IPI sues CCC and CNMI governor

The lawsuit seeks the restitution for all regulatory fees.

Northern Mariana Islands.- Imperial Pacific International (IPI) has taken legal action against the islands’ governor,  Arnold I. Palacios, and the Commonwealth Casino Commission (CCC) in both their official and personal capacities. 

In an amended complaint filed in federal court, the company, represented by attorneys Stephen Nutting and Micheal Chen, seeks a jury trial. The lawsuit claims unconstitutional impairment of contract, violation of the contract clause of the US and CNMI constitutions, violation of the takings clause of the US Constitution, violation of the due process clauses of the US and CNMI Constitutions and breach of the casino licence agreement (CLA).

According to Mariana’s Variety, IPI has requested an injunction to prevent the enforcement of the regulatory fee statute and collection of the annual regulatory fee. The company wants the court to declare the regulatory fee statute as unconstitutional and has requested the court order the CCC to return all regulatory fees paid in the past and to nullify any adverse administrative decisions.

The lawsuit argues that the imposition of the annual regulatory fees statute constitutes a substantial and unconstitutional impairment of the CLA.

The CCC rejects the claims

Assistant attorney general Keisha Blaise, who represents the CCC, has filed a 24-page motion to dismiss the lawsuit. Blaise said the court cannot hear IPI’s claims because they were already settled in a previous case. She said IPI failed to properly serve the defendant and that its claims are untimely and barred by the statute of limitations. Blaise also said the CCC cannot sue or be sued.

A week ago, the U.S. Supreme Court denied IPI’s request for a writ of certiorari to appeal the Ninth Circuit’s decision, which allowed the CCC to move forward with the revocation hearing of the company’s casino licence that will be held on January 31 at 9 a.m.

The CCC claims IPI owes the CNMI over US$62m in licence fees and more than US$17.6m in regulatory fees for the years 2020 through 2023: US$79.6m in total.