The U.S. District Court for the NMI has granted Imperial Pacific International (CNMI) LLC\u2019s request for a temporary restraining order prohibiting the Commonwealth Casino Commission from moving forward with its revocation hearing today to decide whether or not to revoke the casino investor\u2019s exclusive casino license. <\/p>\n
IPI and its sister company, Best Sunshine International Ltd., asked the federal court yesterday for preliminary injunctive relief that sought to preserve the status quo or prohibit the CCC from pursuing the revocation of IPI\u2019s license, pending a determination of the parties\u2019 rights and liabilities by an arbitral tribunal\u2014defined as a panel of one or more adjudicators tasked to resolve a dispute between two parties through arbitration.<\/p>\n
IPI and Best Sunshine also sought a temporary restraining order to temporarily suspend the CCC\u2019s revocation hearing that was set to begin today. <\/p>\n
Chief Judge Ramona Manglona granted IPI\u2019s requested TRO around 5pm yesterday, stopping the CCC from proceeding with the revocation process. <\/p>\n
One of the main reasons the TRO was granted, Manglona said, was that the potential harm to IPI and Best Sunshgine should the court decline their motion for a TRO greatly outweighs any harm that the CCC may incur. <\/p>\n
Manglona noted that the plaintiffs anticipate receiving $150 million in financing before the end of May to make payments due to the Commonwealth Casino Commission and other creditors and to resume its operations. <\/p>\n
\u201cAny revocation of IPI\u2019s license following the CCC\u2019s hearing scheduled for May 24, 25 puts [IPI] at risk of this much needed capital infusion. Therefore the balance of hardships tips decidedly in plaintiffs\u2019 favor,\u201d the order stated. <\/p>\n
In addition, Manglona said, plaintiffs have raised serious questions going to the merits of requiring arbitration pursuant to the Casino License Agreement. <\/p>\n
Manglona also stated in her order that if the court declines to grant a temporary restraining order, plaintiffs will incur immediate and irreparable injury because plaintiffs will be deprived of their contractual right to assert a force majeure defense of the Casino License Agreement and a procedural right to the dispute resolution process that allows for arbitration and the opportunity to submit the arbitrator\u2019s decision to the Commonwealth Superior Court.<\/p>\n
Lastly, the public interest would be served by the issuance of a temporary restraining order, she said.<\/p>\n
According to Saipan Tribune archives, CCC is seeking the complete revocation of IPI\u2019s license because it has failed to comply with the requirement to lift its suspension, like paying over $30 million in fees.<\/p>\n
\u201cThey are technically legally suspended by the CCC, and it has been upheld by the CNMI Superior Court. Now, they\u2019re challenging us in Supreme Court for the suspension order. Now, while that\u2019s in play, I\u2019m seeking revocation. This is a further action to the suspension because they couldn\u2019t remedy the suspension order. When we suspended them, we said, \u2018You need to pay all the regulatory fees, the casino license fee, and we need you to pay that immediately to [lift] your suspension\u2019 but that hasn\u2019t happened. That\u2019s why I filed five more enforcement actions against them, because they did not live up to the suspension order,\u201d said CCC executive director Andrew Yeom in a previous interview.<\/p>\n
IPI\u2019s\u00a0exclusive license was suspended back in May 2021\u00a0and the casino operator was given six months to pay both the $15.5 million casino license fee, the $3.1 million regulatory fee, and a $6.6 million fine to lift the suspension.<\/p>\n","protected":false},"excerpt":{"rendered":"
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