
The government petitioned the NMI Supreme Court for a writ of mandamus seeking to overturn the court\u2019s order.<\/p>\n
The NMI Supreme Court denied the government\u2019s petition.<\/p>\n
The high court upheld Camacho\u2019s ruling that CUC can sue the government.<\/p>\n","protected":false},"excerpt":{"rendered":"
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