Hong Kong corporation brings lawsuit to the CNMI

A Hong Kong-based corporation is suing a principal subsidiary of Imperial Pacific International Holdings for allegedly failing to pay for professional services relating to four contracts totaling $171,500.

Hyperdrive International Limited, through counsel Robert T. Torres, is suing Prosper Wealth Global (CNMI) LLC for breach of contract and for breach of the implied covenant of good faith and fair dealing.

Torres stated in the complaint that as a direct and proximate cause of Prosper Wealth’s breach of all four contracts, Hyperdrive has suffered damages, including past due payments and late fees amounting to $277,067 as of May 16, 2017.

Hyperdrive is demanding damages, interest, attorney’s fees and court costs, plus a jury trial.

Prosper Wealth counsel Michael Dotts said the company intends to vigorously defend itself from the lawsuit.

Dotts said that what is being sought in the complaint are “late fees” and not damages because Hyperdrive performed and alleges that it was not paid. He said Hyperdrive alleges in the vaguest terms that it performed.

Notably, he said, Hyperdrive does not say how it performed.

Dotts said that Prosper Wealth is confident when this case is heard that no “late fees” will be awarded to Hyperdrive and that Prosper Wealth will prevail.

Torres said that Hyperdrive entered into four contracts with Prosper Wealth on Aug. 31, 2015, for professional services in the total amount of $171,500.

Under the contracts, Torres said, Hyperdrive shall provide to Prosper Wealth professional services regarding the “KUNLOO” brand material; graphic design services for KUNLOO standard design and KUNLOO applications; professional services for creative design and planning for the KUNLOO sales manual; and professional printing and production services on the KUNLOO sales manual.

The lawyer said that under the materials agreement, Prosper Wealth shall pay Hyperdrive $41,150 for KUNLOO brand material purchasing fees, management, and service fees.

The agreement allegedly required Prosper to pay 70 percent of the contract fee, or $28,805, within five working days of the signing of the agreement. The remaining 30 percent, or $12,345, should be paid within five working days of completion and confirmation of the work to be performed.

Prosper Wealth has allegedly failed to make any payments and a late fee of $23,784 has accrued as of May 16, 2017.

Under the graphic design agreement, Prosper Wealth allegedly shall pay Hyperdrive $80,000 for the KUNLOO for graphic design.

The graphic design agreement required Prosper to pay 50 percent of the contract fee, or $40,000, within five working days of the signing of the agreement. The remaining 50 percent should be paid within five working days of completion and confirmation of the work to be performed.

Prosper Wealth allegedly has failed to make any payments and a late fee of $51,120 has accrued as of May 16, 2017.

Under the creative design agreement Prosper shall allegedly pay Hyperdrive $30,000 for KUNLOO sales manual creative design, management, and service fees.

The creative design agreement required that Prosper Wealth should pay 50 percent of the contract fee, or $15,000, within five working days after the signing of the agreement. The remaining 50 percent should be paid within five working days of completion and confirmation of the work to be performed.

Prosper Wealth has allegedly failed to make any payments and a late fee of $18,270 has accrued as of May 16, 2017.

Under the manual agreement, Prosper shall allegedly pay Hyperdrive $20,350 for KUNLOO sales manual printing and production, and management and service fees.

The manual agreement required Prosper Wealth to pay 50 percent of the contract fee, or $10,175, within five working days of the signing of the agreement. The remaining 50 percent of the contract fee should be paid within five working days of completion and confirmation of the work to be performed.

Prosper Wealth has allegedly failed to make any payments and a late fee of $12,393 has accrued as of May 16, 2017.

Torres said that Hyperdrive submitted a notice of dispute and demand for compliance with friendly negotiations to Prosper’s registered agent, Dotts.

To date, Torres said, Prosper Wealth has not responded to Hyperdrive’s request and has not made any payments.