CCC files counterclaim vs IPI

The Commonwealth Casino Commission, through the Office of the Attorney General, filed last Wednesday a counterclaim in federal court against the Imperial Pacific International (CNMI) LLC.

Assistant attorney general Benjamin K. Petersburg asked the U.S. District Court for the NMI that if the CCC is determined by the court to be liable for releasing information of IPI’s subsidiaries, IPI should indemnify CCC.

Petersburg asked the court to hold IPI liable to pay CCC damages, court costs, and attorneys’ fees.

IPI gave CCC information that included data about IPI’s subsidiaries, Grand Marianas (CNMI) LLC and Imperial Pacific Properties LLC.

Last July 12, Grand Marianas and IPP filed a complaint as intervenors in IPI’s lawsuit against CCC, alleging various causes of action against CCC related to the public availability of the information provided by IPI to CCC pursuant to the order which Commonwealth law specifically declares not confidential.

Petersburg said IPI knew, at the time it provided information to CCC, that the information would be made publicly.

Benjamin Petersburg

“To the extent that the CCC may be at all liable in any way for the public availability of information related to the intervenors which was deemed confidential by Commonwealth law, it is solely due to IPI’s actions in including intervenors’ information in its submissions to the CCC pursuant to the order,” the lawyer said.

Petersburg said the subsidiaries’ lawsuit seeks damages against the CCC premised on the action of IPI in providing intervenors’ information to CCC.

Petersburg said if the CCC is determined to be liable to the intervenors, the CCC may be ordered to pay damages, attorneys’ fees, and costs of suit.

He said CCC is without fault in regards to the disclosure or public availability of any information related to IPI’s subsidiaries.

Petersburg said that, without IPI’s inclusions of intervenors’ information in its submissions to the CCC, the CCC would not be liable for damages.

He said because IPI included the intervenors’ information in its submission to the CCC, the CCC could be held liable to the subsidiaries for damages as a result of the disclosure of publicly available information.

“The CCC’s potential liability is the direct and proximate result of IPI’s active and affirmative conduct,” he said.

As a result, Petersburg said, the CCC is entitled to complete indemnification by IPI for all sums for which the CCC may be held liable in relation to the disclosure of information provided by IPI to CCC.

IPI is suing CCC for their plans to disclose to the OAG confidential tax return information that is allegedly protected under the CNMI Constitution. (see related story)