IMPERIAL Pacific International LLC has been sanctioned again by the federal court for failing to comply with a previous discovery order in a lawsuit filed by USA Fanter Corporation Ltd. against IPI.
In its complaint, USA Fanter stated that IPI failed to pay a construction staging lease agreement, quarry products and heavy equipment rentals.
Chief Judge Ramona V. Manglona of the U.S. District Court for the NMI found IPI in contempt and imposed sanctions on the casino developer for its continued failure to comply with the court’s discovery order.
Judge Manglona also ordered that IPI’s answer in the lawsuit be set aside, and default be entered.
The judge likewise vacated the bench trial scheduled for Nov. 15, 2022, and instead set a hearing for damages for the same date at 10 a.m.
USA Fanter has sought an order directing IPI to show cause why sanctions should not be imposed for its failure to comply with the court’s discovery order entered on Aug. 4, 2022.
IPI has not filed any opposition or response to the motion.
On Aug. 1, 2022, USA Fanter’s counsel, Colin Thompson, and the then-counsel for IPI, Joey P. San Nicolas, participated in a telephonic conference with Magistrate Judge Heather L. Kennedy pursuant to USA Fanter’s request.
USA Fanter “requested the conference because on July 27, 2022, IPI failed to produce a witness at a properly noticed 30(b)(6) deposition.”
As a result, the parties stipulated for IPI to present a deposition witness within two weeks of the issuance of an order based on Federal Rule of Civil Procedure 30(b)(6).
The court granted the stipulation on Aug. 4, 2022 and ordered that IPI produce a witness for the deposition within two weeks thereafter. On the same day, the court held a hearing on San Nicolas’ motion to withdraw as counsel for IPI. The court granted the motion and noted that for purposes of effectuating service on IPI, USA Fanter would serve IPI’s registered agent, Howyo Chi. The court reminded IPI that it could not appear in court without counsel.
According to Thompson, IPI’s registered agent, Howyo Chi, received the amended notice of deposition scheduled for Aug. 17, 2022 at 10 a.m.
The day before the deposition, Thompson met and conferred with IPI’s representative Tao Xing and IPI’s qualified Rule 30(b)(6) witness, Frances C. Mafnas.
But on Aug. 17, 2022, IPI did not provide a witness for the scheduled deposition.
USA Fanter subsequently filed a motion for order to show cause. IPI did not file an opposition in response.
USA Fanter is asking the District Court for the NMI to issue an order in favor of USA Fanter, which is seeking “general compensatory and consequential damages in amounts to be shown in accordance with proof at the time of trial.”
USA Fanter wants the court to award it $61,600 for rent pursuant to the staging lease agreement; $87,772.55 for amounts due for work completed under the construction contract as described in the change order; and an award of $15,462 for the provision, supply, and delivery of the quarry materials as described in the oral contract and quarry delivery slips.
USA Fanter is also seeking $61,292.50 for the provision, supply, delivery and rental of heavy equipment as described in the equipment rental contracts and as evidenced in the signed invoices for the heavy equipment after delivery to IPI.
In addition, USA Fanter is seeking attorney’s fees and costs and litigation fees and costs and all related fees and costs as otherwise may be provided by contract or by law.
USA Fanter also sued IPI for failure to pay the full amount due under their construction contract for labor and materials provided for the improvement of IPI’s real property.
According to that lawsuit, IPI had paid USA Fanter $300,000 only and the unpaid balance due was not less than $2,089,345.28.
The federal court has since issued a final judgment in favor of USA Fanter, and since the judgment has not been satisfied in that case, a receiver has been appointed for the sale of IPI’s assets.
USA Fanter also sued IPI for defamation. The case is still pending in federal court.
In that lawsuit, USA Fanter accused IPI of making libelous statements in a press release it transmitted to and published by the two local newspapers: Marianas Variety and Saipan Tribune.
