Pacific International Property Management LLC invested $5.59 million
to secure a stay and pay on a court’s judgment regarding a contractor’s lawsuit against Imperial Pacific International LLC, parent company of the IP Casino in Saipan. IPI’s Hong Kong owner was not willing to come up with the funds and Commonwealth Casino Commission Board Chair Edward Deleon Guerrero wants to know why. He asked IPI Chief Executive Officer Donald Browne, “Why would a third party put its own resources when the parent company of IPI is not willing to do the same?”
In response, Browne said the money is a loan or a pledge. “We’re not using it for anything. It’s just sitting in an account. It’s not our money. The money pledged on our behalf would help our operation now. Is there just going to be $50 million that jumps into the account? I would highly doubt that,” Browne said. He added an IPI lawyer will show CCC any documents that have been submitted in court about the agreement between IPI and PIPM.
As a result of PIPM’s security deposit, U.S. District Court for the Northern Mariana Islands Chief Judge Ramona V. Manglona recently denied a request from IPI’s former contractor, Pacific Rim Land Development LLC, to auction IPI’s assets to satisfy the court’s $5.52 million judgment. Pacific Rim is suing IPI and five other alleged co-conspirators for breach of contract and unjust enrichment.
Pacific Rim claims it mostly or completely finished the agreed-upon construction work at the casino on September 30, 2018. But IPI then countersued Pacific Rim for promissory fraud, unjust enrichment and breach of contract. IPI Counsel George Hasselback alleged, among other issues, the unworkmanlike performance of Pacific Rim caused delays and as a result IPI lost approximately $89.3 million in casino revenue.
In April, Manglona ruled in favor of Pacific Rim for $5.65 million against IPI for breaching the promissory note. Later an amended judgment totaled $6.9 million plus post-judgment interest.
Meanwhile, IPI officials said construction of IPI’s hotel-casino in Garapan may resume soon. IPI Senior Vice President for Media and Public Affairs Tao Xing said IPI submitted required documents to the Department of Public Works. Construction activities ceased on October 27 when the department declared the IPI project was in violation of building safety codes.
IPI has additional problems such as further delaying its payroll. Browne said the delays are due to “funding challenges. He told employees, “We sincerely apologize for the inconvenience this causes you.” Rep. Tina Sablan stated, “IPI has repeatedly violated local and federal labor laws, employment contracts and the casino commission’s order to reserve funds for payroll and avoid continuing delays. This is completely unacceptable.”
She added, “I feel for the employees of IPI who have endured these payroll delays and payless paydays for months now. I feel for the former employees who have also been waiting for termination pay, repatriation tickets and other benefits owed for months. I feel for all the workers from previous years who are still owed wages and compensation for work they have done and injuries they have suffered.”
Sablan urged current and former employees to register their complaints with the U.S. Department of Labor, the CNMI Department of Labor and the Commonwealth Casino Commission. “People need help. The government must intervene,” she said.
