Tropical Gardens: IPI nearly caused bankruptcy

Tropical Gardens Inc. sued Imperial Pacific International (CNMI) LLC yesterday, saying the company nearly caused it to go bankrupt for refusing to pay for plant materials at its Imperial Pacific Resort Hotel, which is being built in Garapan.

Tropical Gardens, through counsel Daniel T. Guidotti, is suing Imperial Pacific, which does business as Best Sunshine International, and 10 unnamed co-defendants, for breach of contract, promissory estoppel, and unjust enrichment.

Guidotti asked the U.S. District Court for the NMI to hold Imperial Pacific and co-defendants liable to pay the company enough to pay for lost profits and out-of pocket expenses.

The company is also demanding payment for its out-of-pocket expenses in caring for Imperial Pacific’s phoenix palms.

According to the complaint, Imperial Pacific contracted Worldwide Asia Engineering Limited, a Hong Kong corporation, to develop the landscaping plan, procure plants for the landscaping, and manage the installation of plants for the hotel.

Guidotti said that in early 2016, at Imperial Pacific’s instruction, Worldwide Asia initiated a solicitation of bids for the procurement of plants and installation of those plants at the hotel.

In June 2016, Tropical Gardens responded to Imperial Pacific’s solicitation, with a quotation for $1.3 million plus a schedule of costs for supply of plant material to the hotel, and $640,550 plus an action plan to install plant materials.

Guidotti said that, in June 2016, Worldwide Asia informed Tropical Gardens that Imperial Pacific accepted Tropical’s bids for the supply and installation solicitations.

At the end of June 2016, Tropical Gardens signed a purchase order provided by Imperial Pacific in the amount of $1,317,612, the total amount that Tropical Gardens provided in its bid for the supply contract.

Guidotti said according to the purchase order, Imperial Pacific was to pay 50 percent of the supply contract price to Tropical Gardens.

The lawyer said in accordance with the supply purchase order, Tropical Gardens submitted an invoice to Imperial Pacific in which Tropical Gardens requested payment of $658,806, the initial deposit required under the supply purchase order.

Guidotti said during July 2016, Tropical Gardens began propagating and procuring plant materials for the hotel.

Guidotti said that, in mid-July 2016, Imperial Pacific paid $329,403 or 25 percent of the amount due to Tropical Gardens under the supply purchase order.

During the course of performing under the supply purchase order and the installation bid, Tropical Gardens spent sums of money in excess of the $329,403 partial payment that Imperial Pacific delivered to Tropical Gardens in mid-July 2016.

Guidotti said that in early November 2016 because Tropical Gardens had nearly exhausted its cash reserves, it submitted an invoice for $236,522 to Imperial Pacific.

Guidotti said Imperial Pacific refused to make the partial payments that Tropical Gardens requested.

As a result of non-payment, Tropical Gardens allegedly released more than half of its workers a few days before 2016 Christmas, used all of its cash reserves, halted its performance under the supply purchase order and the installation bid, and incurred taxes and other debts that the company cannot pay.

Guidotti said on and after July 17, 2016, Tropical Gardens expended substantial sums of money unloading the 50 phoenix palms from shipping containers, transporting the palms to a temporary storage site, and caring for the palms from July 2016 through the present.

To date, the lawyer said, Imperial Pacific has not repaid Tropical Gardens for any sums that Tropical expended for those services for phoenix palms.