THE federal court has issued an order striking the answer of Imperial Pacific International LCC in the lawsuit of U.S.A. Fanter Corporation Ltd., and directed the clerk of court to “enter default” against IPI.
The plaintiff seeks over $200,000 in damages for a relatively straightforward set of claims including breach of contract and account stated, Chief Judge Ramona V. Manglona of the District Court for the NMI said.
“Yet this case has been pending for over a year, and IPI has not demonstrated any good faith for its failure to comply with the court’s discovery order. To avoid the unnecessary expense and burden of a trial without IPI having an attorney to defend itself, the court determines that sanctions are appropriate,” she said.
In considering the possible sanctions, the judge said the court previously found IPI in contempt of court for the same failure to produce a witness properly noticed for a Rule 30(b)(6) deposition and imposed the lesser sanction of awarding attorney’s fees and costs to the plaintiff.
Because trial was scheduled to begin on Nov. 15, 2022, only weeks away from the second order to show cause hearing, and this being the defendant’s second contempt finding for the same violation, Judge Manglona set aside IPI’s answer and ordered that an entry of default pursuant to Rule 37 of the Federal Rules of Civil Procedure be entered against IPI.
In its lawsuit, U.S.A. Fanter stated that IPI failed to pay a construction staging lease agreement, a construction contract, quarry products, and heavy equipment rentals.
In another lawsuit, U.S.A. Fanter sued IPI for its failure to pay the full amount due under their construction contract for labor and materials provided for the improvement of IPI’s real property.
The lawsuit stated that IPI had paid U.S.A. Fanter $300,000 only and the unpaid balance due was not less than $2,089,345.28.
In that lawsuit, the federal court issued a final judgment in favor of U.S.A. Fanter, but since the judgment has not been satisfied, a receiver, Clear Management, has been appointed to oversee the sale of IPI assets.
Clear Management recently informed the court that, to date, the sales of IPI’s casino equipment have totaled $711,600.
The receiver likewise told the court that there are 21 other pending cases against IPI.
U.S.A. Fanter has also sued IPI for defamation. The case is still pending in federal court.
In that lawsuit, U.S.A. Fanter has accused IPI of making libelous statements in a press release it transmitted to, and was published by, two local newspapers: Marianas Variety and Saipan Tribune.
