CHIEF Judge Ramona V. Manglona of the District Court for the NMI has granted Kan Pacific Saipan’s writ of execution application against Imperial Pacific International.
In a four-page order issued on Oct. 20, Judge Manglona ordered the clerk of court to issue the writ of execution to the U.S. Marshals for the seizure of IPI’s vehicles, liquor, crystal dragons, computer hardware, furniture, equipment, including casino-related and security equipment as well as any and all other personal property of IPI “as further identified in the application for the writ.”
“The clerk shall also provide IPI notice of its rights. Once the U.S. Marshals Service executes the writ of execution, IPI may file, in writing, any exceptions pursuant to 7 CMC § 4210; such filing is due fourteen days after execution of the writ,” the judge added.
The order also noted the separate writs of execution issued to U.S.A. Fanter Corp. Ltd., a judgment creditor of IPI; and Joshua Gray, another judgment creditor over IPI’s personal property.
In its writ of execution application, Kan Pacific, through attorney Joseph Iacopino, acknowledged USA Fanter and Gray’s writs of execution and thus “seeks priority as to any unsold vehicles or funds still available after Fanter’s and Gray’s judgments are satisfied.”
Iacopino said the “total resale of the items for which [Kan Pacific] seeks a writ of execution are expected to be less than the total value of [Kan Pacific’s] judgment” as “Gray and Fanter’s judgments will account for a large portion of the disbursement of IPI’s property.”
The federal court has concluded that the valuation of the requested property is not excessive given Kan Pacific’s judgment.
On Dec. 2, 2022, the federal court entered a judgment in favor of KPS in the amount of $697,801.30 plus post-judgment interest against IPI.
On Aug. 26, 2023, KPS applied for a writ of execution pertaining to IPI’s vehicles, liquor, crystal dragons, computer hardware, furniture and equipment, casino and security equipment.
KPS also requested the court to order IPI to maintain any required registrations and insurance for all of the assets, and any other personal property, and to maintain these items in good condition.
KPS likewise asked the court to order IPI to store each seized item in its current location.
In a footnote, KPS acknowledged that there were writs of execution issued earlier against IPI for the same assets sought by KPS.
KPS requested priority as to any unsold vehicles or funds after the satisfaction of the earlier writs.
The case pertains to a written agreement that KPS and IPI signed in May 2016.
KPS used to operate Mariana Resort & Spa, a property that IPI wanted to lease.
As a material part of the consideration for entering into the agreement, IPI became contractually and legally bound and obligated to pay KPS the sum of $5 million, which was to be satisfied by making 25 annual payments to KPS in the amount of $200,000 on June 1 of each calendar year, commencing on June 1, 2017.
IPI made the first three annual payments due in June 2017, June 2018, and June 2019. However, IPI failed and refused to tender any portion of the amount that became due and owing on June 1, 2020, even after KPS sent to IPI the 10-day notice of such default pursuant to the agreement, KPS’ lawsuit stated.
KPS then filed a civil action against IPI in the District Court for the NMI.
In December 2022, the federal court granted KPS’ motion for summary judgment and entered a judgment in favor of KPS against IPI in the amount of $697,801.30 plus post-judgment interest under the federal rate of 4.76% per annum.
According to KPS, the judgment remains unpaid.
