Imperial Pacific to pay $5.6m for contract breach
Imperial Pacific International has been ordered to pay to its former contractor for breaching a promissory note.
Saipan.- After being sued by former contractor Pacific Rim Land Development LLC, Imperial Pacific International (IPI) has been ordered to pay US$5.6million for breaching a contract.
According to local newspaper Marianas Variety, the District Court for the Northern Mariana Islands had issued a partial judgement relating to the breach and denying a motion by IPI to dismiss Pacific Rim’s lawsuit.
Pacific Rim sued IPI for breach of contract after the Saipan casino operator refused to pay for services, worth US$5.6 million, at the site of IPI’s Imperial Palace‧Saipan.
Works under the agreement were completed on 30 September 2018.
According to IPI’s defense, Pacific Rim had overstated the cost of completing the works: “Pacific Rim fraudulently obtained from IPI a promissory note, which is therefore unenforceable”.
IPI added that Pacific Rim had also failed to comply with a contractual obligation to enter into mediation over the matter before filing any lawsuits.
The court ruling, for US$5.65million, also includes reasonable attorney fees and costs.