IPI denies USA Fanter’s new allegations

Imperial Pacific International (CNMI) LLC has denied USA Fanter Corp. Ltd.’s allegations that it breached another contract and has asked the court to dismiss the case with prejudice.

IPI, through its lawyer, Joey P. San Nicolas, has asked the U.S. District Court for the NMI to dismiss with prejudice the lawsuit that USA Fanter filed last month. Dismissal with prejudice means the plaintiffs would not be able to refile their suit.

“Defendant is without sufficient information to form a belief as to the truth of the allegations,” San Nicolas said.

In his filing, San Nicolas asked that USA Fanter will take nothing from the lawsuit and that it be made to pay for the costs of the suit and other fees.

USA Fanter, through Colin Thompson, filed the breach of contract lawsuit against IPI last October. The lawsuit alleges that IPI failed to pay a construction staging lease agreement and construction contract that involved quarry products and heavy equipment rentals.

IPI allegedly owes USA Fanter $61,600 for unpaid property rent, $87,772.55 for the unpaid change order work, $15,462 for unpaid quarry materials, and $61,292.50 for unpaid heavy equipment rentals—for a total of $226,127.05, not factoring in late fees.

In the complaint, Thompson is asking the U.S. District Court for the NMI to award USA Fanter general compensatory and consequential damages, the $226,127.05 owed pursuant to the invoices, oral contracts, and delivery slips, and attorneys fees.

According to the lawsuit, on or about Dec. 15, 2015, IPI had leased property owned by USA Fanter by the execution of a staging lease agreement from Feb. 22, 2016, to Dec. 31, 2018. IPI allegedly agreed to pay plaintiff rent on or before the 25th day of each month. Thompson said IPI did make some payments to USA Fanter on a month-to-month basis for its occupancy of the property. However, when IPI transitioned into a holdover occupancy of the property after the lease agreement ended, the monthly payments were reduced to only $5,600 per month.

Thompson said the last payment IPI made to USA Fanter for its holdover occupancy of the portion of the property was for July 2019.

The lawyer said USA Fanter served IPI with invoices for the amounts outstanding for the occupancy and use of the property but IPI has not responded to these invoices or demands for payment.

Meanwhile, Thompson said USA Fanter and IPI also executed a written construction contract for construction of off-site improvements that was beyond the scope of their previous construction contract.

On Nov. 20, 2018, plaintiff submitted to IPI a change order proposal detailing the cost breakdown of the additional work, which totaled $87,772.55. On March 28, 2019, IPI sent USA Fanter a signed letter agreeing to the change order and agreeing to pay plaintiff $87,772.55 upon completion of the change order work. On July of 2019, USA Fanter completed all of the work pursuant to the change order but IPI allegedly refused to make the $87,772.55 payment.

As for the complaint regarding the nonpayment of ordered quarry products and heavy equipment rental, Thompson said IPI ordered that USA Fanter procure and deliver quarry products to defendant on different occasions and that they’d pay for the products.

IPI allegedly failed to pay these orders and rentals that totaled $61,292.50.