Marianas Public Land Trust v. Government of the Commonwealth of the Northern Mariana Islands Marianas Public Land Corporation

The Government of the Commonwealth of the Northern Mariana Islands and the Marianas Public Land Corporation appeal from the decision of the Appellate Division of the District Court for the Northern Mariana Islands. The appellate division held that funds transferred from the United States to the Commonwealth were rent from Commonwealth lands and ordered that the funds be paid over to the Marianas Public Land Trust. We reverse.

FACTS AND PROCEEDINGS BELOW

The Northern Mariana Islands consist of sixteen small islands north of Guam. The islands were part of the United Nations Trust Territory of the Pacific Islands, administered by the United States. See H.J. Res. 233, 61 Stat. 397 (1947). In 1976, the Northern Mariana Islands entered into a commonwealth relationship with the United States. Covenant to Establish a Commonwealth of the Northern Mariana Islands in Political Union with the United States of America, Pub.L. 94-241, 90 Stat. 263 (March 24, 1976), reprinted in 48 U.S.C. § 1681 at 298-307 (1987) and 1 C.M.C. B-101 [hereinafter Covenant]. The Covenant was contingent on the final termination of the Trusteeship Agreement, Covenant art. X, § 1003(c), an event which occurred on…