RNV sues Imperial Pacific to collect $1.7M

The owner of RNV Construction is suing Imperial Pacific International CNMI LLC for allegedly refusing to pay $1,672,078 for the construction of a casino training facility at the T Galleria in Garapan.

RJCL Corp., owner of RNV Construction, is suing Imperial Pacific for breach of contract, breach of the implied covenant of good faith and fair dealing, unjust enrichment, and fraud.

RJCL Corp., through counsel Jennifer Dockter, asked the Superior Court to hold Imperial Pacific liable to pay an unspecified amount in damages, court costs, and attorney’s fees.

In an emailed statement, Imperial Pacific said it has retained a professional legal team to defend itself from the lawsuit.

“The company fully respects its local partners and the local laws. We will address RNV’s claims in court and not in the media. We believe the court will render a fair judgment,” the statement adds.

It said Imperial Pacific is committed to its investment. “Sustainable development and localization are very important for the rapid growth of the company and the CNMI. We continue to work with different business partners, the CNMI government and the community to develop the local economy, offer job opportunities and to promote Saipan as a premier international tourist destination.”

Imperial Pacific, which operates the best Sunshine LIVE casino training facility inside the T Galleria, assured that the company’s project in Garapan, called Imperial Pacific Resort, is not affected by the lawsuit and continues to progress according to schedule.

RNV and Imperial Pacific entered into a $3,230,000 contract on April 13, 2015, for the construction of a casino training facility at the Duty Free shopping mall.

Dockter said throughout construction and after RNV began work, Imperial Pacific demanded large changes to the project, resulting in increased costs and required RNV to perform additional work.

Dockter said that Imperial Pacific always demanded that its change orders be immediately implemented and often reported to RNV that time was of the essence.

The lawyer said RNV was working almost 24 hours a day to complete the changes and construction. The variation costs, she said, totaled $1,808,398.90.

Dockter said RNV completed the construction on the casino in June 2015.

Dockter said Imperial Pacific made incremental payments that were not according to the schedule agreement of the original contract.

Dockter said that in November 2015, Imperial Pacific and RNV conducted a “walk through” of the construction.

She said Imperial Pacific notified RNV of a “punch list” of items in the VIP portion of the building it wanted RNV to “fix,” which RNV did, at no added cost to Imperial Pacific.

On May 25, 2016, RNV informed Imperial that Imperial Pacific’s failure to pay RNV was hurting the company financially.

That same day, Dockter said, Imperial Pacific informed RNV that it would not pay the company until additional “fixes” were completed.

In reliance of the promise, Dockter said, RNV immediately completed the additional “fixes” at no additional cost to Imperial Pacific on June 9, 2016.

On June 22, 2016, Dockter said, Imperial Pacific certified RNV’s work was complete and again promised to make payments.

Imperial Pacific allegedly continues to owe RNV approximately $161,500 under the original contract price and $1,510,578.70 for the variation costs.

Dockter said despite repeated promises, Imperial Pacific has failed to pay the remaining amounts owed RNV.

Dockter said the defendant accepted the benefits of the contract, but has refused to render payments due and owing to RNV.

Dockter said as a result of Imperial’s breach of contract, RNV has suffered damages.

The lawyer said over a period of more than one year, the defendant made multiple promises to RNV that its payments were forthcoming.

“Imperial Pacific’s actions violate the community standards of decency, fairness, and/or reasonableness,” Dockter said.

Dockter said Imperial Pacific intentionally induced RNV to undertake additional work, at no cost to Imperial Pacific, based upon its false promise of payment.