Pacific Rim objects to decision to submit certified questions

Pacific Rim Development Land Development, LLC filed its certified question proposal last week but it did so while maintaining its objection to submitting certified questions to the NMI Supreme Court.

Pacific Rim, through counsel Colin Thompson, said that, although Pacific Rim maintains its objection to the submission of certified questions, it proposes two questions on top of the U.S. District Court for the NMI’s proposed questions.

The first certified question Thompson proposed was whether a notice of completion is valid if not filed with the Superior Court.

The second certified question was whether a notice of completion is ineffective for any purpose if delivery of the notice was made prior to substantial completion of the improvement, delivery of the materials, or the improvement has been actually abandoned.

Last Feb. 5, U.S. District Court for the NMI Chief Judge Ramona V. Manglona said that a certified question is necessary because of the difference between the state court and the CNMI’s interpretation of state law matters, specifically the interpretation the CNMI’s mechanic lien statute.

One of the questions Manglona proposes to submit to the NMI Supreme Court was whether the date of completion of a project refers to the date of completion of the entire project or the date of completion of the contracted work by a particular contractor.

The second proposed certified question was whether the notice of mutual termination constitutes a valid notice of completion, where the parties agreed that the contractor began its work and completed portions of the project and the owner agrees the contractor’s obligation to the performed work under the construction contract are complete.

According to Saipan Tribune archives, Pacific Rim filed an application for a mechanic’s lien on IPI’s hotel-casino project and on the land that it sits on.

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.

Pacific Rim is suing IPI and five unnamed alleged co-conspirators for breach of contract (construction and promissory note), and unjust enrichment.

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.