THE Commonwealth Casino Commission has asked the District Court for the NMI to issue an order awarding CCC $100,000 in fees and costs for the expenses it incurred as a result of the preliminary injunction filed by Imperial Pacific International LLC.
On June 28, 2023, the U.S. Court of Appeals for the Ninth Circuit issued a ruling in favor of CCC, reversing a previous District Court decision that stopped the regulatory agency from revoking IPI’s casino license, and compelling CCC to arbitrate its dispute with the casino investor.
According to Assistant Attorneys General Keisha Blaise and Alison Nelson, the District Court for the NMI holds a $100,000 bond provided by the plaintiffs.
They said the Ninth Circuit reversed the District Court’s decision compelling the parties into arbitration, and this establishes that the commission had the right to proceed with revocation proceedings, and that issuance of the injunction was wrongful.
Moreover, the commission has monetary damages that resulted from the injunction, as the District Court compelled the commission to participate in arbitration and the commission has incurred significant expenses as a result of the wrongful injunction, Blake and Alison said.
“From October 2022 until the present,” they added, the commission “has expended significant costs participating in the arbitration, including but not limited to administrative fees to the American Arbitration Association, payment to the arbitrator, expert fees, travel expenses, and all other associated costs. As a result of this Court’s Order, the Commission has spent over $94,068.15. In addition to the arbitration expenses, the Commission has suffered financially due to its inability to pursue the revocation action.”
In addition, the government lawyers said, due to IPI’s non-payment of the casino regulatory fee since 2019, the commission has been forced to terminate all of its employees and has been unable to pay all costs associated with maintaining its office space and other administrative necessities.
On May 23, 2022, IPI requested a temporary restraining order against the casino commission to prevent it from convening an enforcement hearing that would revoke IPI’s exclusive casino license. The District Court granted IPI’s motion for a TRO.
IPI also sought an order compelling the commission to participate in a non-binding arbitration with the American Arbitration Association pursuant to Section 30 of the casino license agreement; and a preliminary injunction against the commission from proceeding with the revocation without first going to arbitration.
In its ruling, the District Court stated that IPI had not waived its right to arbitrate, and “must be allowed to arbitrate all disputes….”
On Oct. 21, 2022, the commission appealed the District Court’s ruling to the Ninth Circuit, which reversed the District Court’s decision.
