Wiseman stops Hyunjin from removing assets

SAIPAN—The Superior Court issued a temporary restraining order yesterday preventing a garment manufacturer and its agents or employees from removing any personal property from its factory compound in Gualo Rai.

Associate Judge David A. Wiseman, however, permitted the manufacturer, Hyunjin Saipan Inc., to ship cargo containers carrying garments outside of Saipan.

It was reported that Hyunjin would cease operations in the CNMI on Feb. 10, 2006.

Wiseman signed the modified TRO against Hyunjin following a lawsuit filed by real estate developer Kevin International Corp. against the garment manufacturer.

In allowing the shipment of the cargo containers, the judge said that, if the garments were not shipped on time to their destination, Hyunjin would incur substantial losses.

“[And] such loss would be detrimental to both parties by decreasing the overall liquid assets of defendant. Therefore enjoining such shipment is not in the interest of either party,” the judge noted.

Kevin International had asked the court to prevent Hyunjin from removing any personal property from its premises and stop its three cargo containers from leaving the island.

Kevin International, through counsel Viola Alepuyo, alleged that the containers carried personal property such as the defendant’s manufacturing assets.

After hearing testimony that the containers solely contained Hyunjin’s work product garments and that this could be easily verified by presenting the bill of lading, Wiseman said in his order that he would not interfere with the shipment.

“This court’s reluctance to obstruct the shipment of defendant’s garments is especially appropriate given the extremely time-sensitive nature of the garment and fashion business,” he said.

Wiseman, however, said he does see a sufficient basis for a TRO to issue with respect to non-garment assets of Hyunjin, pending a preliminary hearing set for the following week.

Wiseman ordered that neither Hyunjin nor any persons acting on their behalf, including stevedores, freight forwarders, ship agents, or warehousemen, shall cause to permit the personal property, not including garments for export, to leave Saipan by air or sea.

The defendant, however, may ship the three cargo containers outside of Saipan, if accompanied by a bill of lading stating that they contain only garments, he stressed.

The court set a preliminary hearing date for Jan. 12, 2005 at 1:30pm to revisit the issues underlying the TRO.

Kevin International sued Hyunjin for anticipatory breach of contract. It demanded damages for lost rents, attorney’s fees, and court costs.

Kevin International counsel Alepuyo stated in the complaint that in October 2000, Hyunjin entered into a lease agreement with Marianas Management Corp. for ground lease in Gualo Rai.

In February 2000, Alepuyo said, defendant entered into an agreement with New Saipan Development to construct three employee barracks on the premises.

The parties agreed that Hyunjin would lease the barracks from plaintiff for an initial period of up to seven years but not less than five years, the lawyer said.

The agreement required defendant to issue a $300,000 line of credit, of which $200,000 was used for the purchase of construction materials with the understanding that this amount would be offset against monthly rent.

The agreement, Alepuyo said, also required that the remaining $100,000 of the original line of credit be reserved as a fixed security deposit.

In June 2001, Alepuyo said, her client purchased the assets of New Saipan Development Inc., including all rights under the agreement between New Saipan and Hyunjin.

Defendant failed to make their December 2005 and January 2006 rental payments for the barracks, she said.

Alepuyo said a news article recently appeared indicating that Hyunjin would cease operations in the CNMI on Feb. 10, 2006.

“At this time, defendant has failed to make two monthly rental payments and the termination of defendant’s business operations and evident departure from the CNMI makes it appear that defendants intend to breach their agreement and this plaintiff is entitled to the full remaining rent under their seven-year agreement,” she said.

The removal of any merchandise and or equipment from defendant’s premises will cause irreparable harm to Kevin International, the lawyer said.