Insurance firm sues garment, landscaping firms

An insurance company sued a garment manufacturer yesterday for failing to pay premiums and a landscaping firm for failing to repay the plaintiff for issued surety bonds.

Premier Insurance Co. Inc., through attorney Danilo T. Aguilar, accused Rifu Apparel Corp. of breach of contract and unjust enrichment, and Landscapers Micronesia Corp. of breach of contract.

In the civil complaint against Rifu, Aguilar recalled that, from April 2004 to March 2005, Premier issued Rifu $41,000 worth of surety bonds on credit. Of this amount, Rifu has allegedly paid only $8,450.

Besides the balance of $32,550, Aguilar said Rifu should pay the $25 charge Premier incurred on a check issued by Rifu that was returned for insufficient funds.

“The defendant’s refusal to pay the balance of the contract amount is a breach of contract of the agreement by the defendant with the plaintiff. [Premier] is entitled to compensation for damages to be proven at trial,” said Aguilar.

He added that Rifu has been unjustly enriched by operating and profiting from its business without paying Premier for surety bonds required by the CNMI Department of Labor.

In a separate complaint, Aguilar said Landscapers owes Premier $6,351.85 for the payment made by the insurance firm to satisfy a Labor administrative order against Landscapers.

Aguilar noted that since Aug. 8, 2001, Landscapers requested and was issued several surety bonds by Premier.

On May 16, 2003, the Labor Department issued an administrative order for a labor case ordering Landscapers to pay wages to certain employees.

On June 19, 2003, Premier received a letter from Labor stating that Landscapers had failed to pay the employees as ordered and that Premier must satisfy the obligation pursuant to the bond.

Premier made a payment of $7,251.85 a week later.

On July 27, 2003, Premier wrote Landscapers reminding the company of their indemnity agreement and requesting payment. Landscapers made an $800 payment on the same day.

This was not followed by another payment until July 19, 2005, when Landscapers sent Premier $100.

Aguilar said Landscapers still refuses to pay the balance of $6,351.85, in violation of its indemnity agreement with Premier.

The insurance firm asked the court to order Rifu and Landscapers to pay Premier an award of general damages, attorney’s fees and costs of suit, and post-judgment interest, among other things.