Another company suing IPI to collect $462K

Another company has joined a long list of businesses suing Imperial Pacific International (CNMI) LLC, which is in a financial turmoil due to the closure of the casino arising from the COVID-19 pandemic.

Ping Shun Corp., through counsel Samuel I. Mok, is suing IPI before the federal court for three counts of breach of contract, one count of unjust enrichment, and one count of liability for account stated.

Ping Shun alleged that IPI failed to pay for daily meals provided to IPI’s construction workers, management, office staff, and VIP guests pursuant to a food services agreement.

Ping Shung asked the U.S. District Court for the NMI to hold IPI liable to pay $462,003 in damages, plus interest, attorney’s fees, and court costs.

As of press time yesterday, Saipan Tribune was still awaiting IPI’s comments.

According to Mok in the complaint filed Thursday, Ping Shun or its assignors provided breakfast, lunch and dinner at IPI’s request from Dec. 21, 2016, to Dec. 31, 2019, for thousands of individuals involved in the construction of its hotel-casino project in Garapan as well as IPI’s own employees and VIP guests.

Mok said the food services, in the aggregate amount of $440,682, were provided by two different restaurants in Garapan that were operated by Ping Shun or its assignors.

Mok said IPI also breached a residential lease agreement related to the housing of some of IPI’s employees and/or construction workers by failing to pay for damages $20,683 related to furniture and appliances that were damaged and/or unlawfully taken from the premises prior to the end of the lease term.

On July 1, 2016, IPI allegedly agreed to sublease a 10-unit residential apartment building in Sadog Tasi called the Orange House from Shun Lin Zeng for a three-year term ending on July 10, 2019.

Mok said that at the end of the sublease, Zeng inspected the apartments and discovered missing furniture and appliances such as a washing machine, a dryer, five refrigerators, and two beds. Mok said Zeng also found damaged furniture and appliances throughout the building that required repair or replacement.

The lawyer said IPI also failed to pay $638 for spa services provided to its executives and VIP guests, on Feb. 19, 2019, and on Feb. 2, 3, 4, and 5, 2020.

He said Ping Shun or its assignors submitted invoices every month to IPI for all of the goods and services provided to IPI. Mok said IPI received each of these invoices without objection but did not fully pay for the goods and services it received. Instead, he said, IPI claimed that it was experiencing financial difficulties and promised to ultimately pay in full for all of the invoices.

“To date, IPI has failed to pay the outstanding balance due and owing to plaintiff despite due demand,” Mok said.

The lawyer said the current amount owed by IPI for all goods and services provided by Ping Shun or its assignors is $462,003. Mok contended that IPI’s failure to pay for goods and services received constitutes a breach of contract, unjust enrichment, and liability for account stated.

IPI is facing multiple lawsuits in federal court and Superior Court from many companies for alleged non-payment of services and other reasons.

A contractor last week obtained a writ of execution from the federal court that directs the U.S. Marshal to seize IPI’s money from four banks and two title companies to satisfy a $6.9-million judgment.