IPI, Forson Holdings found in contempt of court

IMPERIAL Pacific International, LLC and Forson Holdings (CNMI) LLC have been found in contempt of court in the lawsuit filed by an apartment operator alleging breach of contract and breach of guarantee.

Citing the defendants’ failure to comply with her previous discovery order, District Court for the NMI Chief Judge Ramona V. Manglona earlier awarded the plaintiff, Fox Financial LLC, attorney’s fees in the amount of $2,100, which was supposed to be paid no later than March 30, 2021.

According to Fox Financial, represented by attorney Daniel T. Guidotti, the defendants failed to pay the amount by the deadline, prompting him to file a third motion for further sanctions.

A week later, Fox Financial, withdrew its motion, saying that the defendants had paid, albeit two days late. But Fox Financial still sought attorney’s fees for having to bring its motion. 

Because IPI and Forson Holdings failed to file any opposition, the judge granted Fox Financial’s motion for sanctions in the form of reasonable attorney’s fees and costs.

The judge ordered the plaintiff to submit certified timesheets in support of its attorney’s fees petition by Friday, April 23.

Fox Financial sued Forson Holdings for breach of contract, and IPI for breach of guarantee.

Fox Financial is seeking $118,000 from Forson and IPI including costs and attorney’s fees to be determined during trial.

In 2016, the lawsuit stated, Forson Holdings subleased a 21-unit apartment complex on Navy Hill from Fox Financial while IPI guaranteed that it would pay Forson’s obligation under the sublease if Forson failed to pay Fox.

In February 2020, Forson failed to pay Fox Financial more than $100,000 due under the sublease.

Likewise, the lawsuit stated, IPI failed to honor its promise to pay Forson’s obligation.

Guidotti said Forson owes Fox Financial at least $118,000 with accruing interest at 10% per year.

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