by Mindy Aguon, KUAM News Tuesday, May 13, 2008 Subscribe to Mindy's newsfeed   E-mail this article Printable version KUAM Toolbar Web Widgets Get RSS headlines

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What impact an appeal that has been filed in the Earned Income Tax Credit case will have on pending payments of a multimillion dollar settlement agreement remains to be seen. Attorneys for Mary Grace Simpao and Janice Cruz filed an appeal with the U.S. Ninth Circuit Court of Appeals last week, specifically raising concerns about three major issues:

- Whether the class should have been certified
- Whether the court should have granted final approval
- Whether attorney's fees awarded were appropriate

The appeal comes just a few weeks after District Court of Guam Chief Judge Frances Tydingco-Gatewood issued her final EITC class action order, leaving intact the $90 million settlement agreement between the Government of Guam and the parties involved, saying it was fair, adequate and reasonable.

EITC class counsel Attorney Mike Phillips says he is still researching what impact, if any, the appeal will have on the government's ability to pay the judgment. There is currently $13 million set aside for the immediate payment of EITC claims pursuant to the settlement once the final judgment is filed, but with the appeal that payment as well as the remaining approximately $49 million could be delayed yet again.

Phillips expects to have a better idea of the impact by the end of the week.