FOR failing to pay Kan Pacific Saipan or KPS the annual payment due in the amount of $200,000 pursuant to a written agreement, Imperial Pacific International LLC has been sued in federal court.
Kan Pacific filed a complaint for damages and demanded a jury trial. The plaintiff also included several unnamed individuals as defendants.
According to attorney Joseph Iacopino, who represents KPS, the case is about a breach of a written agreement that had been entered into between KPS and IPI on or about May 9, 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, the lawsuit stated that 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, after KPS sent to IPI the 10-day notice of such default pursuant to the agreement, the lawsuit stated.
KPS then filed a civil action against IPI in the District Court for the Northern Mariana Islands.
The lawsuit was based on IPI’s failure to make the payments due on June 1. 2020, June 1, 2021, and June I, 2022.
In Dec. 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.
Iacopo said as of the date of filing the recent complaint, the judgment remained unpaid by IPI.
According to the latest lawsuit, on June 1, 2023, IPI failed to pay KPS the annual payment due in the amount of $200,000, and the default continued after KPS gave IPI its 10-day notice of default pursuant to the agreement.
“The Agreement provides that interest at the rate of 10% per annum shall accrue as to any amount that is not timely paid by IPI to KPS pursuant to the Agreement. The Agreement further provides that, in the event of a breach of the Agreement and/or if any legal action is taken to enforce any provision of the Agreement, the prevailing party in any action to enforce any obligation pursuant to the Agreement shall be entitled to a recovery of costs and reasonable attorney fees,” the complaint added.
