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Construction company sues owner of Kensington
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Posted on Nov 16 2016
A construction company is suing the owner of Kensington Hotel for allegedly refusing to pay the full contract price for renovation of the hotel’s VIP lounge and compensation for construction and consultation services for other projects.
Saipan Hwa Rang Corp., which does business as D. System Construction, is suing Micronesia Resort Inc., for unjust enrichment and for breach of contract.
Saipan Tribune tried but failed yesterday to get comments from Micronesia Resort.
Saipan Hwa, through counsel Mark Scoggins, asked the Superior Court to hold Micronesia Resort liable to pay the company for damages, court costs, and attorney’
In April 2015, Micronesia Resort solicited bids for the renovation of Kensington Hotel Saipan, which was previously known as the Hotel Nikko and the Palms Resort Saipan. D. System Construction prepared and submitted a bid for the renovation project.
According to Scoggins in the complaint, Micronesia Resort did not award the renovation project to D. System or any other contractor.
The lawyer said Micronesia Resort’s solicitation for bids was not made in good faith.
Scoggins said that, in July 2015, D. System entered into a contract with Micronesia Resort to renovate the VIP Lounge at the Kensington Hotel.
Scoggins said that Micronesia Resort has refused to pay the full contract price to D. System in breach of contract.
In addition to the contract work, Micronesia Resort allegedly requested several changes above the contract price.
Scoggins said D. System did the requested changes for the VIP Lounge but Micronesia Resort has refused to pay.
In addition to the VIP Lounge, Scoggins said D. System became a subcontractor to another contractor and agreed to provide renovation and construction services for an area in the Kensington Hotel known as the Cocomong Camp.
In addition to the subcontract work, Micronesia Resort allegedly requested D System to make many changes to the Cocomong Camp above the contract price, and D. System agreed to provide this work.
Scoggins said D. System fully performed the requested changes for the Cocomong Camp, but Micronesia Resort has refused to payt.
