MAGIC International Corporation has filed a civil lawsuit against AC Pacific LLC, doing business as I Love Saipan, in the CNMI Superior Court, alleging breach of two long-term commercial lease agreements.
Through its attorney, Victorino DLG Torres, Magic is suing AC Pacific for breach of contract (2014 and 2016 leases), fraud, and negligent misrepresentation.
The plaintiff seeks compensatory and punitive damages for unpaid rent, late fees, and other financial losses. Magic is also asking the court to issue a judicial declaration affirming that AC Pacific was not constructively evicted and that the lease agreements remained valid and enforceable at the time of default.
According to the complaint, Magic — a CNMI corporation specializing in leasing commercial real estate — entered into two separate 20-year lease agreements with AC Pacific, a retail gift shop operator, for spaces in the May Ten II Building in downtown Garapan.
The leases, signed in 2014 and 2016, included provisions for escalating rent payments and required AC Pacific to maintain liability and property insurance.
In the lawsuit, Magic claims that AC Pacific has repeatedly defaulted on rent payments since January 2024, despite numerous follow-ups and partial payments. AC Pacific also allegedly requested rent discounts and extensions due to economic hardship, but later informed Magic of its intention to vacate the premises before the lease terms expired.
In December 2024, AC Pacific purportedly terminated both leases, citing constructive eviction due to unsafe building conditions, including structural damage, water leaks, mold, and falling debris.
Magic disputes these claims, asserting that it addressed maintenance concerns and that AC Pacific continued to operate its business at the premises for months after raising those issues.
As part of its fraud allegations, Magic states in the complaint:
“AC Pacific did not previously notify Magic that these alleged conditions would serve as grounds for constructive eviction, nor did it vacate or cease operations during the period of alleged uninhabitability. These facts contradict the claim that the property was rendered unfit for use.”
Variety was unable to obtain comment from AC Pacific as of press time.
