Source: http://fsmlaw.org/fsm/decisions/vol9/9fsm565_568.htm
Timestamp: 2019-04-24 00:20:36+00:00

Document:
For the Defendants: Ready Johnny, Esq.
Civil rights are guaranteed to all FSM citizens under the Declaration of Rights, which is Article IV of the FSM Constitution. Congress conferred a cause of action for violation of civil rights by enacting 11 F.S.M.C. 701 et seq., pursuant to subsection (3). Davis v. Kutta, 9 FSM Intrm. 565, 568 (Chk. 2000).
When Chuuk has ultimate access to money on a monthly basis that greatly exceeds the amount of the civil rights judgment, Chuuk must pay the judgment. Davis v. Kutta, 9 FSM Intrm. 565, 568 (Chk. 2000).
A court shall determine the fastest manner in which the debtor can reasonably pay a judgment. Davis v. Kutta, 9 FSM Intrm. 565, 568 (Chk. 2000).
When a judgment was entered over four years ago, and the bulk of it remains outstanding and the debtor has the means to pay, the judgment should be paid forthwith. Davis v. Kutta, 9 FSM Intrm. 565, 568 (Chk. 2000).
This is a continuation of plaintiff's motion for order in aid of judgment filed December 15, 1997.
or may not be the case, the court expressly does not rely on this potential borrowing for the purposes of this order.
Per its memoranda, Chuuk recites that it has nearly fifteen million dollars invested in the investment pool maintained by the four states, while Chuuk's present liabilities amount to approximately fifteen and a half million dollars, including a 3.8 million dollar loan for airport renovation. Mr. Tiser Lippwe, Acting Director of Chuuk's Treasury Department, states in the memorandum filed on October 25, 2000, that Chuuk's "local and national revenue cash drawdown" is approximately $300,000 per month. Chuuk's biweekly payroll is approximately $600,000 and Chuuk evidently has sufficient revenues to meet this obligation twice a month, and occasionally three times monthly. According to Mr. Lippwe, most of the monthly drawdown goes towards the payroll, with the remainder going for travel advances, rental, supplies, and municipal salaries not covered by the state payroll.
Judgment against Chuuk in the amount of $130,000 was entered in this case on August 9, 1996, while an award of attorney fees and costs totalling $43,237.05 was entered on December 5, 1997. Taking into account the fact that Chuuk has made three payments of $5,000, $800, and $480 on the judgment thus far, the total due in interest and principal as of November 7, 2000, is $226,412.83, with daily interest accruing at $41.17 for each day thereafter.2 Thus, the amount of money that Chuuk has available to it on a monthly basis to meet its obligations greatly exceeds the amount of the judgment. Pursuant to 6 F.S.M.C. 1409, the court finds that Chuuk has the ability to pay the judgment.
judgment and fees in full. Notwithstanding any such appropriation, however, it remains incumbent upon Chuuk to discharge this obligation. This is due to the special circumstances of this case. The judgment and fees were awarded based on Chuuk's violation of the civil rights of one of its citizen. Those rights are guaranteed to all FSM citizens under the Declaration of Rights, which is Article IV of the FSM Constitution. Congress conferred a cause of action for violation of civil rights by enacting 11 F.S.M.C. § 701 et seq., pursuant to subsection (3) of which this case was brought. That subsection also permits recovery of attorney's fees. For the reasons this court discussed in another case brought under 11 F.S.M.C. 701 et seq., Louis v. Kutta, 8 FSM Intrm. 208, 211-14 (Chk. 1997), and where as here Chuuk has ultimate access to money on a monthly basis that greatly exceeds the amount of the judgment, Chuuk must pay the judgment.
Section 1409 of 6 F.S.M.C. mandates that the court "shall . . . determine the fastest manner in which the debtor can reasonably pay a judgment." The judgment in this case was entered over four years ago, but the bulk of the judgment remains outstanding. This fact militates against installment payments on the judgment. The judgment should be paid forthwith.
Accordingly, Mr. Tiser Lippwe, in his official capacity as Acting Director of the Department of Treasury of the State of Chuuk, shall no later than December 29, 2000, issue a check to Menry Davis drawn on state funds. The amount of the check will be the full amount of the judgment and attorney's fees, which is $226,412.83, plus daily interest accruing at $41.17 for every day after November 7, 2000, that the judgment remains unpaid. Mr. Lippwe is further ordered to take all necessary steps to insure that the check is drawn on sufficient funds.
Upon the receipt of payment, plaintiff's counsel will promptly file a satisfaction of judgment with the court.
1. As part of her request, Davis asks for a further hearing to "to compel Mr. Lippwe to testify concerning this oversight [i.e., the fact that his memoranda does not address how the judgment will be paid]." The court has already held the hearing mandated under 6 F.S.M.C. 1409. In light of the information provided in Chuuk's submissions, no further hearing is necessary.
Three payments have been made on the judgment: $5,000, by check dated December 1, 1997; $800, by check dated March 1, 1998; and $480 on July 15, 1998. There is no information in the file as to how this last payment was made, but the court will assume it was by check. As to the date of receipt for each payment, the court will use the FSM Civil Rule 6(e) time period of 6 days.
The judgment was entered on August 9, 1996. The interest on the balance of $130,000 from that date until the first payment of $5,000, credited on December 7, 1997, is $15,546.58 (.09 X $130,000 + 120/365 X .09 X $130,000). Interest on the balance of $125,000 from December 7, 1997, until the second payment credited on March 7, 1998, is $2,773.97 (90/365 X .09 X $125,000). Interest on the balance of $124,200 from March 7, 1998, until the third payment credited on July 21, 1998 is $4,164.95 (136/365 X .09 X $124,200). Interest on the balance of $123,720 from July 21, 1998, until November 7, 2000, is $25,594.79 (2 X .09 X $123,720 + 109/365 X .09 X $123,720). Total interest on the judgment from entry on August 9, 1996, until November 12, 2000, is therefore $48,080.29.
The total of interest and principal on the judgment and fees as of November 12, 2000, is therefore $226,412.83.

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