The District Court for the NMI has ordered Red Coral Corp., which does business as Camille Gardenia, and Imperial Pacific International LLC to settle their rental dispute some other way.
District Court for the NMI chief Judge Ramona V. Manglona ordered Red Coral and IPI to go through arbitration, defined online as an alternative form of dispute resolution and is a way to resolve disputes outside the courts.
Manglona stated in her order that the parties are bound by mutual agreement to participate in arbitration administered by a qualified CNMI or Guam lawyer, pursuant to the Commercial Arbitration Rules of the American Arbitration Association.
Manglona said the arbitration should be done no later than 45 days following the issuance of her order, after which she will enforce any award, settlement or judgment agreed to by both parties.
Red Coral earlier asked the court to compel IPI to a binding arbitration regarding its non-payment of residential lease. On Sept. 2, Red Coral and IPI filed a stipulation stating that IPI agreed that it was contractually bound to participate in an arbitration and would do so.
Manglona, following her order, has since vacated the hearing set for Sept. 17 and denied the petition of Red Coral as moot. She also ordered the clerk of court to close the case.
Colin Thompson, representing Red Coral, said IPI and Red Coral entered into a lease agreement that contains an arbitration clause requiring either party to arbitrate their disputes arising from the lease.
Thompson said IPI breached the lease agreement by failing to pay rent and destroying or taking furniture, fixtures, and other property belonging to Red Coral when it vacated the premises.
Thompson added that Red Coral sent several demand letters as well as a demand to arbitrate but IPI had not responded to any of those demands. Without cooperation from IPI, Red Coral could not arbitrate its dispute as required under the lease agreement.
Back in July 15, 2016, Red Coral leased 20 apartment units to IPI for a term of three years ending on Sept. 1, 2019. However, IPI allegedly failed to pay any rent to Red Coral for the months of January through August 2019.