‘Ruling is a victory for entire NMI’

The Commonwealth Casino Commission board calls it as “a victory for the entire CNMI.”

The commission welcomed yesterday the U.S. Court of Appeals for the Ninth Circuit’s decision reversing the U.S. District Court for the NMI’s order compelling the CCC to subject to its complaints against Imperial Pacific International (CNMI) LLC to arbitration, describing it as a “tremendous triumph” for the CCC.

Assistant attorney general Keisha Blaise, who is counsel for the CCC, told the CCC commissioners at yesterday’s monthly meeting that the Ninth Circuit’s ruling basically means that the CCC may now resume its hearing to revoke IPI’s exclusive casino license and proceed with the revocation hearing.

CCC board chair Edward C. DeLeon Guerrero said the Ninth Circuit’s decision strengthens the commission’s authority in enforcing the Commonwealth’s casino gaming regulations.

Blaise told the board that she received a notification from the Ninth Circuit that morning (yesterday) that it has reversed the U.S. District Court’s decision in the IPI matter and remanded the case back to the U.S. District Court.

Blaise said the Ninth Circuit agreed with CCC that arbitration wasn’t required and that the decision on the license’s revocation/suspension should be submitted to the commission.

“We can talk about strategy or whatever we might do, but eventually it’s going to be back in front of the commission,” Blaise said.

She said they can discuss the CCC’s strategy or next steps in a closed-door session. Because DeLeon Guerrero has recused himself from the five CCC complaints against IPI, they can talk about how that would work, Blaise added.

Commonwealth Casino Commission board vice chair Rafael S. Demapan, third from left, presides over the monthly CCC board meeting yesterday at the Springs Plaza in Gualo Rai. Also in the photo is CCC legal counsel assistant attorney general Keisha Blaise. (FERDIE DE LA TORRE)

“So that’s good news. We won!” said Blaise, who received applause from four commissioners who were physically present at the meeting. DeLeon Guerrero, who is off-island, joined the meeting online.

The commissioners praised Blaise and assistant attorney general Alison Nelson, who is the chief of the Office of the Attorney General’s Civil Division, “for a job well done.”

DeLeon Guerrero said it’s a tremendous victory for the CCC as it strengthens the commission when it comes to using its authority to revoke licenses for violations of gaming regulations.

DeLeon Guerrero said he has recused from the case because he previously functioned as the CCC executive director to prosecute the case.

Commissioner Ramon M. Dela Cruz said he knew from the beginning that the commission, through its legal and fiduciary responsibility, will prevail.

Dela Cruz said this is a major victory for the entire Commonwealth and not just for the commission. “That will show everybody who has been very critical of our operation that we do indeed know what we’re doing,” he added.

Commissioner Mariano Taitano shared the sentiments of the other commissioners. “I can’t wait for [DeLeon Guerrero] to return to Saipan so that we can share that champagne,” he said.

Commissioner Martin T. Mendiola said their legal counsels have been diligently working for the commissioners, but the results have been greater than just the commission. Mendiola said the real impact is to the entire Commonwealth in terms of the commission’s function as the regulator of the casino industry.

Vice chair Rafael S. Demapan said this is just one case that has been rendered as there are other cases that are still pending.

The CCC appealed to the Ninth Circuit the August 2022 decision of U.S. District Court for the NMI Chief Judge Ramona V. Manglona that granted IPI’s request for a preliminary injunction and a motion to compel arbitration. The CCC asked the Ninth Circuit to review and reverse Manglona’s decision.

The preliminary injunction granted by Manglona prohibited CCC from revoking IPI’s exclusive casino license while the casino investor pursues its right to arbitration.

Arbitration is a procedure wherein two parties agree on one or more arbitrators to decide on their dispute in order to resolve a disagreement outside of court proceedings. The three-day arbitration hearing in Honolulu, Hawaii was completed last month, but arbitrator Thomas J. Brewer has yet to issue a decision as of yesterday.