CNMI Supreme Court Erred the NINTH Circuit Court of Ninth Circuit’S Opinion

Micronesia’s Leading Newspaper Since 1972 Vo·, 22 -115 Saipan. ÌVIP;96950;'; " ' Vici rianaS: Vai M onday ■ August 23, 1 9 9 3 Serving CNM! for 20 Years, v Ninth Circuit Court opinion CNMI Supreme Court erred THE NINTH Circuit Court of Ninth Circuit’s opinion. On Oct. 22, 1980 Diana pur trust” ing trust doctrine is to protect per Appeals has ruled that the CNMI Diana and her husband Frank chased the property from the Edward C. King, chief justice sons who are the rightful owners of Supreme Court erred in using the and James and Barbara Grizzard Mafnas family for $20,000. In of the Supreme Court of the Fed land even though they do not have resulting trust doctrine in decid entered into a partnership on Oct. 1982,1983 and 1984 she bought erated States of Micronesia who legal title. Even if Ferreira and her. ing a land claim under Article 12 21,1980 to buy and subdivide for two adJoining parcels from sit in the CNMI court as special partners did intend to create a re- of the CNMI Constitution. resale or lease a parcel of land in Mafnas for about $80,000 fur judge, issued a dissenting opin sulting trust in favor of partners not “The Commonwealth cannot San Roque. The agreement pro nished by the Grizzards. ion. Hesaid that although the part of CNMI descent their actions constitutionally deprive a person vided that the Grizzards would The Commonwealth Trial nership agreement violated Ar would not have created a resulting of a property interest through the lend $41,000 to the partnership Court voided the sale, concluding ticle 12 by giving persons not of trust because the transaction would expedient of an untenable judi for the purchase of the property. that although Diana held title to Northern Marianas descent im have an illegal purpose - avoidance cial interpretation of local, law Frank was to contribute $9,000 to the properties, her partners ,who permissible interests on the prop of the land alienationrestrictions of that denies that a property interest cover surveying, subdividing, le are not of Northern Marianas de erty, the court’s application of the Article 12, the court said. ever existed," the Ninth Circuit gal and accounting costs. Diana scent, “deemed” themselves to be resulting trust doctrine was im According to the federal court, Court said in an opinion dated was to buy the property and lease owners of the land and exercised proper and the sale from Mafnas the CNMI Supreme Court used Aug. 19. it to the partnership for 40 years. “control” over it. to Diana was valid. its power to create a resulting The federal court vacated the The first $41,000 in partner On appeal, majority 'of the “We agree with Judge King that trust in favor of Ferreira’s part local Supreme Court’s decision ship income, plus interest, was to CNMI Supreme Court concluded the CNMI Supreme Court’s ap- ners and then use the existence of and remanded the case between go to the Grizzards to repay their that because the Grizzards sup plicationof the resulting trust theory the resulting trust as a basis for Diana C. Ferreira against the loan. Further profits were to be plied the money, Diana held title was untenable,” the Ninth Circuit voiding the sale and giving the Mafnas-Boija group for further divided equally among the part to the property as trustee for the Court said. land back to the Mafnas-Borja proceedings consistent with the ners. Grizzards under a “resulting It said the purpose of the result clan. Johnston conditions to hurt Rota, Tinian ALTHOUGH the conditions laid out by Senator J. Bennet Johnston in his bill to revivethe$120 million infrastructuregrantfor the CNMI no are workable, they will affect the less developed economies of Rota № and Tinian, acting Governor BenJamin T. Manglona said Friday. “We still believe it will be a lot better for us not to have a cap on alien labor, but if Congress presses that on us, all we ask for is some flexibility to spare the islands of Rota and Tinian,” Manglona said in an interview. The limit on the number of alien workers in the Commonwealth was one of the conditions laid out by Johnston in his bill which also seeks to raise the local labor content of the islands' garments industry. The measure followed the reJection by Congress of the third multi jnize the contribution o f the fate District CommisJ of the resolution to year financial assistance for the CNMI, which commits the federal son Michael, Muna's government tofimd $ 120 million worth of infrastructure in the island widow Milagrowith granddaughter, Lt. Gov. Benjamin T. Manglona, Speaker Thomas P. Villagomez and chain, to be matched by the same amount by the local government. Senate President Juan S. Demapan. The package was dropped from the federal reconciliation budget J