The United States Courthouse in Gualo Rai, Saipan.
DISTRICT Court for the NMI Chief Judge Ramona V. Manglona has awarded the Commonwealth Casino Commission $94,068.15 in fees and costs for the expenses it incurred in complying with a preliminary injunction that compelled the CCC to enter into arbitration with Imperial Pacific International.
In her seven-page order, Judge Manglona said the “CCC was wrongfully enjoined when the Court issued the Temporary Restraining Order and subsequent injunction prohibiting CCC from proceeding with its May 24-25 revocation proceedings and mandating the CCC to partake in arbitration.”
The judge also directed the clerk of court to immediately release $94,068.15 from the $100,000 bond provided by IPI to the CCC.
CCC, though Assistant Attorneys General Keisha Blaise and Alison Nelson, filed a motion for award of fees and costs.
IPI opposed the motion, saying that “the CCC cannot show it was wrongfully enjoined; the CCC’s recovery must be limited based on proved damages; and the CCC should be disallowed from recovering its expert fees.”
But according to Blaise and Nelson, all conditions for recovery of the bond issued pursuant to the TRO issued by the District Court on May 23, 2022, have been satisfied.
“First, this Court holds a $100,000 bond provided by the plaintiffs. Second, the United States Court of Appeals for the Ninth Circuit reversed this Court’s decision compelling the parties into arbitration, which establishes that the Commission had the right to proceed with revocation proceedings and issuance of the injunction was wrongful. Third, the Commission has monetary damages that result from the injunction, as the Court compelled the Commission to participate in arbitration and the Commission has incurred significant expenses as a result of the wrongful injunction,” Blaise and Nelson said.
“From October 2022 until the present, the Commission has expended significant costs participating in the arbitration, including but not limited to administrative fees to the American Arbitration Association, payment to the arbitrator, expert fees, travel expenses, and all other associated costs. As a result of this Court’s Order, the Commission has spent over $94,068.15. In addition to the arbitration expenses, the Commission has suffered financially due to its inability to pursue the revocation action,” the assistant AGs added.
“Due to non-payment of the Casino Regulatory Fee since 2019, the Commission has been forced to terminate all of its employees and has been unable to pay all costs associated with maintaining its office space and other administrative necessities,” the government lawyers stated.
