AFTER many months of not answering the complaint filed by its contractor, apartment investor Fairyland Investment LLC., through attorney Michael Dotts, made an appearance in federal court on Wednesday.
Represented by attorney Colin Thompson, contractor Peace & Order on Dec. 7, 2020 sued Fairyland, which is owned by Zhi Qi Shen, for breach of construction contract and unjust enrichment.
According to its lawsuit, Peace & Order stopped work on the project because Fairyland refused to pay the amount owed for work completed under the construction contract.
Peace & Order sought damages of not less than $775,701.98 plus interest, attorney’s fees and a mechanic’s lien.
On April 13, 2021, the federal court issued a default judgment against Fairyland in the principal amount of $767,697.50 plus attorney’s fees and costs, including applicable federal interest rate for post-judgement interest.
On Sept. 29, 2021, Chief Judge Ramona V. Manglona of the District Court for the NMI granted the motion of Peace & Order to appoint a receiver for Fairyland to help the plaintiff satisfy a judgement in the amount of $767,697.50.
On Dec. 12, 2021, Judge Manglona appointed Ron Hodges as federal equity receiver who “shall have all authority, powers, and duties to sell Fairyland Investment LLC’s leasehold interest in Lot 019 D 61 and Lot 019 D 83” on Navy Hill.
Representing Fairyland Investment, attorney Dotts made an appearance in court following the filing of the receiver’s 2020 financial report.
Hodges told the court that he paid $787.10 for advertising the sale of the property, Lot 019 D 61 and Lot 019 D 83 on Navy Hill, in both local newspapers.
“I arbitrarily set the minimum bid at 200k US dollars (as lower may lessen probability of being accepted by court) with a maximum bid increment of 25k and minimum increment of 10k (to keep an under bidder close so we have an option should the winning bid falter so we may not need another sale), and will notify registered bidders soon,” Hodges stated in his report.
