Contractor objects to IPI’s concern about ghost workers

Colin M. Thompson

A former contractor of Imperial Pacific International (CNMI) LLC and its owner are objecting to IPI’s subpoena that seeks records from the contractor suggesting unfounded allegations about “ghost workers.”

Colin M. Thompson informed IPI general counsel Phillip J. Tydingco Tuesday last week that his clients—Pacific Rim Land Development LLC and its owner, Keith Stewart—object that IPI’s subpoena does not give his clients reasonable time to collect and produce the large amounts of documents that IPI is requesting by that day, Tuesday, at 1:30pm.

In his letter to Tydingco dated Tuesday, Thompson said IPI served the subpoena on Stewart last Monday at 3pm.

Thompson said Tydingco is the attorney and IPI is the party responsible for issuing and serving the subpoena.

Tydingco’s last day as IPI’s general counsel was last Friday. Tydingco, however, informed the U.S. District Court for the NMI last Tuesday, that he is no longer counsel for IPI in the case filed by Pacific Rim and several others against IPI.

Thompson said Tydingco did not take reasonable steps to avoid imposing undue burden or expense on his clients.

Thompson said the timing and scope of the subpoena are unreasonable and create an undue burden.

“Under the terms of the promissory note and construction contract, your demand for documents is completely irrelevant and therefore your subpoena is unreasonable,” Thompson told Tydingco in the letter.

Among the documents that Tydingco requested in the subpoena are records detailing the qualifications of Pacific Rim’s workers.

Tydingco said there is a concern that not all Pacific Rim workers satisfied the contractual qualification standard for the work category and that there may have also been “ghost workers.”

Tydingco said this will necessitate IPI reviewing and analyzing the records detailing the qualifications of Pacific Rim’s workers.

Tydingco also requested for time records and actual payments made to all workers to ensure Pacific Rim’s invoices were based on the actual wages paid to the workers.

In Pacific Rim’s and Stewart’s objection, Thompson said IPI is now concerned that there may have been “ghost workers” included in Pacific Rim’s invoicing.

Thompson said this concern is unfounded as IPI conducted multiple headcounts on the job site during the construction activities.

“IPI’s own audits would reveal any discrepancies between on-site workers and invoided labor,” Thompson said.

U.S. District Court for the NMI Chief Judge Ramona V. Manglona ordered Monday the consolidation of Pacific Rim’s lawsuit and an application for a mechanic’s lien filed against IPI.

Last Sept. 20, Pacific Rim Land Development, through counsel Colin M. Thompson, filed the lawsuit against IPI for breach of contract.

Pacific Rim subsequently filed an application for a mechanic’s lien on IPI’s hotel-casino project and on the land that it sits on.

A mechanic’s lien refers to a security interest in the title to property for the benefit of those who have supplied labor or materials that improve the property.

Last Dec. 3, finding that Pacific Rim had not established jurisdiction, Manglona dismissed the lawsuit, but allowed the contractor to amend its complaint.

Manglona also denied Pacific Rim’s application for a mechanic’s lien, but allowed the contractor to amend it.

Last Dec. 4, Pacific Rim filed its amended complaint and an amended application for a mechanic’s lien. That same day, the company filed an application for a mechanic’s lien against IPI in a new proceeding.

In her order consolidating the two cases, Manglona said that, while not identical, the applications for the lien involve the same construction project, the same property, and the same parties.

Pacific Rim originally sued IPI and five unnamed alleged co-conspirators for breach of contract (construction and promissory note), and unjust enrichment.

Pacific Rim claimed to have substantially completed or completed the agreed-upon construction work for IPI’s casino-resort project on Sept. 30, 2018.

Pacific Rim counsel Thompson said IPI owes the contractor $5.65 million.