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Contractor sues for breach of contract
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Posted on Dec 28 2020
A contractor has filed a lawsuit with the U.S District for the NMI against a former employer for failing to pay what was owed to them pursuant to their written agreement.
Peace & Order Trading Corp. is suing Fairyland Investment LLC, which is owned by Zhi Qi Shen, for breach of construction contract and unjust enrichment.
Peace & Order, through its lawyer, Colin Thompson, said that Peace & Order stopped work on the project because Fairyland refused to pay the amount owed for work that Peace & Order completed under the construction contract.
As of November, Peace & Order is entitled to damages of no less than $775,701.98, Thompson said, plus interest and attorney’s fees and a mechanic’s lien against the real property occupied by the apartment that Peace & Order renovated and made additional construction.
Thompson said that despite repeated requests for payment, Fairyland failed and refused to pay Peace & Order the balance due and owing pursuant to the provisions of the contract.
According to the lawsuit, Peace & Order and Fairyland executed the contract on March 31, 2018. Peace & Order was hired to remodel and build an apartment building on Navy Hill.
On Dec. 23, 2019, Peace & Order entered into two additional contracts to renovate the parking lot and fix the fire alarm system in the apartment.
The price for the first contract was $1,305,000 and the amount of the two additional contracts was $195,000, the lawsuit stated.
To date, Fairyland paid a total of $654,298.02 to Peace & Order for the first contract and $70,000 for the two additional contracts.
Fairyland acknowledged that, as of Dec. 18, 2019, it did not have issues, questions, and concerns as to the progress of the work done on the project.
Fairyland acknowledged that Peace & Order completed 75% of the work on the project and that the contractor performed all work pursuant to the contracts in a safe manner.
The lawsuit stated that Fairyland did not respond to two notices for demand of payment by Peace & Order.
