KOROR, Palau— The Court ruled on Wednesday that the Social Security Administration (SSA) violated former administrator Ulai Teltull’s right to due process when it terminated her employment contract without a hearing.
Teltull filed a lawsuit against the SSA, claiming they violated her due process rights and caused her emotional distress. The court partially ruled in her favor, finding that the SSA failed to provide her with proper notice and an opportunity to be heard before terminating her contract.
However, the court did not award damages in this decision. Instead, they stated that a separate hearing would be required to determine the extent of any damages and appropriate compensation Teltull may be entitled to.
Teltull’s attorney, Johnson Toribiong, expressed satisfaction with the ruling, calling it “very positive.” He stated that they would present evidence of damages, including harm to Teltull’s reputation and potential future employment losses stemming from the termination.
Background of the Case:
The case originated from the SSA Board of Trustees’ abrupt termination of Teltull’s employment following a lawsuit filed by the Palau Congress (Olbiil Era Kelulau) against the SSA for failing to pay legally mandated supplemental benefits to retirees.
The Social Security Administration had stopped paying these supplemental benefits previously funded through local appropriations. In 2022, the National Budget Act mandated that the SSA use its own funds to pay the supplemental benefits. However, the SSA refused, citing that the benefits were not included in the mandatory actuarial study required by Social Security law.
The SSA Board of Trustees terminated Teltull’s contract and instructed her to vacate her office immediately. The termination letter mentioned several alleged violations but did not provide Teltull with notice or an opportunity to respond to the accusations.
This week’s court decision confirms that the Social Security Administration violated Teltull’s right to due process.