Manglona enters $5.65M judgment in favor of contractor, vs IPI

U.S. District Court for the NMI Chief Judge Ramona V. Manglona has entered a judgment in the principal amount of $5.65 million in favor of a former contractor of the Imperial Pacific International (CNMI) LLC and against IPI for breach of contract.

In a written order last Thursday, Manglona finds there is no just reason for a delay in the entry of judgment on Pacific Rim Land Development LLC’s claim for breach of contract on the promissory note.

The judge granted Pacific Rim’s attorneys’ fees and costs associated with this claim, as well as prejudgment interest, saying that Pacific Rim is entitled to the amount. Pacific Rim was ordered to submit a proposal regarding interest calculation and attorneys’ fees by April 16, 2020.

Manglona directed the clerk to enter judgment in favor of Pacific Rim the amount of $5.65 million, plus attorneys’ fees, costs and interest to be determined.

Manglona said Pacific Rim submitted evidence that the promissory note exists in the form of the note itself and a sworn declaration from Pacific Rim’s owner, Keith Stewart, attesting to facts regarding the negotiation and execution of the note.

The judge noted that the promissory note submitted by Pacific Rim is the same document that IPI filed with its opposition to the lien application. Manglona said that IPI admitted that it executed the promissory note.

As to the breach of the note and damages, Stewart attests that IPI failed to make payments under the note and only paid $5,650,000 of the total $11,300,000 due. Stewart said the promissory note required full payment by June 15, 2019. Pacific Rim also provided a spreadsheet of payments received from IPI on the note.

In response, Manglona said, IPI offered no evidence or affidavits to rebut any of Pacific Rim’s evidence. “IPI has thus failed to meet its burden to establish a genuine issue of material fact,” the judge said.

Pacific Rim, through Colin Thompson, is suing IPI and five unnamed alleged co-conspirators for breach of contract (construction and promissory note), and unjust enrichment, saying it has completed the agreed-upon work on Sept. 30, 2018. Thompson said the unpaid amount that is owed Pacific Rim is $5.65 million but it wants to collect from IPI approximately $10 million in damages. Pacific Rim also filed an application for a mechanic’s lien on IPI’s hotel-casino project and on the land that it sits on.

IPI recently filed counterclaims against Pacific Rim, alleging, through counsel Cong Nie, that Pacific Rim hired a kitchen helper and a delivery man and made them work in IPI’s casino-resort project in Garapan as carpenters.

IPI brought counterclaims against Pacific Rim for promissory fraud, fraud in the inducement as to the promissory note, violation of Consumer Protection Act, and breach of contract.

IPI asked the U.S. District Court for the NMI to issue an order for rescission of IPI’s contract with Pacific Rim and the promissory note.

IPI requested the court to hold Pacific Rim liable to pay damages in an amount to be proven at trial. The company demanded a jury trial.

According to Nie in IPI’s counterclaims, IPI did not discover Pacific Rim’s fraudulent intent prior to April 16, 2018, and therefore, its promissory fraud claim is timely.

Nie said Pacific Rim knowingly made the misrepresentations as to the trade categories of its employees in its monthly invoices.