The U.S. District Court for the NMI has issued a conditional approval for Imperial Pacific International (CNMI) LLC’s request to deposit funds from an investor into an account to satisfy the court judgement in favor of Pacific Rim Land Development LLC.
District Court for the NMI Chief Judge Ramona V. Manglona has granted conditional approval to IPI’s motion to deposit nearly $6 million of its investor’s funds into a CNMI bank to secure the payment of judgment in favor of Pacific Rim.
However, Manglona ordered IPI to transfer the full amount authorized by its investor, Pacific International Property Management LLC, to attorney Colin Thompson’s law office trust account pending further order from the court.
Manglona said the funds should be deposited no later than today, Oct. 27.
IPI recently asked the court to allow its investor to deposit nearly $6 million in a CNMI bank to secure the money for Pacific Rim as a better alternative to auctioning off its assets.
According to Saipan Tribune archives, IPI lawyer Michael Dotts said that, with this alternative, Pacific Rim is fully secured and no more harm needs to be done to IPI’s business in the process of Pacific Rim executing on its judgment.
IPI has appealed the judgment so it is also asking the court to enter an order restricting the bank account designated to secure Pacific Rim.
Dotts said that, should IPI prevail on the appeal, the funds can be released back to the investor, and should Pacific Rim prevail on the appeal, then all restrictions placed on the funds can be lifted and Pacific Rim will be fully paid.
Thompson who represents Pacific Rim, sued IPI for breach of contract and breach of promissory note. Pacific Rim said IPI refused to pay for services in the amount of $5.65 million for substantially completed or completed agreed-upon construction work for the IPI casino-resort project on Sept. 30, 2018.
According to Pacific Rim, the unpaid balance due on the judgment is now not less than $5.52 million.