Thompson, who represents Pacific Rim in a breach of contract lawsuit against IPI, urged the federal court to rule in his client’s favor.
Thompson asked the court to grant the plaintiff’s summary judgment motion and award Pacific Rim $5.65 million plus interest and costs including attorneys’ fees and costs.
Thompson said the straightforward case is about the failure of IPI to pay Pacific Rim for work completed and materials supplied to the casino project.
He said the facts are simple:
“IPI engaged Pacific Rim to construct the project. Not long thereafter, IPI fell behind on paying invoices from Pacific Rim. After months of delayed and insufficient payments, the parties agreed to terminate their construction contract and entered into a promissory note wherein IPI promised to pay Pacific Rim amounts owed in scheduled payments. After just two months IPI failed to make the scheduled payments in breach of the note.”
In his nine-page summary judgment motion, Thompson stated that on Feb. 13, 2018, Pacific Rim and IPI executed a written construction contract for the casino project.
Pacific Rim submitted monthly invoices to IPI for the labor and materials, and IPI hired a third-party auditor company, Bluestone Management, to review the invoices, Thompson said.
“IPI paid the first few invoices, but as time went on, they slowed the payments and then stopped making payments. IPI’s first failure to timely pay Pacific Rim the amount due under the contract was on or about May 11, 2018.”
After months of sporadic payments and negotiations, Thompson said the parties decided to terminate the contract and Pacific Rim and IPI agreed that IPI would execute the note.
“IPI agreed to pay $11.3 million for the materials and labor incorporated into the project. On Sept. 21, 2018, IPI and Pacific Rim finalized negotiations and IPI executed the note in favor of Pacific Rim,” Thompson said.
He said IPI’s attorneys and auditor participated in drafting the provisions of the promissory note, which contained a payment schedule.
“IPI breached its obligations under the note by failing to pay its monthly payments when due, beginning with the payment due on Nov. 15, 2018. IPI has been in default on the note since November 15, 2018,” Thompson said.
In the event of a default, Thompson added, Pacific Rim has the right to accelerate the payments on the note and require immediate payment in full of all sums owed under the note.
In May 2019, Pacific Rim sent IPI a notice of its defaults under the note.
“The defaults remain uncured to date,” Thompson said. “IPI owes under the note the sum of $5.65 million.”
Pacific Rim has also filed an application for a mechanic’s lien on IPI’s hotel-casino project and on the land that where it sits.
A mechanic’s lien refers to a security interest in the title to property for the benefit of those who have supplied labor or materials that improve the property.
In response to the lawsuit, IPI said Pacific Rim intentionally overstated the costs it incurred in the construction of IPI’s hotel/casino project in Garapan.
“Pacific Rim [also] fraudulently obtained from IPI a promissory note, which is therefore unenforceable,” IPI added.
