The CNMI Board of Education and its members are being sued in the Superior Court by the former education commissioner Cynthia Deleon Guerrero.
She alleges that her termination last October was in retaliation for questioning the board's management and for her refusal to request a transfer of funds to the board's account.
She said the board requested the transfer from the CNMI Public School System after it depleted its account.
Ms Deleon Guerrero claims that her firing violated her constitutional rights.
She wants the board to be held liable and pay her $US350,000 in compensatory damages.
She also wants damages from the individual board members.
The board voted to terminate Ms Deleon Guerrero's four year contract "without cause" while she was attending a conference in Hawaii.