Apartment investor Fairyland Investment LCC has been ordered to pay over $700,000 after the U.S. District Court for the NMI issued a default judgment order against it, as requested by Peace and Order Trading Corp., a contracting company.
U.S. District Court for the NMI Chief Judge Ramona V. Manglona directed the clerk of court last week to enter a default judgment against Fairyland Investment in the principal amount of $767,697.50 plus attorney’s fees and costs, including applicable federal interest rate for post-judgment interest.
According to Manglona, the court ruled in favor of the plaintiffs because Fairyland Investment failed to answer or otherwise plead its case. It was not immediately known why Fairyland failed to respond to the lawsuit.
Manglona has yet to issue a ruling on the plaintiff’s application for a mechanic’s lien but placed the matter under advisement.
A mechanic’s lien as a legal claim against property, typically used by contractors or suppliers when they haven’t received payment for improvements they made to a property.
Peace and Order, through lawyer Colin Thompson, is suing Fairyland Investment for breach of construction contract and unjust enrichment. It said Fairyland Investment hired it to remodel and build an apartment building on Navy Hill on Saipan. Peace and Order stopped work on the project because Fairyland Investment refused to pay the amount owed for work completed under the contract.
Thompson said Peace and Order is entitled to damages not less than $775,701.98 plus interest and attorney’s fees, and a mechanic’s lien against the property occupied by the apartment that Peace and Order renovated.