KAN Pacific Saipan or KPS has filed a breach of contract lawsuit in federal court and named Imperial Pacific International LLC and several unnamed individuals as defendants.
Attorney Joseph Iacopino, who represents KPS, said his client and IPI signed an agreement on or about May 9, 2016.
“Subsequent to substantial negotiations, the subject written agreement was entered into between KPS and IPI to incentivize and compensate KPS for the closure of KPS’s business operations prior to the termination of its lease agreement, and to resolve such disputes and potential causes of action, avert the potential of such an adverse judgment, avoid the need to incur attorney fees, costs, expenditure of valuable time and resources and other adverse consequences and for other good and valuable consideration,” the lawsuit stated.
KPS used to operate Mariana Resort & Spa, a property that IPI wanted to lease.
Under the two companies’ agreement, Iacopino said 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.
The lawyer said KPS refrained from pursuing legal action against IPI and others.
He said IPI made the first three annual payments that were 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,” the lawsuit stated.
“KPS thereafter sent to IPI more than 10 days’ notice of such default, and IPI has nevertheless continued to refrain from tendering any portion of such payment or any other amount that has become due and owing thereafter, including the annual payment that became due and owing on June 1, 2021,” according to the lawsuit.
“In the event of a breach of agreement, and/or if any legal action is taken to enforce any provision of said agreement, the prevailing party in any action to enforce any obligation pursuant to said agreement shall be entitled to a recovery of costs and reasonable attorney’s fees,” the lawsuit stated.
KPS, which is demanding a jury trial, is also asking the court to rule in favor of KPS and issue a judgment against the defendants.
Moreover, KPS is seeking an award of damages as well as attorney’s fees and costs.
