Kan Pacific sues IPI again for non-payment
Kan Pacific Saipan Ltd. is again suing Imperial Pacific International (CNMI) LLC in the U.S. District Court for the NMI, claiming that IPI has breached its contract and has once again failed to make required annual payments.
Kan Pacific, through its lawyer, Joseph Iacopino, filed a new complaint against IPI last Aug. 14 in federal court, alleging that IPI has continuously failed and refused to pay Kan Pacific even after the court issued a default judgment against the casino investor back in 2022.
Kan Pacific sued IPI back in 2021 for failing to fulfill its obligation under an agreement they made back in May 2016. Specifically, IPI was obligated to pay Kan Pacific annual payments in June 2020, June 2021, and June 2022, amounting to over $400,000.
The court issued a default judgment against IPI amounting to over $600,000 but IPI has yet to make any payments to date.
Kan Pacific alleges that IPI now owes another $200,000 for its June 2023 annual payment.
As relief, Kan Pacific wants the court to set the matter for a jury trial, order IPI to pay damages, the sum owed, the costs to file the suit, prejudgment interest, attorney’s fees, and other relief deemed appropriate by the court.
The case arises from a written agreement that was entered between Kan Pacific and IPI on or about May 9, 2016. This case was originally filed with the Superior Court but was dismissed back in July 2021.
The written agreement was meant to incentivize and compensate Kan Pacific for the closure of Kan Pacific’s business operations prior to the termination of its lease agreement.
The agreement between Kan Pacific essentially transferred all assets and operations from Kan Pacific to IPI and required Kan Pacific to encourage present employees to join IPI.
As part of the consideration for entering into the agreement, IPI became contractually and legally bound and obligated to pay Kan Pacific the sum of $5 million, which was to be satisfied by making 25 annual payments to Kan Pacific in the amount of $200,000 on June 1 of each calendar year starting on June 1, 2017.
IPI made the first three annual payments that were due in June 2017, June 2018, and June 2019. However, Iacopino said that IPI failed and refused to tender any portion of the amount that became due and owing on June 1, 2020.
Casino
