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Camille Gardenia wants IPI to submit to arbitration over unpaid rent  

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RED Coral Corporation, doing business as Camille Gardenia, has asked the federal court to issue an order compelling Imperial Pacific International LLC to submit to a binding arbitration regarding the non-payment of residential lease, among other things.

Red Coral, through attorney Colin Thompson, filed a motion to compel arbitration on Wednesday in the District Court for the NMI.

Thompson said IPI and Red Coral entered into a valid lease agreement that contains an arbitration clause requiring either party to arbitrate their disputes arising from the lease.

“IPI breached the lease agreement by failing to pay rent and destroying or taking furniture, fixtures, and other property belonging to Red Coral when it vacated the premises,”  Thompson said.

“Red Coral has sent several demand letters as well as a demand to arbitrate. IPI has not responded to any of these demands. Without cooperation from IPI, Red Coral cannot arbitrate its dispute as it is required to do under the lease agreement,” Thompson said.

According to the lawyer, on July 15, 2016 Red Coral leased 20 apartment units to IPI for a term of three years ending on Sept. 1, 2019.

IPI failed to pay any rent to Red Coral for the months of January through August of 2019, Thompson said.

“When Red Coral inspected the apartment units it was discovered that much of the appliances and other property of Red Coral were either missing or destroyed. IPI’s failure to pay rent and repair damage it caused to the premises is a breach…of the lease,”  the lawyer said.

He added that Red Coral has sent IPI several demand letters, none of which were ever responded to by IPI.

He said due to the actions of IPI and failure to cure its breaches of the lease, the plaintiff was forced to hire an attorney to assist in the collection efforts.

On or about Dec. 6, 2019, the attorney for Red Coral served IPI with a notice and demand letter outlining damages to Red Coral and demanding payment from IPI for those damages, but it never received a response from IPI regarding this demand, Thompson said.

On June 5, 2020, Red Coral served Michael Dotts, attorney of record for IPI, with another notice of default and demand for payment letter, again outlining IPI breaches of the lease and damages suffered by Red Coral.

On June 23, 2020, the Red Coral attorney sent the IPI attorney of record a final demand for arbitration invoking the arbitration clause of the lease, but IPI has not responded to the arbitration demand.

According to the lease agreement, IPI was obligated to pay Red Coral $800 for each unit every month for a total of $16,000 per month.

During the term of the lease, Thompson said IPI stopped making payments to Red Coral from Jan. 1, 2019 through Sept. 1, 2019, leaving a total balance of $128,000 due for unpaid rent.

Thompson said before surrendering the property back to Red Coral, “IPI improperly removed the beds, linen, refrigerators, televisions, and mattresses from most of the apartment units. The items that were left behind and many of the units were dirty and damaged in violation of Section 23 of the lease. This cost Red Coral over $30,000 to replace the stolen property. Red Coral also spent an estimated $20,000 to repair, clean and sanitize all the units.”

Red Coral is demanding payment of $180,000 for past due rent, costs for repair, replacement of appliances and cleaning of the premises.

 

 

 

 

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