PEACE and Order Trading Corporation has sued Fairyland Investment LLC, which is owned by Zhi Qi Shen, for breach of construction contract and unjust enrichment in federal court.
Peace & Order was the contractor hired by Fairyland to remodel and build an apartment building on Navy Hill, attorney Colin Thompson, who is representing the plaintiff, told the court.
He is asking the court to issue a default judgement in the amount of $767,697.50 against Fairyland.
Thompson said because no one made an appearance on behalf of Fairyland, the court should proceed to a default judgment.
On Feb. 5, 2021, Chief Judge Ramona V. Manglona of the District Court for the NMI found probable cause for an attachment of a mechanic’s lien in the lawsuit.
On March 9, 2021, she issued an entry of default against Fairyland.
According to the lawsuit, Peace & Order stopped work on the project because Fairyland refused to pay the amount owed for work completed under the construction contract.
Thompson said Peace & Order is entitled to damages not less $775,701.98 plus interest and attorney’s fees and a mechanic’s lien against the real property occupied by the apartment that Peace & Order renovated and made additional construction.
“Peace & Order endeavored in good faith to resolve this dispute prior to filing this, but Fairyland refused to honor its obligation to Peace & Order,” the lawyer added.
Thompson filed the lawsuit on behalf of Peace and Order on Dec. 7, 2020.
According to the lawsuit, on March 31, 2018, Peace & Order and Fairyland executed a written contract for renovation and additional construction on the Navy Hill project.
On Dec. 23, 2019, Peace & Order entered into two additional contracts to renovate the parking lot and fix the fire alarm system at the apartment.
The contract price for the first contract was $1,305,000 and the contract price for the two additional contracts was $195,000, the lawsuit stated.
So far, Thompson said Fairyland paid a total of $654,298.02 to Peace & Order for the first contract and $70,000 for the additional two contracts.
Thompson said Peace and Order began its work on the project on March 26, 2018.
He said Fairyland acknowledged that as of Dec. 18, 2019, it did not have issues, questions, and/or concerns as to the progress of the work done on the project.
He added that Fairyland acknowledged that Peace & Order completed 75% of the work on the project and it had performed all work pursuant to the contracts in a safe manner.
But according to the lawsuit, Fairyland did not respond to two notices for demand of payment by Peace and Order.
Thompson said despite repeated requests for payment, Fairyland failed and refused to pay Peace & Order the balance due and owing pursuant to the provisions of the contract.
