By Bryan Manabat
Saipan (Marianas Variety)-- Imperial Pacific International LLC is opposing Kan Pacific Saipan’s application for a writ of execution on IPI’s personal property.
On Dec. 2, 2022, the federal court entered a judgment in favor of KPS in the amount of $697,801.30 plus post-judgment interest against IPI.
On Aug. 26, 2023, KPS applied for a writ of execution pertaining to IPI’s vehicles, liquor, crystal dragons, computer hardware, furniture and equipment, casino and security equipment.
KPS also requested the court to order IPI to maintain any required registrations and insurance for all of the assets, and any other personal property, and maintain these items in good condition.
KPS likewise asked the court to order IPI to store each seized item in its current location.
In a footnote, KPS acknowledged that there were writs of execution issued earlier against IPI for the same assets sought by KPS.
KPS requested priority as to any unsold vehicles or funds after the satisfaction of the earlier writs.
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In its opposition, IPI, represented by attorney Michael Chen, said KPS
“provided no legal authority to support its request for IPI to maintain registrations and insurance of the assets, as well as the maintenance in good condition of the assets, in its application for the writ of execution.”
IPI, as a limited liability company, is liable to its creditors, including judgment creditors, such as the plaintiff in this action, to the extent of its assets, Chen said.
“IPI has no liquid assets within its control to cover the costs of maintaining registrations and insurance of the assets identified by plaintiff, as well as the cost of maintaining these items in good condition,” the attorney added.
“Moreover, the same assets sought by plaintiff are also the collaterals of secured transactions where senior lien holders may have priority over the judgment claims made by plaintiff,” Chen said.
“IPI has recently notified the senior lien holders of the writs issued as well as the pending application for writ by plaintiff in this action. IPI was informed by the senior lien holders that they intend to intervene to vindicate their rights,” he added.
In response, KPS attorney Joseph Iacopino stated: “Plaintiff hereby rescinds its request for the Court to order IPI to maintain any required registrations and insurance for all of the assets and properties identified in its application for writ of execution.”
The District Court for the NMI has scheduled a hearing for Sept. 19 at 9 a.m.
The case is about a breach of a written agreement that KPS and IPI signed in May 2016.
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KPS used to operate Mariana Resort & Spa, a property that IPI wanted to lease.
As a material part of the consideration for entering into the agreement, IPI became contractually and legally bound and obligated to pay KPS the sum of $5 million, which was to be satisfied by making 25 annual payments to KPS in the amount of $200,000 on June 1 of each calendar year, commencing on June 1, 2017.
IPI made the first three annual payments due in June 2017, June 2018, and June 2019. However, IPI failed and refused to tender any portion of the amount that became due and owing on June 1, 2020, even after KPS sent to IPI the 10-day notice of such default pursuant to the agreement, KPS’ lawsuit stated.
KPS then filed a civil action against IPI in the District Court for the NMI.
In Dec. 2022, the federal court granted KPS’ motion for summary judgment and entered a judgment in favor of KPS against IPI in the amount of $697,801.30 plus post-judgment interest under the federal rate of 4.76 percent per annum.
According to KPS, the judgment remains unpaid.
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