IPI opposes receiver’s request for reimbursement of expenses

Imperial Pacific International (CNMI) LLC is opposing Clear Management Ltd.’s request to be reimbursed for expenses incurred as the court-appointed receiver and is accusing Clear Management of causing damage to the casino while carrying out its duties, and that it has not taken responsibility for the damage it caused.

IPI, through attorney Samuel Slayer, has opposed Clear Management’s request for reimbursement of expenses incurred while carrying out its duties as the court-appointed receiver in the ongoing receivership authorized by the U.S. District Court for the NMI.

Clear Management had asked the court that it be paid $27,435.93 for expenses incurred from April 1 to April 30.

However, IPI claims that in the course of performing activities onsite at the Imperial Pacific Resort pursuant the court-ordered receivership, Clear Management’s agents or parties acting under its direction and/or supervision caused significant damage to the tile flooring of the casino.

Clear Management allegedly caused this damage by operating or allowing the operation of a forklift inside the IPR casino without following proper safety protocol such as laying floor mats before operating heavy machinery on IPR’s tile floor.

“Notwithstanding its court-ordered responsibility for the custody, auction, and transportation of IPI’s gaming equipment and its court-ordered access to the IPR site, Clear [Management] has denied responsibility for the damage caused to the casino floor. While IPI does not have an objection to the specific expenses claimed by Clear [Management] in its recent motion, it does object to Clear [Management]’s receipt and removal of funds from the CNMI while it denies responsibility for the damage caused to the IPR,” said Slayer.

Instead of a full reimbursement, IPI is proposing that the court segregate the full amount Clear Management has requested and hold it in an escrow account until IPI’s claims are resolved.

“Cash is fungible and it is not apparent that Clear [Management] holds any other assets in the CNMI; if IPI is forced to bring a claim against Clear [Management], it could be left unable to collect on its judgment. IPI proposes instead that the amounts claimed by Clear [Management] in this reimbursement motion (as well as future motions for expenses or fees) be segregated and held in escrow until IPI’s claim is resolved,” said Slayer.

“IPI respectfully requests that the court issue an order awarding Clear [Management] $27,435.93 as reimbursement for the expenses claimed in its motion, but requiring that the funds be held in escrow pending resolution of IPI’s claim for damages against Clear,” the attorney added.

There was no immediate response from Clear Management about this motion.