IPI to remove one of its cranes

Imperial Pacific International (CNMI) LLC has been allowed to remove one of the cranes at its Garapan worksite so it can petition the Superior Court to release the $2.3 million being held under the crane litigation fund.

In the lawsuit filed by U.S. Department of Labor, District Court for NMI Chief Judge Ramona Manglona allowed the removal of Crane 4 from the IPI construction site but maintained the stop-work order that prohibits work on the hotel-casino project.

In a notice filed in court by Glenn Bell, the leader of the Italian construction team, Bell said IPI allowed workers on site last week to dismantle Crane 4 in blatant disregard of court directions. However, Manglona clarified that the stop-work order prohibits work on the improvement, construction, and development of the IPI hotel-casino only, and does not prohibit work to remove the crane.

Right now, only the top portion of the crane has been removed. With the court’s go-signal, IPI will then work to remove the crane’s supporting structure. IPI attorney Michael Dotts informed the court that IPI anticipates to take the equipment down in the next three to six days.

Dotts explained in a hearing last week that $2.3 million had been deposited with the CNMI Superior Court to serve as the crane litigation fund in case a lawsuit is filed relating to the cranes and their safety. Aside from one claim against those funds for $250,000, IPI can petition for the remainder of the funds after the removal of crane 4.

IPI is looking at using the crane litigation funds to satisfy the sanctions imposed on it to purge itself of contempt.

According to court documents, a subcontractor of IPI, under the supervision of two IPI employees, were allowed onto the jobsite last Jan. 29 to resume the removal of Crane 4 despite the stop-work order.

Dotts said IPI employees allowed it and were present for supervision because of a miscommunication regarding the stop-work order.

IPI employees believed that the stop-work order did not cover removal of the crane. The other IPI employees then brought the subcontractor onto the jobsite.

Dotts said he discovered that the crane was being removed through the filing made in court by Bell, the Italian construction worker team leader.

Last week, Manglona ordered IPI to pay the remaining balance on the consent judgement in the next 30 days or a receiver would be appointed to liquidate its assets.

The balance of the consent judgment is at $1.2 million and IPI must also deposit $800,000 into an escrow account to cover future employee payrolls.