Saipan Secretarial/Employment Services, Inc. v. Commonwealth

3 N. Mar. I. Commw. 168
CourtDistrict Court, Northern Mariana Islands
DecidedOctober 13, 1987
DocketDCA NO 86-9023; CIVIL ACTION NO. 85-105
StatusPublished

This text of 3 N. Mar. I. Commw. 168 (Saipan Secretarial/Employment Services, Inc. v. Commonwealth) is published on Counsel Stack Legal Research, covering District Court, Northern Mariana Islands primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Saipan Secretarial/Employment Services, Inc. v. Commonwealth, 3 N. Mar. I. Commw. 168 (nmid 1987).

Opinion

OPINION

LAURETA, District Judge:

Plaintiff-appellant Saipan Secretarial/Employment Services, Inc., (hereinafter Saipan Secretarial Services) sued the Government of the Commonwealth of the Northern - Mariana Islands and the Attorney General, in both his official and individual capacity, for breach of contract. The suit also sought relief under 42 U.S.C. §1983 for alleged constitutional violations. The case was dismissed by the Commonwealth Trial Court on the Government's motion for summary judgment and, in a subsequent order, the Government was awarded attorney's fees under 42 U.S.C. §1988. Plaintiff appeals both decisions. For reasons set out herein, we now affirm the decision of the Commonwealth Trial Court.

FACTS

Plaintiff Saipan Secretarial Services is a cnmi corporation run from the home of its president, Stacy Pounds. Pounds was a part-time secretary for the CNMI personnel office ir the fall of 1984 when she became aware of a federal program for . the development of an automatic records system to compile criminal records data. The program provided grant assistance from the federal government to communities to facilitate the implementation of an integrated criminal records system. Pounds spearheaded the CNMI's efforts to acquire the funding for the program and it was through these efforts that the CNMI obtained a $25,000 grant to develop the program.

The funding was forwarded to the CNMI and steps were initiated to implement the program. Director of Public Safety [172]*172Felix B. Cabrera instructed Pounds to publish a "R.equest for Proposals”, in an effort to locate prospective contractors for the project, which Pounds published once in a local newspaper. The ad solicited proposals for the first phase of the project which were due one week after the date of publication. Saipan Secretarial Services with its bid of $25,000 was the only entity that responded to the solicitation , At Cabrera's behest, Pounds drafted a letter stating that Saipan Secretarial Services proposal was "selected" and that Pounds was invited to discuss the project and set out priorities for its successful completion.

Subsequently, Pounds and Cabrera signed a standard CNMI contract form governing the work for the project. Pounds then circulated the contract to the other government officials included on the contract form, soliciting their signatures as well. These were the Governor, the Attorney General, the Public Auditir, and the Director of Finance. Attorney General Rex Kosack refused to sign the agreement because, according to Pounds, he preferred that it be awarded to and performed by the U.S. Justice Department, The contract was not signed by the Governor, the Public Auditor, or the Director of Finance, either.

Unable to obtain contract approval, Saipan Secretarial Services sued the CNMI and Kosack, in his individual and official capacity, alleging breach of contract and infringement of constitutional property rights. The Trial Court granted the government's motion for summary judgment on all counts. Additionally, the Trial Court allowed the Government and Kosack $15,047.80 attorney's fees pursuant to 42 U.S.C. §1988. Plaintiff filed a timely notice of appeal.

[173]*173ISSUES

1. Whether the Trial Court correctly ruled that there was no contract between plaintiff and defendant and, therefore, no deprivation of a property right compensable under 42 U.S.C. §1983.
2. Whether the Trial Court correctly concluded that Kosack was entitled to absolute immunity for his acts in reviewing the contract.
3. Whether the Trial Court correctly applied 42 U.S.C. §1988 when it awarded attorney's fees.

STANDARD OF REVIEW

Summary judgment is appropriate only if it is demonstrated that there exists no genuine dispute as to any material fact and that movant is entitled to judgment as a matter of law. Anderson v. Liberty Lobby, Inc., 106 S.Ct. 2505, 2511 (1986). The Court must construe the pleadings, other record evidence, and its attendant inferences most favorably to the party opposing the motion. Harlow v. Fitzgerald, 457 U.S. 800, 816, n.26 (1982). A predicate to a finding of a genuine factual issue which would entitle plaintiff to judgment if she proved her asserted version of the facts is a viable legal theory. Ron Tonkin Gran Turismo, Inc. v. Fiat Distributors, 637 F.2d 1376, 1381 (9th Cir.), cert. denied, 454 U.S. 831 (1981).

The Appellate Division reviews the Trial Court's findings of fact under a clearly erroneous standard. Schenk v. Government of Guam, 609 F.2d 387, 390 (9th Cir. 1979). Conclusions of law are freely reviewable. Official Creditor's Committee of Fox Markets, Inc. v. Ely, 337 F.2d 461 (9th Cir. 1964) cert. denied, 380 U.S. 978 (1965).

[174]*174ANALYSTS

- ..., I. Whether Cabrera's letter accepting; Plaint.: II ft proposal constituted a binding contract.

The trial division of this Court has held that in analyzing contracts to which the Government is a party the Government's applicable rules and regulations determine and define when a contract is enforceable. Hill v. CNMI, Civ. No. 82-0007, Decision, May 16, 1984 , p.6 (citing National Treasury Employees Union v. Reagan, 663 F.2d 239 (D.C. Cir. 1981)).

On September 14, 1984, the Governor issued to all department heads a "Revised Executive Branch Delegation of Authority to Contracting Officers and Procurement Policy." This memorandum set out, inter alia, the procedures for contracting for government services, including independent contract work like ^ that contemplated under the project which is the basis of this suit. Under these procedures, which are still in effect, contracts are prepared by a contracting officer and approved by the Personnel Officer, who then transmits the contract to the Attorney General, who reviews the contract and approves it as to "form and legal capacity." The Attorney General then forwards the contract to the Director of Finance for review and certification of available funds after which the contract is sent to the Governor, who signs the contract and returns it to the contracting officer. The independent contractor, plaintiff in this case, then signs the contract.

Plaintiff alleges that a contract was formed when Cabrera signed the letter that Pounds had drafted selecting ^ Saipan Secretarial Services proposal for the project. As the [175]

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3 N. Mar. I. Commw. 168, Counsel Stack Legal Research, https://law.counselstack.com/opinion/saipan-secretarialemployment-services-inc-v-commonwealth-nmid-1987.