By Bryan Manabat
bryan@mvariety.com
Variety News Staff
MOBIL Oil Mariana Islands Inc. is seeking the recusal of Superior Court Presiding Judge Roberto C. Naraja from a long-running class-action lawsuit alleging gasoline price fixing and deceptive practices on Saipan.
In a motion filed last month, Mobil argues that Judge Naraja and his family may be class members — gasoline purchasers during the alleged period — creating a potential financial interest in the case’s outcome.
Filed in 2009, the lawsuit accuses Mobil and co-defendant Mariana Acquisition Corp. (Shell Marianas) of colluding to inflate unleaded gasoline prices from 2005 onward. The complaint cites violations of the CNMI Consumer Protection Act, including price fixing, false advertising, and unfair business practices.
The case has survived multiple dismissals and appeals.
In the amended complaint, the plaintiffs alleged that the companies acted as a cartel, coordinating fuel sourcing, pricing, and freight charges to eliminate competition and inflate consumer costs. The defendants allegedly concealed their conduct from regulators and the public, resulting in artificially high fuel prices.
Specific accusations leveled against the petroleum companies include:
– Joint sourcing. Mobil allegedly supplied fuel to Shell, creating a shared supply chain that undermined market independence.
– Uniform pricing. Both companies allegedly charged identical prices — down to the tenth of a penny — across all stations, regardless of market conditions.
– Fixed freight and discounts. The complaint claims Mobil and Shell agreed to uniform freight charges and quantity discounts, further controlling retail prices.
Th plaintiffs seek damages and restitution for all gasoline purchasers during the alleged period. The plaintiffs include Joey San Nicolas, Eulogio M. Sablan, Jose T. Limes, Jose P. Kiyoshi, and Felipe Q. Atalig, individually and on behalf of others similarly situated.
The plaintiffs recently filed a motion for class certification, prompting Mobil’s disqualification request. Represented by attorney Dawn Sestito, Mobil cited CNMI law and federal precedent requiring judges to step aside when impartiality might reasonably be questioned. “Even the appearance of bias undermines public confidence in the judiciary,” the company stated.
Mobil’s motion notes that Judge Naraja has previously recused himself in cases involving potential conflicts, including matters related to cryptocurrency and contempt proceedings. If all CNMI judges face similar conflicts due to class membership, Mobil suggests assigning the case to a judge on Guam.
In an order issued Oct. 27, Judge Naraja scheduled a hearing on the motion for Dec. 17 at 9 a.m.
Bryan Manabat was a liberal arts student of Northern Marianas College where he also studied criminal justice. He is the recipient of the NMI Humanities Award as an Outstanding Teacher (Non-Classroom) in 2013, and has worked for the CNMI Motheread/Fatheread Literacy Program as lead facilitator.