IMPERIAL Pacific International has refiled in federal court its two lawsuits against Gov. Arnold I. Palacios and Commonwealth Casino Commission officials, alleging breach of the casino license agreement.
Last month, amid ongoing settlement negotiations with CCC, IPI asked the federal court to dismiss the lawsuits without prejudice. The court granted the request.
Variety learned that the settlement negotiations had stalled, and that the main point of disagreement was the settlement amount.
According to CCC, IPI has failed to pay, since 2020, the $15.5 million annual exclusive casino license fee, which now amounts to over $62 million, and the $3.15 million annual regulatory fee due to the commission, now in the sum of $17.6 million, for a total of $79.63 million.
Defendants
In its refiled lawsuits, IPI named as defendants, in their official and personal capacities, Gov. Palacios, CCC Chair Edward C. Deleon Guerrero, Vice Chair Rafael S. Demapan, Commissioners Mariano Taitano, Martin Mendiola, Ramon M. Dela Cruz and Executive Director Andrew Yeom.
Through attorneys Stephen Nutting and Michael Chen, IPI is suing the defendants for unconstitutional impairment of contract, violation of the contract clause of the U.S. and CNMI constitutions, violation of the takings clause of the U.S. Constitution, violation of the due process clauses of the U.S. and CNMI constitutions, and breach of the casino license agreement.
IPI is also suing the defendants for violation of the due process clauses of the U.S. and CNMI constitutions, as well as violation of Article IV of the CNMI Constitution.
IPI wants the federal court to rule in its favor and issue a declaration that the current regulatory scheme established by 4 CMC §2314 and NMIAC § 175- 10.1 where CCC is not and cannot function as an impartial decision-maker, is unconstitutional.
IPI also wants the court to issue an injunction that the defendants “may not exercise any power granted by 4 CMC §2314 and NMIAC § 175-10.1, as long as CCC as an instrument under the control of defendants, is not and cannot function as an impartial decision-maker.”
In addition, IPI is seeking an injunction against “defendants preventing the assumption of jurisdiction by CCC to interpret the terms of [the casino license agreement or] CLA and/or to adjudicate claims arising out of the CLA, including but not limited to Complaints 2021-001, 002, 003, 004, and 005.”
IPI likewise requested the court for an order directing the defendants “to vacate, nullify any and all adverse administrative decisions against IPI that were based upon the assumption of jurisdiction by CCC to interpret the terms of CLA and/or to adjudicate claims arising out of the CLA, including but not limited to Commission Order No. 2021-002; for the Court to issue an injunction against defendants preventing the enforcement of any CCC order, including but not limited to Commission Order No. 2021-002, when such orders are the fruits of an unconstitutional regulatory scheme.”
IPI is also seeking a court declaration stating that “IPI is exempt or excepted from, or not subject to the terms of the Regulatory Fee because of the express terms of the CLA entered into by IPI and CNMI prior to the enactment of the annual regulatory fees statute.”
IPI likewise requested the court for an injunction “preventing the enforcement of the Regulatory Fee Statute and collection of the annual regulatory fee against IPI, or mandating that defendants exempt or except IPI from the annual regulatory fee given the express terms of the CLA entered into by IPI and CNMI prior to the enactment of the annual regulatory fee statute.”
IPI wants the court to issue a declaration stating that the “Regulatory Fee Statute, as applied to IPI is unconstitutional.”
IPI also wants the court to order the defendants “to pay restitution of all regulatory fees paid by IPI in the past”; and to direct the defendants “to vacate, nullify any and all adverse administrative decisions against IPI that were based upon the annual Regulatory Fee Statute, including the imposition of fees, interests and penalties for failure to pay the annual regulatory fees; as well as the suspension of its license based upon the annual regulatory fee statute, including but not limited to Commission Order 2021-002 and the recent demand for immediate payment of regulatory fees.”
Hearing
CCC has rescheduled for the third time the hearing for the revocation of IPI’s exclusive casino license.
The hearing is now set for Feb. 28, 2024, at 9 a.m. in the commission’s conference room at Springs Plaza in Gualo Rai.
CCC scheduled a hearing after IPI failed to pay its outstanding obligation to the CNMI government on Dec. 30, 2023.
