Recycling center, owner file counterclaims vs IPI

A recycling company in Tanapag and its owner and an employee have filed counterclaims against Imperial Pacific International (CNMI) LLC for allegedly falsely accusing them of conspiring to steal and sell construction materials from IPI’s warehouses.

FSM Recycling Corp. and its owner, Jae Yoon Cha, and the company’s employee, Eric Cruz, filed counterclaims against IPI for invasion of privacy/false light, and abuse of process.

In addition, FSMRC, Cha, and Cruz, through counsel Robert T. Torres, are sung IPI for business disparagement.

FSMRC, Cha, and Cruz also filed a crossclaim for defamation against former IPI employee Ricky Reyes and 15 unnamed persons. Reyes allegedly prepared a handwritten statement in early 2020 that he and another man would cut about 10 feet of copper wire from spools owned by IPI and sell the wire to Cha at FSM Recycling. Reyes’ statement is attached as exhibit to IPI’s lawsuit against FSMRC, Cha, and Cruz. All three asked the Superior Court to deny IPI’s claim and requests for relief and instead hold it liable to pay them damages in an amount to be proven at trial, plus attorney’s fees and costs.

As to crossclaim, FSMRC asked the court to grant its crossclaim for defamation and hold Reyes liable to pay the company damages. FSMRC also asked the court to require Reyes to make a public retraction of the “false and defamatory” statements and refer him to the Office of the Attorney General for criminal prosecution.

Torres stated in the counterclaims that, as required by CNMI law and regulations that are enforced by the Department of Commerce, FSMRC maintains records of its purchases and, with regard to materials offered for sale that are made or combined with copper, the company follows a procedure to document each purchase. The lawyer said FSMRC reports all copper purchases to the Department of Commerce on government-required forms and that FSMRC has never been accused of a single violation.

Torres said FSMRC has never accepted copper for purchase from IPI or its personnel, copper from the IPI hotel project, or any other IPI-related projects. “FSMRC, Mr. Cha, and Mr. Cruz have painstakingly built their business and take pride in their company and its ability to build and maintain customer relationships based on trust,” Torres said.

The lawyer said that certain persons claiming to be IPI employees arrived at FSMRC’s yard last March 18, and requested permission to examine materials in storage and inspect the lot. He said these persons stated that certain materials had been stolen from IPI and they wanted to look for them on FSMRC premises. Because Cha was off-island, the request was denied either by Cruz or Cha’s daughter, who is the cashier/administrative assistant, Torres said

Starting on March 19, FSMRC employees reported drones flying over the premises and being followed by persons unknown to them, Torres said, adding that vehicles unknown to FSMRC, its employees and principals would park outside their Tanapag office during the day to follow FSMRC employees, Cha’s family members, and FSMRC customers. Torres said the drones and persons were employees or agents of IPI doing surveillance. Torres said these intrusive and unlawful actions continued until FSMRC hired a lawyer, at which point the harassment and privacy invasions ceased.

The lawyer said that when Cha returned to Saipan last March 20, a man arrived outside FSMRC’s office and asked for an appointment with the owner. Torres said the man spoke with Cruz and claimed he had a lot of experience in the recycling business and wanted to see his boss to make a deal about scrap metal.

Torres said the man, who when admitted into Cha’s office, identified himself as lawyer Robert O’Connor. He said O’Connor disclosed that he had not come as a purchaser, but on behalf of IPI regarding copper wire. Torres said O’Connor stated to Cha that IPI had lost some items and asked permission to look for them inside FSMRC’s lot. Torres said O’Connor accused FSMRC with purchasing copper wire and other copper fixtures from persons who had stolen them from IPI. The lawyer said O’Connor stated that he was not there to do harm, but wanted the items returned. Torres said O’Connor made clear, however, that if FSMRC did not return the copper wire and allow him to inspect the containers and the premises, they were “going to take this the hard way.”

O’Connor allegedly stated that an IPI employee reported that FSMRC had purchased copper wire from persons who had stolen it from IPI.

Torres said Cha denied this with to O’Connor. Cha asked O’Connor to provide him a list of items, a bill of lading for the items and some pictures of the stolen goods to determine if he could identify or locate which items O’Connor were referring to. A bill of lading is a document issued by a carrier to acknowledge receipt of cargo for shipment.

Torres said O’Connor stated he had documents and then asked if he could return to inspect the lot. Cha agreed to an inspection if O’Connor returned the following Monday, March 23, with the documents and brought a police officer. Cha offered to meet that following Monday when his attorney could be present.

After O’Connor left, Cha left with John “Pan” Guerrero for a pre-arranged meeting at the Guerrero family compound to purchase some plants for a house that Cha was building in Kagman, Torres said. Torres said persons unknown to Cha then proceeded to follow him and Guerrero from the FSMRC premises and took pictures of him along the way and the vehicle he was using. Torres said these persons followed Cha and Guerrero into Guerrero’s family compound. The lawyer said one of the persons following Cha attempted to gain access to the compound and examine Cha’s vehicle.

He said Guerrero confronted the person, who was an IPI employee. The person told Guerrero he was interested in examining a motorcycle for sale. “There was no motorcycle for sale,” Torres said, adding that Guerrero told the intruders to leave.

The following Monday, March 23, Cha waited for O’Connor to arrive, but the lawyer neither showed up nor bothered to call him. Torres said it was around last March 27 that Cha saw an article in Saipan Tribune about IPI’s lawsuit, accusing FSMRC, Cha, and Cruz of conspiring to commit theft. O’Connor filed the suit as counsel for IPI.

“These unsupported, unprivileged, and false accusations concerning FSMRC and its services denigrate its business, belittle its product, and were made recklessly, with malice and with reckless disregard for the truth,” Torres said.

IPI is suing FSMRC, Cha, Cruz, Reyes, and 15 unnamed co-defendants, for conversion.