Settlement conference tomorrow
Two months have passed since District Court Judge Consuelo Marshall ruled in favor of tax payers in a tax refund class action suit against the government.
However, neither party could agree on a proposed permanent injunction which would make clear how and when tax refunds would be paid out. As a result, another federal judge has ordered the matter for a settlement conference in which he would assist in the dispute.
Judge Marshall on Aug. 21 had ordered both parties to submit a proposed permanent injunction by Sept. 21. While attorneys for the taxpayers have complied and submitted their proposal—which seeks a payment of tax refunds within six months—the government responded by seeking an extension while at the same time objecting to the proposal.
The government of Guam has argued that the proposed permanent injunction failed to address the $30 to $40 million still owed and the $105 million projected shortfall for the payment of 2012 tax year returns, pointing out that Guam requires more than six months to pay the refunds.
Although the court vacated its previous deadlines to give both the government and taxpayers’ counsel more time to reach an agreement by Oct. 19, Magistrate Judge Joaquin Manibusan issued an order at the request of the parties to assist in the matter through a settlement conference.
The settlement conference is set for tomorrow, Oct. 24, at 2 p.m. Each party is ordered to submit a confidential settlement letter by the morning.