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Court to issue show cause order against IPI if no attorney makes an appearance in USA Fanter lawsuit

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THE federal court will issue a show cause order today, Monday, against Imperial Pacific International LLC, if no attorney will make an appearance on its behalf in the breach of contract lawsuit file by USA Fanter Corporation.

At the status conference on Thursday, attorney Stephen Nutting told the court that he was not fully retained yet to represent IPI in the lawsuit and that a decision would be made that afternoon.

District Court for the NMI Chief Judge Ramona V. Manglona said, “If an entry of appearance is made [on Monday], the court will issue an order setting a case management conference and counsel shall submit proposed scheduling order. If no entry of appearance is made by counsel, the court will issue an order to show cause.”

The law firm of O’Connor, Berman, Horey & Banes withdrew its representation of IPI  after a four-day bench trial to determine if USA Fanter had enough evidence to establish a mechanic’s lien on the property of IPI.

The mechanic’s lien claim by USA Fanter has been taken under advisement by Judge Manglona.

USA Fanter, represented by attorney Colin Thompson, sued IPI for breach of contract in the amount of $2 million.

Thompson said IPI did not pay the full amount due to USA Fanter under their construction contract for labor and material provided by the plaintiff for the improvement of the real property of the casino investor.

IPI has only paid USA Fanter $300,000 under the terms of the construction contract, he added.

The lawsuit stated that USA Fanter has satisfied its contractual obligations, thereby obligating IPI to pay USA Fanter the price the casino investor agreed to pay pursuant to the terms of the contract.

The unpaid balance due is not less than $2,089,345.28, the lawsuit stated.

At the status conference on Thursday, IPI vice president Tao Xing and representative Jonathan Tsai were present.

Judge Manglona in April issued an order stating that USA Fanter had established by probable cause that IPI owed USA Fanter $2.089 million, adding that the plaintiff “shall have a mechanic’s lien to attach upon the improvements of the Imperial Pacific Resort hotel-casino complex and the real property interest of IPI in Garapan…for the lien amount of $2.089 million.”

According to an online legal encyclopedia, “mechanic’s liens are legal documents that essentially reserve the rights of the filer to seek unpaid compensation. They are usually filed by contractors, subcontractors, or suppliers that never received payment for work that they performed or materials that they provided on the property.”

 

 

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