After months of withholding the filing of a lawsuit based on Imperial Pacific International (CNMI) LLC’s alleged numerous promises to pay its debt, the former general contractor on IPI’s hotel-casino development project in Garapan decided Friday to bring a court action in federal court to collect $21.3 million in damages.
Pacific Rim Land Development LLC is suing IPI and five unnamed alleged co-conspirators for breach of contract (construction and promissory note) and unjust enrichment.
Pacific Rim, through counsel Colin M. Thompson, asked the U.S. District Court for the NMI to hold IPI and co-defendants liable to pay $10 million in contract damages, $5,650,000 for mechanic’s lien, and $5,650,000 for the sum certain under the promissory note.
The plaintiff also demanded other damages, pre and post-judgment interest, restitution, and attorney’s fees and court costs.
As of press time yesterday, Saipan Tribune was still awaiting comments from IPI.
Thompson said in court papers that approximately $10 million remains due and owing for the work performed by Pacific Rim on the project.
During the months after IPI failed and refused to pay its obligation to pay, plaintiff repeatedly requested IPI to pay the amounts due and owing, but IPI failed and refused to pay.
Thompson said that on Sept. 21, 2018, IPI executed a promissory note in favor of Pacific Rim for the payment of principal in the amount of $11.3 million.
Thompson said IPI promised to pay the principal amount according to a payment schedule, with the entire amount paid to plaintiff on or before June 15, 2019.
Pursuant to the terms and conditions of the promissory note, IPI promised to pay $1.2 million on or before Nov. 15, 2018.
Thompson said IPI failed to pay the amount due on Nov. 15, 2018, making only half of the payment.
Thompson said IPI, despite repeated demands and despite numerous promises, has not paid the promissory note in full and only partial payments between Nov. 15, 2018, and August 2019.
The lawyer said IPI paid Pacific Rim a total of $5,655,000 toward the principal.
Thompson said IPI is in default of the promissory note for failure to make payments in full when due.
He said IPI agreed that the unpaid balance shall bear interest at the rate of 12% per annum.
Thompson said IPI presently owes Pacific Rim $5,650,000 plus interest rate of 12% per annum.