Imperial Pacific International (CNMI) LLC asserts that no mediation happened between it and its former contractor prior to Pacific Rim Land Development LLC suing IPI, and therefore the federal court should dismiss the case.
IPI, through counsel Joseph E. Horey, said that any dispute between Pacific Rim and IPI was supposed to go through mediation first—as required under their contract—prior to taking the case to court. Horey said this did not happen before Pacific Rim sued IPI, and has not taken place since.
Horey then asked the U.S. District Court for the NMI to dismiss the lawsuit until such time that the parties have attempted to resolve the dispute through mediation.
“At the very least, it should be stayed until mediation has taken place,” said Horey in IPI’s motion to dismiss.
Pacific Rim, through counsel Colin Thompson, is suing IPI and five unnamed alleged co-conspirators for breach of contract (construction and promissory note), and unjust enrichment.
Pacific Rim claimed to have substantially completed or completed the agreed-upon construction work on Sept. 30, 2018. Thompson said the unpaid amount that is owed Pacific Rim is $5.65 million, but it wants to collect from IPI approximately $10 million in damages that would proven at trial.
In IPI’s motion to dismiss, Horey said the contract requires that, before any kind of “binding dispute resolution” over any “controversy or claim arising out of or relating to” the contract can take palace, the parties must first try to resolve the dispute between them by negotiation, and if negotiation is unsuccessful, by mediation.
Horey said Pacific Rim fails to state that mediation took place prior to the onset of litigation, or indeed that it ever took place at all.