The commonwealth is represented by the law offices of Matthew T. Gregory and William R. Satterberg Jr.
Named in the 16-page complaint were AIC Marianas Inc., Saipan Ice and Water Co. Inc. and Severn Trent Water Technologies (Shanghai) Co. Ltd.
Variety was told by the defendants’ staffers that none of their officers were available for comment.
The CNMI government sued the defendants for breach of contract, violation of the Consumer Protection Act, fraud, fraud in the inducement, intentional misrepresentation, knowing misrepresentation, reckless misrepresentation, negligent misrepresentation, negligent supervision as to Saipan Ice and Severn Trent, and negligence.
The CNMI government is demanding a jury trial.
For compensatory and punitive damages the commonwealth is asking an excess of $1 million or “an amount to be proven more specifically at the trial,” as well as “treble damages at law where legally allowable,” plus costs and attorneys fees, and such other relief.
On June 24, 2002, the complaint stated that AICM entered into a contract with the CNMI government, and became the general contractor for the CHC construction project “to provide a water purification system which complied with all appropriate hospital and Association for Advancement of Medical Instrumentation standards.”
In the process, the complaint said AICM entered into a contractual agreement with Saipan Ice “to acquire and install a suitable and AAMI-complaint [reverse osmosis, or RO] system.”
The complaint said Saipan Ice “entered into a purchase agreement with…Severn Trent to buy a RO system that would meet the required water purification standards.”
In 2006, Severn Trent’s employee/agent Jesse Wu specifically represented that the RO system “met all applicable AAMI standards, including the 510K Certification requirements set forth by the AAMI.”
Wu also provided a copy of July 29, 2002 letter written under his authority and Severn Trent stationery, “confirming that the [RO] system did, in fact, comply with all appropriate 510K Certification requirements.”
On June 11, 2009, Severn Trent, “by and through its counsel,” advised the CNMI government that the 2002 letter “was a forgery and that the [RO] system did not, in fact, ever meet 510K Certification requirements.”
