Kan Pacific sues IPI anew for breach of contract

Share

Kan Pacific Saipan Ltd. has moved its breach of contract lawsuit against Imperial Pacific International (CNMI) LLC to the U.S. District Court for the NMI and is now demanding a jury trial in the matter.

Kan Pacific, through its lawyer, Joseph Iacopino, filed a complaint yesterday with the federal court alleging that IPI has continuously failed and refused to pay Kan Pacific since its last payment in June 2019, breaching the agreement they made back in May 2016.

Iacopino said IPI remains obligated to pay Kan Pacific the June 2020 and June 2021 annual payments, among other things, amounting to over $400,000.

Aside from a jury trial, Kan Pacific wants the court to order IPI to pay damages, the sum owed, the costs to file the suit, prejudgment interest, attorney’s fees, and other relief deemed appropriate by the court.

The case arises from written agreement that had been entered between Kan Pacific and IPI on or about May 9, 2016. This case was originally filed with the Superior Court but was dismissed back in July.

The written agreement was entered between Kan Pacific and IPI was meant to incentivize and compensate Kan Pacific for the closure of Kan Pacific’s business operations prior to the termination of its lease agreement.

The agreement between Kan Pacific essentially transferred all assets and operations from Kan Pacific to IPI and required Kan Pacific to encourage present employees to join IPI.

As part of the consideration for entering into the agreement, IPI became contractually and legally bound and obligated to pay Kan Pacific the sum of $5 million, which was to be satisfied by making 25 annual payments to Kan Pacific in the amount of $200,000 on June 1 of each calendar year starting on June 1, 2017.

IPI made the first three annual payments that were due in June 2017, June 2018 and June 2019. However, Iacopino said IPI failed and refused to tender any portion of the amount that became due and owing on June 1, 2020.

“Kan Pacific sent IPI more than 10 days’ notice of such default, and IPI has nevertheless continued to refrain from tendering any portion of such payment or any other amount that has become due and owing thereafter, including the annual payment that became due and owing on June 1. 2021,” he said.

Kimberly B. Esmores | Reporter
Kimberly Albiso Bautista has covered a wide range of news beats, including the community, housing, crime, and more. She now covers sports for the Saipan Tribune. Contact her at kimberly_bautista@saipantribune.com.

Related Posts

Disclaimer: Comments are moderated. They will not appear immediately or even on the same day. Comments should be related to the topic. Off-topic comments would be deleted. Profanities are not allowed. Comments that are potentially libelous, inflammatory, or slanderous would be deleted.