FOLLOWING a settlement conference on Tuesday, Imperial Pacific International LLC has agreed to provide a supersedeas bond in the amount of $2.45 million as surety for the judgement in the lawsuit filed by USA Fanter Corp. Ltd. against the Saipan casino investor.
According to an online legal dictionary, a supersedeas bond — also known as an appeal bond — is a type of surety court bond that is required in a court of law when a party wants to appeal a ruling to a higher court while delaying the payment of a judgment.
USA Fanter, through attorney Colin M. Thompson, and IPI, through its lawyers Kevin T. Abikoff and Stephen J. Nutting, filed a stipulation on Wednesday regarding the security interest to be provided by IPI in connection with its motion to stay judgment pending appeal.
According to the stipulation, IPI agrees to provide a supersedeas bond in the amount of $2.45 million as surety for the judgment.
IPI also agrees to secure this bond by Dec. 15, 2021.
“Should IPI secure the bond by December 15, USA Fanter agrees that this shall constitute sufficient security and shall not oppose a stay of enforcement in this action, including a motion to stay the receiver appointed by the court in this action, as well as any enforcement of a writ of attachment or mechanics lien,” the stipulation stated.
Should IPI fail to secure the bond by Dec. 15, IPI agrees not to oppose the receivership and not to bring a motion for a further stay of the receivership, the stipulation added.
Last month, Judge Ramona V. Manglona of the District Court for the NMI postponed the sale of IPI’s property.
She likewise granted IPI’s motion to stay judgment — for two weeks or up to Dec. 15 — pending appeal and motion for relief.
At the same hearing, Judge Manglona said she would issue an order modifying the limited receivership and to reflect the postponed sale of IPI’s property to Dec. 31.
The judge gave the parties up to Dec. 8 to work out a stipulation and details regarding security interest.
The plaintiff, USA Fanter Corp. Ltd., sued IPI for failing to pay the full contract amount due for labor and materials it provided for the improvement of IPI’s real property in Garapan.
The lawsuit stated that IPI had paid USA Fanter $300,000 only and the unpaid balance due was not less than $2,089,345.28.
On May 4, 2021, Judge Manglona issued an order directing entry of an “Amended Final Judgment re: Mechanic’s Lien.”
After IPI appealed to the U.S. Court of Appeals for the Ninth Circuit, USA Fanter applied for a writ of execution on the judgment, and filed a motion for limited appointment of receiver in aid of execution, which the court granted on Oct. 26, 2021.
USA Fanter, in a separate motion, also requested the federal court to issue an order foreclosing its mechanic’s lien against IPI.
A mechanic’s lien is a “hold” against property filed by an unpaid contractor. If unpaid, it allows a foreclosure action, forcing the sale of the property in lieu of compensation.
