A corporation is suing Imperial Pacific International (CNMI) LLC in federal court to claim a payment of $180,000 for allegedly breaching their lease agreement by failing to pay any rent for 20 apartment units and destroying or taking furniture, fixtures, and other property belonging to the corporation when it vacated the premises.
Red Coral Corp. asked the U.S. District Court for the NMI to enforce the parties’ arbitration agreement and compel IPI to cooperate.
As of press time yesterday, Saipan Tribune was still waiting for comments from IPI.
Red Coral counsel Colin M. Thompson said their lease agreement contains an arbitration clause requiring either party to arbitrate their disputes arising from the lease. Thompson said Red Coral has sent several demand letters as well as a demand to arbitrate, but IPI has not responded. Without cooperation from IPI, the lawyer said, Red Coral cannot arbitrate its dispute as it is required to do under the lease agreement.
According to the complaint, Red Coral and IPI executed a lease agreement on July 15, 2016, where Red Coral leased 20 apartment units to IPI for a term of three years ending on Sept. 1, 2019. Thompson said the lease mandated that both IPI and Red Coral arbitrate any disputes arising from the lease.
IPI allegedly failed to pay any rent to Red Coral for the months of January through August 2019.
Thompson said that when Red Coral inspected the apartment units, it was discovered that much of the appliances and other property were either missing or destroyed.
He said IPI’s failure to pay rent and repair damage to the premises is a breach of the lease provisions.
Red Coral has claims against IPI in the amount of $180,000, not including interest and cost.
Thompson said due to IPI’s actions and failure to cure its breaches of the lease, Red Coral was forced to hire an attorney to assist in the collection efforts.
On Dec. 6, 2019, Red Coral’s attorney served IPI with a notice and demand letter outlining Red Coral’s damages and demanding payment from IPI for those damages. The lawyer said Red Coral never received a response from IPI.
On June 5, 2020, Red Coral served IPI’s attorney of record with another notice of default and demand letter.
Finally, Thompson said, after no response from IPI, on June 23, 2020, Red Coral’s attorney sent IPI’s attorney of record a final demand for arbitration invoking the arbitration clause of the lease.
He said IPI has not responded to the arbitration demand.