Manglona hears mechanic’s lien application vs IPI

U.S. District Court for the NMI Chief Judge Ramona V. Manglona heard yesterday whether there is probable cause in an application for a mechanic’s lien filed by a former contractor of Imperial Pacific International (CNMI) LLC in IPI’s hotel-casino in Garapan.

A mechanic’s lien refers to a security interest in the title to property for the benefit of those who have supplied labor or materials that improve the property.

Yesterday’s hearing will be continued on March 20 at 3:30pm, in response to IPI’s request to continue the hearing. IPI was represented yesterday by Joseph Horey.

The plaintiff in the case, U.S.A. Fanter Corp., presented two witnesses: general consultant Antonio Muña and company owner Guo Cao Qian.

According to the minutes of the hearing, Horey argued IPI’s objection to the application for a mechanic’s lien. U.S.A. Fanter counsel Colin M. Thompson argued for U.S.A. Fanter.

U.S.A. Fanter is suing IPI for breach of construction contract and unjust enrichment allegedly refusing to pay $2,089,345 over landscaping improvements for IPI’s hotel-casino project.

U.S.A. Fanter asked the court to hold IPI liable to pay $2.08 million in contract damages. The company also sought payment for interest and attorney’s fees.

The plaintiff asked the court to attach a mechanic’s lien to IPI’s interests in the real property on the project.

IPI, through counsel, asked the court to dismiss the complaint or, in the alternative, suspend the proceedings pending mediation.

IPI argued that U.S.A. Fanter has not complied with the mandatory mediation clause. IPI said it is undisputed that the parties have not mediated the plaintiff’s claims and IPI never informed the company that it would refuse to a mediation.

U.S.A. Fanter and IPI executed a contract for construction on the project on June 18, 2019.

Thompson said the contractor repeatedly demanded that IPI pay all amounts due and owing for work performed, but IPI failed to pay.

Thompson said that last Dec. 29, U.S.A. Fanter demanded to mediate their claims, but IPI refused.

Pacific Rim Land Development LLC also filed an application for a mechanic’s lien on IPI’s hotel-casino project and on the land that it sits on.

Pacific Rim, through Thompson, is suing IPI and five unnamed alleged co-conspirators for breach of contract. 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 that would be proven at trial.

The court then consolidated Pacific Rim’s lawsuit and its application for a mechanic’s lien.