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Pacific Rim applies for writ of execution to enforce judgment against IPI

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PACIFIC Rim Land Development LLC requested the District Court for the NMI on Wednesday to issue a writ of execution directing the U.S. Marshal Service to seize money owned or controlled by Imperial Pacific International from the Bank of Saipan, City Trust Bank, Bank of Guam or First Hawaiian Bank.

The federal court recently entered a civil judgment in favor of Pacific Rim in the principal amount of $5.65 million.

In the application for writ of execution filed on Wednesday, Pacific Rim, represented by attorney Colin Thompson, said that the judgment remained unsatisfied in its entirety as IPI had not paid any sum.

Thompson said IPI had not obtained an order staying or suspending execution on the judgment, and that the automatic stay expired on May 27.

In his declaration accompanying the application for writ, Thompson said he contacted the attorney of IPI to demand payment for the judgment.

Thompson said attorney Michael Dotts, counsel of IPI, “informed me that IPI would seek a stay on the enforcement of judgment and did not offer to pay the judgment.”

Judge Manglona on Thursday issued an order granting the second motion of IPI to shorten time to hear its motion to stay or suspend the execution of the judgment amounting to $6.8 million including interest and attorney’s fees.  She scheduled the hearing for June 4, 2020 at 9:30 a.m.

IPI filed the end notice of motion to shorten time on Thursday.

The first motion to shorten time was filed on May 22 and was denied with prejudice by the federal court on May 26.

In denying the motion, Judge Manglona said the request of IPI was not a stipulation and contained no statement certifying efforts of the company to resolve the dispute without court action.

IPI is appealing the recent decision and order of the judge on April 23, 2020 finding IPI in breach of promissory note with its former contractor, Pacific Rim.

The judge said under the promissory note, Pacific Rim is entitled to reasonable attorney’s fees and costs for filing the lawsuit, as well as pre-judgment interest.

Dotts, in the motion to stay execution of judgment pending appeal, stated that “if the judgment becomes enforceable while the appeal is pending, IPI will be unable to pay it, and will likely close permanently.”

Pacific Rim sued IPI for breach of contract for refusing to pay for services in the amount of $5.65 million.

Pacific Rim also filed an application for a mechanic’s lien on the IPI hotel-casino project and on the land where it sits.

A mechanic’s lien refers to a security interest in the title to property for the benefit of those who have supplied labor or materials that improve the property.

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