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Tax refund lawsuit to have first hearing this week

Tax refund lawsuit to have first hearing this week

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The tax refund lawsuit filed by Governor Eddie Calvo is scheduled to have its first hearing in the Supreme Court of Guam this week. 

A scheduling conference has been set for June 22nd at 10 am. 

The governor’s lawsuit requests an interpretation and application of the Organic Act and what constitutes the affirmative vote of the Guam Legislature. 

The administration believes the inaction of lawmakers to forward the TRAN bill to the front office is an attempt to block them from using the Tax Revenue Anticipation Note, which would allow a $75 million dollar credit line to speed up the payment of tax refunds.

Speaker BJ Cruz has since filed a resolution that states the TRAN lawsuit, exceeds the scope of existing contract legal services and now requires a new legal services agreement for counsel. It further states that no more than $15,000 is to be spent on litigation and any more funding will require approval from the committee on rules.

The Governor contends the Organic Act trumps the Legislature's standing rules, and that only a majority vote is all that is needed for legislation to pass.

Supreme Court Justice Robert Torres has since recused himself from the case because of a conflict of interest. Torres' wife is Senator Mary Camacho Torres, as is stated in his court memorandum. 

Calvo responded to that he respectfully objects to the inclusion of Justice Torre as a panel member in the case. He adds he does agree to waive the disqualification of Justice Torres.

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