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2 resorts locked in legal battle over debt
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Posted on Apr 25 2002
The Riviera Resort Club Saipan is suing a fellow industry player on ground of alleged breach of contract, stemming from a 1994 oral agreement that the defendant has allegedly refused to honor.
The plaintiff, through counsel Danilo T. Aguilar, filed an $800,000-damages suit against Saipan Koresco Resort Club, alleging that the latter has failed to live up to its part in a debt agreement that both parties had entered into last May 1994.
The Riviera Resort, also known as Changsin Resort Saipan Corp., stated in a civil complaint filed at the Superior Court that Saipan Koresco Corp. owes the plaintiff some $800,000 in remaining balance as of January 17, 2002.
According to court documents, the plaintiff remitted a series of financial loans to the defendant that has accumulated to over $1 million in November 1994. Portions of that amount had been settled by Koresco beginning May 1995 until April 1996, the Riviera Resort noted.
The plaintiff, however, asserted that the defendant last made a $128,805 payment to the Riviera Resort and has made no follow-ups after April 29, 1996.
In February 2002, the plaintiff asserted that a representative from Koresco Resort allegedly denied the existence of any loans that the latter company was said to have made.
“Plaintiff received notification from defendant’s agents that defendant did not acknowledge the existence of any loan from plaintiff and denied any liability to pay the remaining balance,” the Riviera Resort contended in its court complaint.
The plaintiff added that the “notification provided by Koresco denying the existence of the debt owed constitutes a repudiation of oral contract and as a result, defendant is in breach of contract.”
The Riviera Resort believes it is entitled to the remaining balance due from the agreement, adding that it has “suffered and continues to suffer damages resulting from the defendant’s breach of its oral promise to pay.”
Aside from $800,000 in damages representing the remaining balance of the alleged debt amount, the plaintiff is also seeking an award of pre judgment interest, court costs and other relief.