due to concerns cm the rising number of alien workers in the CNMI, labor abuses, low minimum wage and a generous taxation system. The Johnston bill seeks approval of the funding package condi Hofschneider chides Guerrero tioned on the following: the CNMI must freeze immigration at the 1992 level; increase the percentage of resident labor in the garments industry; raise the same amount of net revenues as if the federal for delay in probe of shooting mirror tax is applied and amend the minimum wage to reflea the REPRESENTATIVE Heinz S. referral trip to San Diego where he ters of Tones’ house. same Job category exemptions and the same level of deductions for Hofschneider chided the Guerrero accompanied two members of his Another 30 minutes afterwards, housing and other benefits contained under the Fair Labor Standards admimstration Thursday fonts lack immediate family fo treatment, Hofschneider’s frontporch was hit Act ofinterestinsolvingthe 11-month- Hofschneider was interviewed The governa issued statement _ According to Manglona, such conditions may be workable, but old shooting incident at the houses about his recent removal from the condemning the shooting and or there is concern on whether the economies of Rota and Tinian can of three lawmakers. list of the Republican Party’s can dered an immediate investigation. withstand such conditions. “I have substantive information didates f a Precinct 3. No suspects have been arrested “There should be some room for flexibility here, say, on the cap on on the perpetrators of the dastardly Hofschneider and Representa almost a year after the shooting. workers. This could n a be done without seriously hurting current crime,” he said. “But the lack of tives Francisco DLG. Camacho and The House of Representatives efforts to develop the two islands," he said. desire on the part of the govern Stanley T. Tores were awakened has asked the Federal Bureau of Aside from need to protect Tinian and Rota’s fragile economies, ment to come up with a conclusive by gunfire between 3 aJn. and 4 Investigation through a resolution Manglona also expressed concern about the proposed restriction on repot on the incident is leadingme am on Sept. 26,1992, a day after to take over the investigation from the garment factoriesin maintaining a higher local labor percentage. to believe we’re headed towards a Camacho proposed impeachment local police. He said this process must be done gradually ánd na drastic as this cover-up." proceedings against governor During yesterday’s interview, could also impact the amount of revenues being collected by “The people in power are very Lorenzo I. Guerrero. Hofschneider said he received in- government. complacent and in my view they Automatic pistols of similar cali formation on the case but decline to “Overall, I am very grateful with the gesture of Senator Johnston are very close to have desired them ber were first fired at Camacho’s give details. in sponsoring this bill as this represents a chance for the CNMI to selves the shooting has occurred. place in San Roque, shattering the Guerrero is off-island. DPS Di prove itself worthy of future help,” Manglona said. “But we would In no time everything will be ex glass doors of the family-owned rector Gregorio Camacho and have to review its provisions very carefully so that we can air posed,” Hofschneider said in an grocery store. Deputy Directa Frank Camacho whatever concerns we mav have on its effect on the economy." interview. Abort 30 minutes later, bullets could na be reached for comment. (he Back from a two-week medical pierced the closed aluminum shut (RHA) ^MARIANAS VARIETY NEWS AND VIEWS-MONDAY- AUGUST 23,1993 Response to article Asian developers on New York Times {The following letter was sent to, and published by The New York Time s. Acopy was sent by theauthor t o t heVariety, abofor publication; bypassing Saipan Ed) HUNDREDS of resort hotels are being nese investment is certainly’ happening very emotional issue for m any people in Dear Editor: built rightnow across Asia and the South in Southeast Asia,” Hartwith says, add developing - particularly on islands - Asa citizen of the United States and a resident of Saipan, Common Pacific despite the Japanese recession, ing that the capital flowing from so- where land gets passed down from fam wealth of the Northern Mariana Islands, I would like to respond to your but Saipan is not benefiting largely be called "overseas Chinese” investors, is ily to family, so everybody is assured of front page article of Sunday, July 18 entitled “Saipan Sweatshops Are cause of the Article 12 issue, according more than that from US and Japan pul a livelihood. And that hasn’t been a No American Dream” and other related articles on page 10.

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