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IPI accuses former contractor of overstating the costs it incurred

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Imperial Pacific International (CNMI) LLC said yesterday that its former contractor, Pacific Rim Land Development LLC, intentionally overstated the costs it incurred in performing its contract for the construction of IPI’s hotel/casino project in Garapan.

Pacific Rim fraudulently obtained from IPI a promissory note, which is therefore unenforceable, according to IPI counsel David G. Banes, without elaborating.

Banes filed yesterday before the U.S. District Court for the NMI IPI’s opposition to Pacific Rim’s second amended application for a mechanic’s lien and IPI’s request to dismiss the case.

Pacific Rim, through counsel Colin M. Thompson, is suing IPI for breach of contract for allegedly refusing to pay services in the amount of $5.65 million.

Pacific Rim subsequently filed an application for a mechanic’s lien on IPI’s hotel-casino project and on the land that it sits on. A mechanic’s lien refers to a security interest in the title to property for the benefit of those who have supplied labor or materials that improve the property.

The court then consolidated the lawsuit and the application for a mechanic’s lien.

In IPI’s opposition to Pacific Rim’s second amended application for mechanic’s lien, Banes said the application should be dismissed due to Pacific’s Rim failure to negotiate in good faith and mediate, which was a condition prior to bringing the lawsuit.

Banes said the application should be denied for failure to set forth “the work or material furnished” by Pacific Rim as required by the applicable statute.

Last Dec. 3, finding that Pacific Rim had not established jurisdiction, Chief Judge Ramona V. Manglona dismissed the lawsuit, but allowed the contractor to amend its complaint.

Manglona also denied Pacific Rim’s application for a mechanic’s lien, but allowed the contractor to amend it.

Pacific Rim claimed to have substantially completed or completed the agreed-upon construction work for IPI’s casino-resort project on Sept. 30, 2018.

Ferdie De La Torre | Reporter
Ferdie Ponce de la Torre is a senior reporter of Saipan Tribune. He has a bachelor’s degree in journalism and has covered all news beats in the CNMI. He is a recipient of the CNMI Supreme Court Justice Award. Contact him at ferdie_delatorre@Saipantribune.com

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