THE Commonwealth Ports Authority has filed a lawsuit in Superior Court against two companies that brought in yachts to the CNMI pursuant to a business agreement with Imperial Pacific International LLC.
CPA sued Phoenix Services Inc. and Pride Keen Limited for, among others, breach of contract. The two companies were hired by IPI to provide VIP amenities to the casino investor’s guests in the form of access to or use of luxury yachts.
Represented by attorney Robert Torres, CPA is asking the court to issue a judgment in favor of CPA and award it damages, with the sum total still to be determined, plus interest of 9% a year.
According to the lawsuit, Phoenix Services owes CPA over $91,000 in delinquent fees.
Phoenix Services procured yachts from Pride Keen and signed a lease agreement with CPA for the use of Saipan’s commercial docks, the lawsuit added.
Although Pride Keen had no involvement in the lease agreements, CPA stated that the company has been unjustly enriched as it owns the two vessels that have been docked on Saipan for years for free.
CPA sued the companies for breach of contract (promissory note, monthly permit fees, home port fees) breach of covenant and good faith and fair dealing, and unjust enrichment.
CPA wants the court to issue an order directing the luxury yachts, specifically Grand Mariana 4 and Grand Mariana 5, to remain docked at CPA’s Delta Dock at the defendants’ expense until judgment for damages is paid in full or until the vessels are sold for the purpose of fulfilling the judgment the court issues.
Phoenix Services leased Charlie Dock 2 from CPA from December 2015 to November 2020. In October 2019, Phoenix Services submitted a bunker application in order to also lease Delta Dock from CPA, the complaint stated.
After CPA and Phoenix Services entered into an agreement, CPA issued the company a revocable permit for the use of Delta Dock.
For the use of the dock, Phoenix agreed to pay home port fees per vessel that would be docked there, in addition to a monthly permit fee.
Sometime in March 2020, the business plan faltered and ceased operations due to the global pandemic. Phoenix Services failed to pay for both the use of Charlie Dock 2 and Delta Dock.
CPA then entered into an alternative agreement with Phoenix Services after reducing the fees for the use of Delta Dock in consideration of the pandemic and its impact on the economy.
In February 2021, Phoenix Services asked for discounts on the monthly permit fee, to which CPA obliged by waiving 50% of the monthly permit fee from October 2020 to March 2021. CPA also provided the company with a draft of a promissory note for repayments toward past due fees.
On March 30, 2021, CPA and Phoenix Services entered into an agreement regarding the promissory note, with Phoenix Services promising CPA that it would pay its debts from the Charlie Dock lease agreement and the Delta Dock permit. The total amount due to CPA was $91,827.35.
But Phoenix Services has only made two payments toward the promissory note — a $5,000 payment on April 28, 2021, and another $5,000 on July 16, 2021 for a total of $10,000.
According to CPA, Phoenix Services has made no additional payments, even after CPA’s notice of default and demand for full payment on Sept. 29, 2021.
The Grand Mariana 4 and Grand Mariana 5 at Delta Dock of Port of Saipan in Puerto Rico on Friday.
