Kensington expects favorable resolution of lawsuit

Micronesia Resort Inc., the owner of Kensington Hotel Saipan, is confident that the lawsuit filed by a construction company against it will be resolved in its favor.

MRI, through counsel, said it will actively cooperate in every aspect of the proceeding.

Saipan Hwa Rang Corp., which does business as D. System Construction, is suing MRI for allegedly refusing to pay the full contract price for the renovation of Kensington’s VIP lounge and compensation for construction and consultation services for other projects.

Saipan Hwa Rang Corp. is suing MRI for unjust enrichment and for breach of contract.

In MRI’s answer to the lawsuit, MRI counsels Richard W. Pierce and Daniel T. Guidotti said D. System Construction engaged in behavior designed to defraud a third party in connection with the contract for renovation and construction of Cocomong Camp at Kensington Hotel.

Pierce and Guidotti said D. System’s “unclean hands makes it ineligible for any equitable relief in this proceeding.”

The lawyers said D. System lacks standing to bring court action in connection with the Cocomong Camp contract as it is not a party or a beneficiary of the contract.

Pierce and Guidotti said D. System Construction’s claims in connection with any modifications to the other contract for renovation of a portion of the hotel property are unenforceable because they were not executed in writing signed by both parties.

Pierce and Guidotti said D. System failed to act in accordance with its duty to good faith and fair dealing by failing to respond to MRI’s requests for information relating to payments for the renovation of hotel property contract and the Cocomong Camp contract.

The lawyers said D. System’s claims in connection with any modifications to the renovation of hotel property contract are unenforceable due to their indefinite nature and that there was no agreement between MRI and D. System as to its essential terms.

In the alternative, the lawyers said MRI and D. System reached an accord and satisfaction with respect to the price of any change orders on the scope of work under the renovation of hotel property contract.

Pierce and Guidotti said D. System would be unjustly enriched if the company were to prevail on one or more of its alleged claims in this proceeding.

Pierce and Guidotti said D. System is barred from bringing court action against MRI in connection with the renovation of hotel property contract as D. System previously communicated to MRI that all such related disputes were deemed resolved.

The lawyers said MRI relied on D. System’s statement.

Pierce and Guidotti said MRI admits that it has not paid D. System certain amounts that may be due under the renovation of hotel property contract as a result of a dispute on the actual amounts owed.

Pierce and Guidotti said MRI also admits that D. System performed certain work in the renovation of the hotel but it is denied that MRI refused to pay for work performed.

In its lawsuit, Saipan Hwa, through counsel Mark Scoggins, asked the Superior Court to hold MRI liable to pay the company an unspecified amount of damages, court costs, and attorney’s fees.