PEACE & Order Trading Corporation has filed a lawsuit in federal court against Fairyland Investment LLC, which is owned by Zhi Qi Shen, for breach of construction contract and unjust enrichment.
A contractor, Peace & Order was hired by Fairyland to remodel and build an apartment building on Navy Hill, Saipan, said attorney Colin Thompson who is representing the plaintiff.
Thompson said Peace & Order stopped work on the project because Fairyland refused to pay the amount owed to Peace & Order for work completed under the construction contract.
Thompson said Peace & Order is entitled to damages of no less than $775,701.98 plus interest and attorney’s fees and a mechanic’s lien against the real property occupied by the apartment that Peace & Order renovated and made additional construction.
“Peace & Order endeavored in good faith to resolve this dispute prior to filing this case,” the lawsuit stated, “but Fairyland refused to honor its obligation to Peace & Order.”
Thompson filed the lawsuit on behalf of Peace & Order on Dec. 7, 2020.
According to the lawsuit, on March 31, 2018, Peace & Order and Fairyland executed a written contract for renovation and additional construction.
On Dec. 23, 2019, Peace & Order entered into two additional contracts to renovate the parking lot and fix the fire alarm system in the apartment.
The price for the first contract was $1,305,000 and the amount of the two additional contracts was $195,000, the lawsuit stated.
So far, Thompson said, Fairyland paid a total of $654,298.02 to Peace & Order for the first contract and $70,000 for the two additional contracts.
Thompson said Peace & Order began its work on the project on March 26, 2018.
Thompson said Fairyland acknowledged that as of Dec. 18, 2019, it did not have issues, questions, and/or concerns as to the progress of the work done on the project.
Fairyland acknowledged that Peace & Order completed 75% of the work on the project and that the contractor performed all work pursuant to the contracts in a safe manner, the lawyer added.
The lawsuit stated that Fairyland did not respond to two notices for demand of payment by Peace & Order.
Thompson said despite repeated requests for payment, Fairyland failed and refused to pay Peace & Order the balance due and owing pursuant to the provisions of the contract.
The lawyer said as of Nov. 4, 2020, Fairyland owed $775,701.98 plus interest and attorney’s fees for work performed pursuant to the contracts.
