Engineering firm sues American Sinopan for breach of contract

HENRY K. Pangelinan & Associates, an engineering firm, has sued American Sinopan LCC for breach of contract, and is asking for judgment in the amount of $421,800.

HKPA, through attorney Colin Thompson, filed the lawsuit in federal court against American Sinopan whose sole member was Imperial Pacific Real Estate & Hotel Management Co., a British Virgin Islands corporation.

HKPA is alleging breach of contract, fraudulent inducement, negligent misrepresentation, and quantum meruit.

According to an online legal dictionary, quantum meruit is “a legal action brought to recover compensation for work done and labor performed ‘where no price has been agreed.’ The term…means ‘as much as is deserved.’”

HKPA demands a jury trial and seeks equitable relief, compensatory and punitive damages, attorney’s fees, expert witness fees, taxable court costs, and pre-judgement and post-judgement interest.

According to the complaint, on Dec. 21, 2017, American Sinopan entered into a contract with HKPA to provide civil engineering, design, drawings and related permitting services for a project known as Saipan Garden Resort Development in Tanapag.

On June 6, 2018, American Sinopan entered into another contract with HKPA to provide design and construction services for the Saipan Garden resort and Heaven II Development project.

Thompson said American Sinopan received the original or duplicates of invoices for the services provided by HKPA for services performed pursuant to the contracts.

The prices charged by HKPA pursuant to the contracts were the fair and reasonable market prices that prevailed at the time of the transactions, the attorney added.

He said the prices charged by HKPA pursuant to the contracts were the prices American Sinopan agreed to pay.

According to Thompson, American Sinopan received and accepted the services provided by HKPA “and neither rejected nor revoked its acceptance thereof.”

He added, “During the relevant time periods, HKPA provided services to American Sinopan pursuant to the contracts but American Sinopan has not paid HKPA for its work.”

Thompson said Pan Guohan and Ken Lin, general manager and architect for American Sinopan, made repeated promises, statements, and guarantees to HKPA that it would receive full payment for its work.

Nonetheless, Thompson said, American Sinopan failed and refused to pay HKPA for services and work pursuant to the contracts. The amount owed to HKPA is $421,800 plus interest, he added.

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