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Kan Pacific, IPI settlement talks fail
Kan Pacific Saipan Ltd., and Imperial Pacific International (CNMI) LLC have failed to reach a settlement so the U.S. District Court for the NMI has ordered for the parties to move forward with discovery.
During a telephone status conference yesterday, Magistrate Judge Heather L. Kennedy was informed by both parties that no settlement has been reached and she ordered both parties to proceed with the next step leading to trial, discovery.
“Parties updated the court on status of settlement. No settlement was reached. Parties will proceed with discovery,” she said.
According to an online definition, discovery is the exchange of information between two parties before a trial is set. Discovery is when one party provides the opposing party information about its witness and evidence that may be brought up in trial to help the opposite party prepare their arguments.
During the hearing, Joseph Iacopino represented Kan Pacific Saipan while Joey San Nicolas appeared with Tao Xing for IPI.
In this case, Kan Pacific is suing IPI for breach of a written agreement signed by both parties back in May 2016 relating to the lease of the Mariana Resort property.
Iacopino said that prior to entering into the agreement, several disputes and potential causes of action developed between plaintiff and IPI that exposed each party to the potential for an adverse judgment, attorney’s fees, costs, expenditure of time and resources and other adverse consequences.
As a material part of the consideration for entering into the agreement, Iacopino said, IPI became contractually and legally bound and obligated to pay Kan Pacific the sum of $5 million, which was to be satisfied by making 25 annual payments to Kan Pacific in the amount of $200,000 on June 1 of each calendar year commencing on June 1, 2017.
IPI made the first three annual payments in June 2017, June 2018, and June 2019. However, IPI allegedly failed and refused to tender any portion of the amount that became due and owing on June 1, 2020.
Kan Pacific claims they sent IPI more than 10 days’ notice of such default, and IPI has refused to pay, including the annual payment that became due and owing on June 1, 2021.
