Court denies writ of execution sought by IPI creditors

The U.S. District Court for the NMI has denied the writ of execution sought by Imperial Pacific International (CNMI) LLC creditors who were previously granted judgments by the Superior Court.

The creditors—Fujitec Pacific Inc., Hemine Ipwan Islam dba IPWAN Security Services and GT Building Systems International Ptd.—are allegedly owed over $500,000 by IPI and the Superior Court had awarded them judgments that have yet to be satisfied. The two companies have sought in the district court a writ of execution against IPI’s personal property in order to pay the judgments.

However, U.S. District Court for the NMI Chief Judge Ramona has denied the motion because the creditors only have state court judgments—not federal court judgments.

“Here, the CNMI judgment creditors do not have federal court judgments. Nor do they seek to register their judgments under an applicable federal statute. Because it is clear ‘Rule 69 is not available to enforce state court judgments in federal court,’ and the CNMI judgment creditors seek to enforce state court judgments pursuant to Rule 69, the court denies the application for writ of execution as to the CNMI judgment creditors. Rule 69 is not a vehicle through which federal courts can enforce state court judgments, which is exactly what the CNMI judgment creditors are attempting to accomplish,” said Manglona in her order.

According to Saipan Tribune archives, the IPI judgment creditors, through lawyer Colin Thompson, applied for a writ of execution in the U.S. District Court for the NMI against IPI’s personal properties.

The creditors asked the district court to issue a writ of execution against IPI’s vehicles, liquor, IPI’s crystal dragons, IPI’s computer hardware, IPI’s furniture and equipment, IPI’s casino-related and security equipment, and any other non-exempt personal property identified by the creditors to be sold in an auction to satisfy the IPI creditors’ judgments.

According to the application, the Superior Court entered three judgments in favor of Fujitec against IPI: judgment in the amount of $1,288,603.95 plus post-judgment interest at the rate of 9% per annum on Jan. 3, 2023; judgment in the amount of $1,378,056.50 plus post-judgment interest at the rate of 9% per annum on Jan. 26, 2023; and three judgments on attorney’s fees and costs in the amount of $12,295.50 plus post-judgment interest at the rate of 3% per annum on April 14, 2023.

The Superior Court also entered a judgment in favor of IPWAN in the amount $188,125.30 plus post-judgment interest at the rate of 9% per annum against IPI on Dec. 13, 2022.

As for GT Building, the Superior Court entered a judgment in favor of the creditor in the amount of $833,816.48 plus post-judgment interest at the rate of 9% per annum against IPI on March 9, 2022.

GT Building also applied for two writs of executions against IPI, and another writ of execution remains pending. The amount seized from IPI to satisfy the GT Building judgment, including the pending writ of execution, is in the amount $74,086.89.

This leaves the remaining amount against IPI from the GT Building’s judgment at $759,729.59 plus post-judgment interest.