Settlement reached in lawsuit vs IPI

One of Imperial Pacific International (CNMI) LLC’s many creditors have settled with the casino investor and has sought dismissal of its suit in the U.S. District Court for the NMI.

IPI and Ping Shun Corp. filed a joint motion last week to ask the district court to dismiss with prejudice Ping Shun’s breach of contract lawsuit against the casino investor.

Prior to filing the motion for dismissal, on Nov. 5, Ping Shun and IPI entered into a settlement agreement and jointly requested that the court issue an order directing the release of $220,000 from the appeal bond that IPI had previously posted in this lawsuit.

U.S. District Court for the NMI Chief Judge Ramona V. Manglona granted the request last Nov. 9.

Ping Shun, through attorney Samuel Mok, stated that his client has received full and complete payment of all amounts required pursuant to the settlement agreement. 

Ping Shun said it has received $220,000 from the supersedeas or appeal bond on Nov. 23.

IPI, represented by attorney Kevin Abikoff, and Ping Shun are requesting the District Court for the NMI to have the terms and conditions of their settlement agreement incorporated in the stipulated motion and for the court to retain jurisdiction to enforce the provisions of the settlement agreement.

According to court documents, Ping Shun sued IPI for breach of contract back in June 2020. Reportedly, Ping Shun provided breakfast, lunch, and dinner at IPI’s request for thousands of individuals involved in the construction of its hotel-casino project in Garapan as well as IPI’s own employees and VIP guests from Dec. 21, 2016, to Dec. 31, 2019. IPI failed to fully pay for these services. 

Ping Shun also alleged a breach of residential lease agreement related to the housing for some of IPI’s employees.

“IPI failed to pay for damages related to furniture and appliances that were damaged and/or unlawfully taken from the premises prior to the end of the lease term,” the lawsuit stated.

IPI also failed to pay for spa services provided to its executives and VIP guests.  

Ping Shun asked the court to issue an order directing IPI to pay its outstanding balance in the amount of $462,003.64.  

On March 15, 2021, the court issued a decision granting summary judgment in favor of Ping Shun.

On April 6, 2021, the court entered a judgment in favor of the plaintiff against IPI in the amount of $443,900.50 with post-judgment interest.

On Jan. 20, 2022, Ping Shun and IPI asked the court to stay enforcement, with IPI agreeing to secure an appeal bond of $445,000 to secure judgment.

On July 21, 2022, the Court of Appeals for the Ninth Circuit issued a ruling vacating the federal court’s judgment and remanding the matter to the same court for further findings. 

On Sept. 29, 2022, Manglona issued an order granting partial summary judgment in favor of Ping Shun in the amount of $264,484.25, but denied without prejudice summary judgment with respect to the remaining amounts in the dispute.

On Nov. 5, 2022, the parties entered into a settlement agreement to resolve their dispute.