The power and water provider in the Northern Marianas has agreed to drop a lawsuit against the CNMI government for not paying its debt.
Saipan in the Northern Marianas. Photo: Supplied
The Commonwealth Utilities Corporation brought the action in 2013 over $US1.24 million it was owed by the government.
The settlement was confidential in nature and was reached after the two parties held discussions with the judge.
Superior Court Associate Judge Joseph Camacho went on to dismiss the corporation's lawsuit with prejudice meaning it could not re-file the case.
The corporation had alleged the government breached its utility contract and at the time, the government argued that the public utility corporation lacked capacity to sue the state.