IMPERIAL Pacific International LLC is opposing Clear Management Ltd.’s request to the federal court to issue an order authorizing and directing payment of $27,435.93 for expenses incurred by the receiver from April 1 to 30, 2023.
IPI, through attorney Samuel Salyer, informed the District Court for the NMI that “in the course of performing activities onsite at the casino resort, Receiver’s agents or parties acting under the receiver’s clear direction and/or supervision caused significant damage to the tile flooring of the casino resort.”
Clear Management “caused this damage by operating or allowing the operation of a forklift inside the casino resort without following proper safety protocol, such as laying floor mats before operating heavy machinery on the casino resort’s tile floor,” Salyer added.
“Notwithstanding its court-ordered responsibility for the custody, auction, and transportation of IPI’s gaming equipment and its court-ordered access to the casino resort site, Clear Management has denied responsibility for the damage caused to the casino floor,” Salyer said.
On Oct. 26, 2021, Chief Judge Ramona V. Manglona appointed Clear Management as receiver for the purpose of selling IPI’s gaming equipment to satisfy a judgment awarded to USA Fanter Corporation Ltd.
USA Fanter sued IPI for its failure to pay the full amount due to the plaintiff under a construction contract for labor and materials provided for the improvement of IPI’s real property in Garapan.
The lawsuit stated that IPI had paid USA Fanter $300,000 only and the unpaid balance due was not less than $2,089,345.28.
The judge issued a final judgment in favor of USA Fanter.
‘Cash is fungible’
In its motion, IPI stated that while it does not have an objection to the specific expenses claimed by Clear Management in its recent motion, it does object to Clear Management’s receipt and removal of funds from the CNMI while it denies responsibility for the damage it caused to the casino resort.
Salyer added, “Cash is fungible, and it is not apparent that Clear Management holds any other assets in the CNMI; if IPI is forced to bring a claim against Clear Management. it could be left unable to collect on its judgment. IPI proposes instead that the amounts claimed by Clear Management in this reimbursement motion (as well as future motions for expenses or fees) be segregated and held in escrow until IPI’s claim is resolved.”
Clear Management, through attorney Michael White, filed a motion for reimbursement on May 17.
Salyer said he had communicated in writing IPI’s potential objection to Clear Management, and that the parties met and conferred on May 29 but were unable to resolve the matter.
Salyer requested the court to approve the receiver’s motion for reimbursement while requiring that the funds will be held in escrow pending resolution of IPI’s claim for damages against Clear Management.
A hearing motion has been scheduled for today, Wednesday, May 31 at 8:30 a.m.
