IPI hires O’Connor law firm in contractor’s suit, lien

Imperial Pacific International (CNMI) LLC has hired the law firm of O’Connor Berman Horey & Banes as its counsel in a lawsuit filed against IPI by its former contractor, Pacific Rim Land Development LLC.

David G. Banes of the O’Connor law office informed the U.S. District Court for the NMI Tuesday of the firm’s appearance as counsel for IPI in the Pacific Rim lawsuit.

Banes asked the court to move to a later date the probable cause hearing that is currently set for Dec. 20, 2019, to give the law firm more time to prepare and be briefed on the issues and to set a simultaneous briefing schedule.

Banes said he met with IPI last Friday about the consolidated Pacific Rim lawsuit and application for mechanic’s lien. He said the meeting was an emergency because IPI’s general counsel, Phillip J. Tydingco, had resigned and his last day of employment was on that same day, Friday.

Banes said Tydingco’s replacement, Joey Patrick San Nicolas, has reconsidered his appointment at the last minute last Thursday.

Banes said he and IPI agreed to the terms of representation, but he was not formerly retained until the afternoon of Monday, Dec. 16.

The lawyer said this case involves many complicated issues of first impression under CNMI law that require extensive research and preparation.

He said IPI is mindful that a goal of the CNMI’s mechanic lien statute is to provide expedited resolution.

But Banes pointed out that, first of all, Pacific Rim has an enforceable remedy already: the promissory note between the parties.

He said IPI is not seeking to delay the case; rather, its general counsel, Tydingco, who was handling this matter, suddenly resigned and he only gave two weeks’ notice.

Banes said IPI acted promptly to find a replacement as its general counsel and hired San Nicolas as its new general counsel last Dec. 9. San Nicolas, however, reconsidered and, by last Thursday, no longer agreed to replace Tydingco.

Last Dec. 9, Chief Judge Ramona V. Manglona ordered the consolidation of Pacific Rim’s lawsuit and an application for a mechanic’s lien.

Pacific Rim, through counsel Colin M. Thompson, filed the lawsuit against IPI last Sept. 20 for alleged breach of contract. Pacific Rim subsequently filed an application for a mechanic’s lien on IPI’s hotel-casino project and on the land that it sits on.

A mechanic’s lien refers to a security interest in the title to property for the benefit of those who have supplied labor or materials that improve the property.

Last Dec. 3, Manglona dismissed the lawsuit for lack of jurisdiction but allowed the contractor to amend its complaint. Manglona also denied Pacific Rim’s application for a mechanic’s lien, but allowed the contractor to amend it.

Pacific Rim filed its amended complaint and an amended application for a mechanic’s lien last Dec. 4. That same day, the company filed an application for a mechanic’s lien against IPI in a new proceeding.

Pacific Rim originally sued IPI and five unnamed alleged co-conspirators for breach of contract (construction and promissory note), and unjust enrichment.

Pacific Rim claimed to have substantially completed or completed the agreed-upon construction work for IPI’s casino-resort project on Sept. 30, 2018.

Thompson said IPI owes the contractor $5.65 million.