IPI funds in BOS to be seized to pay Red Coral

The U.S. District Court for the NMI has issued a writ of execution in favor of Red Coral Corp., allowing the seizure of Imperial Pacific International (CNMI) LLC funds deposited in the Bank of Saipan to satisfy a $163,500 judgment against the casino investor.

Magistrate judge Heather Kennedy informed IPI last Friday that the court has issued a writ of execution against it that would allow the U.S. Marshal Service to seize its money that is held at the Bank of Saipan to satisfy a $163,500 judgment granted in favor of Red Coral.

“A writ of execution was issued against you. It was issued because there is an outstanding judgment against you. It may cause your property to be held or taken to pay the judgment,” she said.

In the order granting the writ of execution, District Court for the NMI Chief Judge Ramona Manglona said she is granting Red Coral’s second application for a writ of execution because there is still an outstanding balance that remains in the judgment against IPI, and the application meets the requirements of federal rules of civil procedure.

“Having considered the second application for writ of execution, the court finds that the application meets the requirements of the federal rules of civil procedure, which governs writs of execution in the CNMI. It is therefore ordered that the clerk issue the writ of execution to the U.S. Marshal for the seizure of IPI’s money or currency held at the Bank of Saipan, as further identified in the application for the writ,” Manglona said.

According to court documents, this writ of execution was the second application submitted by Red Coral. This second writ was specific to IPI’s money held at Bank of Saipan.

The court previously denied Red Coral’s first application for a writ of execution over IPI’s personal property, including but not limited to, motor vehicles, computer hardware, furniture and equipment, gaming equipment, fixtures, indoor furnishings, appliances, and cash currency in or around the Imperial Pacific Resort and Casino in Garapan, because the judgment plus interest and costs was grossly less than the value of the property the plaintiff had sought to sell via a writ of execution.

The court had also denied the plaintiff’s application for a writ over IPI’s real property as writs of execution can only be levied against the personal property of the party.

The civil judgment granted in favor of Red Coral was entered back on Feb. 12, 2021, in the amount of $150,000, plus post-judgment interest at the rate of 9% per annum, and costs.

Red Coral applied for writs of execution because they allege that this entire amount—now at $163,500, inclusive of post-judgment interest to date—remains unsatisfied.

According to Saipan Tribune archives, Red Coral, an apartment owner, sued IPI because the casino investor allegedly breached its lease agreement by failing to pay any rent for 20 apartment units, and destroying or taking furniture, fixtures, and other property belonging to the corporation when it vacated the premises.