ALTHOUGH the Department of Revenue and Taxation believes further settlement discussions would not be beneficial regarding the Dennis and Asuncion Rodriguez case – in which the department claims the couple owes $2.3 million in non-payment of taxes and penalties from 1996 to 2001 – the court has expressed its desire to explore “one more attempt at alternative dispute resolution.”

The court met the parties last week Wednesday for a first preliminary pre-trial conference and the parties are to appear for a settlement conference before U.S. Magistrate Judge Joaquin V.E. Manibusan Jr. on Tuesday, April 10 at 9 a.m.

The court set a bench trial for June 5 at 9:30 a.m.

The court has ordered that each party submit a confidential settlement letter, no more than 10 pages in length, by Tuesday, April 3 at 3 p.m. The letter is not to be filed with the court, but should be submitted to the Clerk’s Office in a sealed envelope and labeled with the case number, including strengths and weaknesses, and the party’s settlement position, including the last offer or demand made by the party and a statement of the offer or demand the party is prepared to make at the settlement conference.

The settlement conference letter shall be returned to the party that submitted the letter at the end of the settlement conference.

Although First Hawaiian Bank was brought in as a party to the action in the amended counterclaim, the court will not require FHB’s counsel or its representative to participate in the settlement conference. However, the court will require that the bank submit a confidential settlement letter which sets forth the loan balances of any and all mortgages, to include the principal and accrued interest and attorneys fees and costs that must be paid before the mortgage is released.

The Ninth Circuit Court on Nov. 16, 2011 dismissed the Rodriguez couple’s appeal, which challenged the Guam Department of Revenue and Taxation’s claim that they owe $2.3 million in non-payment of taxes and penalties from 1996 to 2001.

Dennis and Asuncion are the parents of Democrat Sen. Dennis Rodriguez Jr.

The Ninth Circuit’s order to dismiss the appeal for lack of jurisdiction was granted, “because the district court’s order challenged in this appeal did not dispose of the action as to all claims and all parties.”

“All other requests for relief are denied,” the court ruled.

In an Aug. 12, 2011 order, Judge Manibusan entered a judgment in favor of Rev and Tax after Rodriguez and his wife argued that the department failed to comply with applicable laws and regulations in conducting an independent administrative review of an offer to settle their tax debt. The couple offered a $40,000 settlement. DRT rejected the offer.

Instead, Rev and Tax filed a counterclaim to foreclose liens on the Rodriguez couple’s real property to collect on the liability. However, the court has yet to address the merits of DRT’s counterclaim.

Rev and Tax has placed tax liens against all current and future property owned by the couple.

According to court documents, the prospect for a settlement is very poor. Tom Fisher is the attorney for Dennis G. and Asuncion S. Rodriguez. Rev and Tax is represented by Assistant Attorney General David Highsmith.