IPI’s $2.4M bond released to USA Fanter

Now that the U.S. Court of Appeals has ruled on the appeal filed by Imperial Pacific International (CNMI) LLC in the lawsuit filed by US. Fanter Corp. Ltd., the U.S. District Court for the NMI has ordered the release of the $2.4 million supersedeas bond that IPI had posted pending its appeal.

District Court for the NMI Chief Judge Ramona Manglona issued the order last week releasing the $2.4 million to USA Fanter pursuant to a previous stipulation, or agreement, made by the parties.

The agreement, which the parties made back in 2021, was that, pending IPI’s appeal of the court’s decision in the lawsuit filed by USA Fanter, IPI would post a $2.4 million supersedeas bond to stay the judgment that ruled in favor of USA Fanter and the limited receivership that has now been assumed by other IPI creditors.

Now that the appellate court has reaffirmed the District Court for the NMI’s ruling, the agreement states that the bond must be released to a trust account under Thompson Law LLC, the law office that represents USA Fanter.

“Based on the stipulation of the parties, the record, and for good cause shown, the court orders Suretec Insurance Company transfer the entire amount of the supersedeas bond of $2,450,000 to the Thompson Law, LLC client trust account immediately, to be held in trust subject to further orders of this court,” said Manglona.

“Upon receipt of the supersedeas bond funds, Thompson Law is ordered to promptly transfer to USA Fanter, the judgment amount of $2,089,345.28,” she added.

Back in February 2021, the court issued a partial summary judgment in favor of USA Fanter. On Feb. 12, 2021, the court entered a judgment in favor of USA Fanter in the amount of $2,089,345.28. On April 29, 2021, the parties stipulated to $109,060.28 in prejudgment interest.

Following the court’s order, IPI appealed the decision to the Court of Appeals for the Ninth Circuit.

On Dec. 8, 2021, USA Fanter and IPI filed a stipulation regarding a motion to stay judgment pending appeal, through which IPI agreed to secure a supersedeas bond of $2.45 million as surety for the judgment.

On Dec. 13, 2021, IPI provided a notice that supersedeas bond, constituting the full agreed amount was in place.

On Dec. 17, 2021, IPI filed a notice of amendment of supersedeas bond and the supersedeas stay bond.

Last November, the Ninth Circuit affirmed this court’s judgment and issued its mandate on Nov. 23, 2022.

USA Fanter had sued IPI for breach of contract after the casino investor allegedly failed to pay the full contract amount due for labor and materials it provided for the improvement of the IPI Casino in Garapan. The lawsuit was filed in February 2021. USA Fanter claimed that IPI only paid USA Fanter $300,000 for the project and the unpaid balance due was not less than $2,089,345.28.