District Court dismisses software company’s suit vs. IPI

The U.S. District Court for the NMI has dismissed the complaint filed by a software company based in China against Imperial Pacific International (CNMI) LLC over nonpayment of services.

Last Tuesday, District Court for the NMI Chief Judge Ramona V. Manglona issued an order dismissing the lawsuit filed by DAC Investment Management (China) Ltd. against IPI alleging nonpayment of an over $200,000 balance due under an agreement made between IGT Asia Pte Ltd. and IPI.

Manglona dismissed the lawsuit on the grounds of lack of jurisdiction.

“A review of the complaint reveals that subject matter jurisdiction has not been properly pleaded; therefore, the court issues this decision and order sua sponte dismissing the action for lack of jurisdiction and granting DAC leave to amend its complaint,” said the order.

In her order, Manglona explains that in its complaint, DAC asserts diversity jurisdiction. However, the court concludes it does not have diversity jurisdiction based on the complaint as presently alleged, so she is allowing the plaintiff to amend its complaint.

“This court has repeatedly recognized its lack of diversity jurisdiction for parties’ failure to adequately plead the citizenship of businesses. DAC has failed to sufficiently plead the citizenship of IPI, which requires dismissal of its complaint. Because DAC identifies IPI as a limited liability corporation, DAC must identify IPI’s members and their citizenships. Since the complaint lacks these allegations, DAC had not met its burden to establish diversity jurisdiction,” she said.

DAC Investment Management (China) Limited previously sued IPI for nonpayment of software and other services in the amount of $278,719.06.

DAC, through attorney Michael White, said under an agreement between IGT Asia Pte Ltd. and IPI that was signed on Nov. 18, 2016, IGT was to provide software and various other services to the casino operator.

In turn, IPI agreed to make certain payments to IGT. However, IPI allegedly failed to do so, leaving IGT with an unpaid claim against IPI.

On March 19, 2024, IGT entered into a debt purchase agreement with DAC, pursuant to which IGT sold and transferred to DAC all of IGT’s right, title, and interest in its claim against IPI.

“DAC now seeks to recover from IPI the principal sum of $278,719.06, together with interest and attorney’s fees,” the lawsuit said.