IPI is notified of its rights in 2nd writ of execution

U.S. District Court for the NMI clerk Heather Kennedy notified Imperial Pacific International (CNMI) LLC on Thursday about the court’s second writ of execution that orders the U.S. Marshal service to seize IPI’s money from two title companies to satisfy a $6.9-million judgment.

Kennedy informed IPI that the second writ of execution was issued because of the outstanding judgment against the company. “It may cause your property to be held or taken to pay the judgment. You may have legal rights to prevent your property from being taken,” she said.

The law provides that certain property cannot be taken and that such properties are said to be exempt, she said. “There may be exemptions that may be applicable to you. You may have other rights,” Kennedy told IPI.

If there’s an exemption, Kennedy said IPI should demand a prompt hearing from the court. “You should come to court ready to explain your exemption. If you do not come to court and prove your exemption, you may lose some of your property,” she said.

District Court Chief Judge Ramona V. Manglona earlier found Pacific Rim Land Development LLC’s second application for writs of execution to have met the requirements of Federal Rules of Civil Procedure and a Commonwealth statute.

Manglona ordered Kennedy to issue the writs of execution as requested by Pacific Rim on Security Title Inc. and Pacific American Title Inc.

In its second application for writ of execution, Pacific Rim, through counsel Colin M. Thompson, informed the court that IPI maintains cash accounts in the CNMI in Security Title Inc. and Pacific American Title Inc. and asked the court to direct the transfer of money owned or controlled by IPI from these title companies. Thompson asked the court to hold IPI’s money in the court’s registry or account until after hearing on exemptions, if any.

Thompson said IPI has not posted a bond and has not obtained an order staying or suspending execution on a $6.9-million judgment.

Last June 8, Manglona granted Pacific Rim’s first application for writs of execution on IPI’s bank accounts. That same day, Kennedy issued the writ of execution directing the U.S. Marshal to seize IPI’s money not exceeding $6.9 million from First Hawaiian Bank, City Trust Bank, Bank of Saipan, and Bank of Guam.

Last April 27, Manglona entered a judgment in favor of Pacific Rim in the amount of $5.65 million against IPI for breach of promissory note. She later amended the judgment to incorporate pre-judgment interest and attorneys’ fees. The amended judgment set the amount at $6.9 million, plus post-judgment interest. IPI has appealed to the U.S. Court of Appeals for the Ninth Circuit.

Pacific Rim is suing IPI and five unnamed alleged co-conspirators for reportedly not paying for the construction work it did on IPI’s casino site in Garapan. IPI brought has countersued.