USA Fanter Corp. Ltd. has filed another breach of contract lawsuit against Imperial Pacific International (CNMI) LLC, even as IPI has yet to satisfy the judgment of over $2 million in USA Fanter’s previous breach of contract suit.
USA Fanter, through attorney Colin Thompson, filed the breach of contract lawsuit against IPI last week with the U.S. District Court for the NMI.
The lawsuit alleges that IPI failed to pay a construction staging lease agreement and construction contract that involved quarry products and heavy equipment rentals.
Without factoring interest or late fees, IPI owes USA Fanter $61,600 for unpaid property rent, $87,772.55 for the unpaid change order work, $15,462 for unpaid quarry materials, and $61,292.50 for unpaid heavy equipment rentals—for a total of $226,127.05, according to Thompson.
In the complaint, Thompson is asking the U.S. District Court for the NMI to award USA Fanter general compensatory and consequential damages in amounts to be shown in accordance with proof at the time of trial, the $226,127.05 owed pursuant to the invoices, oral contracts, and delivery slips, and attorneys fees.
According to the lawsuit, on or about Dec. 15, 2015, IPI leased property owned by USA Fanter by the execution of a staging lease agreement with the term commencing on Feb. 22, 2016, and ending on Dec. 31, 2018, with no right to extend the term of the lease. Pursuant to the lease, IPI agreed to pay plaintiff rent on or before the 25th day of each month.
Thompson said IPI did make some payments to USA Fanter on a month-to-month basis for its occupancy of the property.
However, when IPI transitioned into a holdover occupancy of the property after the lease agreement ended, the monthly payments were reduced to only $5,600 per month.
Thompson said the last payment IPI made to plaintiff for its holdover occupancy of the portion of the property was for July 2019.
“Even though IPI stopped making any payments to plaintiff for its continued occupancy of the property, defendant continued to occupy and make use of the property” the lawsuit stated.
The lawyer said USA Fanter served IPI with invoices for the amounts outstanding for the occupancy and use of the property but IPI has not responded to these invoices or demands for payment.
Meanwhile, Thompson said USA Fanter and IPI also executed a written construction contract for construction of off-site improvements that was beyond the scope of their previous construction contract.
On Nov. 20, 2018, plaintiff submitted to IPI a change order proposal detailing the cost breakdown of the additional work, which totaled $87,772.55. On March 28, 2019, IPI sent USA Fanter a signed letter agreeing to the change order and agreeing to pay plaintiff $87,772.55 upon completion of the change order work. On July of 2019, USA Fanter completed all of the work pursuant to the change order but IPI allegedly refused to make the $87,772.55 payment.
“Plaintiff repeatedly demanded that defendant pay all amounts due and owing for work performed pursuant to the change order and construction contract. Despite repeated requests and demands for payment, defendant failed and refused to pay plaintiff the $87,772.55 due,” Thompson said.
As for the complaint regarding the nonpayment of ordered quarry products and heavy equipment rental, Thompson said IPI ordered that USA Fanter procure and deliver quarry products to defendant on different occasions and that they’d pay for the products.
IPI allegedly failed to pay these orders and rentals that totaled $61,292.50.
According to Saipan Tribune archives, USA Fanter has a pending lawsuit against IPI of over $2 million for its failure to pay the full amount due to plaintiff under their construction contract for labor and materials provided for the improvement of IPI’s resort and casino.