DISTRICT Court for the NMI designated Judge David O. Carter ordered the Commonwealth Casino Commission to confirm the current date of the revocation hearing for Imperial Pacific International’s sole casino license.
Judge Carter likewise ordered IPI to show cause why relief is required by April 2.
IPI, through attorney Michael Chen, has asked the court to issue an order restraining CCC from deliberating and voting on the charges filed by its executive director to revoke IPI’s casino license.
“This relief is necessary to preserve the status quo pending adjudication of IPI’s important claims (presently pending in this court),” Chen said.
The emergency TRO named Gov. Arnold I. Palacios, CCC Chair Edward C. Deleon Guerrero, Vice Chair Rafael S. Demapan, Commissioner Ramon M. Dela Cruz, Commissioner Mariano Taitano, Commissioner Martin T. Mendiola and Executive Director Andrew Yeom as defendants in their personal and official capacities.
In response to the court’s order to show cause, Chen said after the hearing that was held from February 28 to March 1, 2024, IPI was officially notified by CCC that the deliberation and decision for the casino license revocation hearing was scheduled for April 2, 2024.
He said after the filing of the second TRO, “I was not notified by any means (including but not limited to email, text message, phone calls) by any member of CCC, including its commissioners, executive directors, their legal counsels, or employees about the continuation of the deliberation and decision, which was scheduled to take place on April 2, 2024.”
Chen added, “I don’t know for certain whether the deliberation and decision has been continued and the location and new time and date for the continued deliberation and decision will be. I did find a news article on www.mvariety.com, which states that the deliberation for the revocation hearing is continued to April 9, 2024. I just confirmed with Mr. Howyo Chi, director of IPI, that he was notified by the executive director of CCC that the revocation hearing was continued in a WhatsApp call on Thursday, March 28, 2024.”
“Should the Commissioners confirm with the Court that the deliberation and decision will be continued to April 9, 2024, as the news article stated, it is not necessary for the court to provide the requested relief by April 2, 2024,” Chen said.
“Should the Commissioners or an authorized representative of CCC not confirm with the Court that deliberation and decision on the license revocation hearing is continued to April 9, 2024, as ordered by the Court, IPI would have to assume that the deliberation and decision may still move forward as scheduled since the only written notice about the deliberation and decision date from CCC indicates that the revocation and decision will take place on April 2, 2024. As such, IPI would think it is still necessary for the Court to grant the requested relief before 9 a.m. on April 2, 2024,” Chen added.
For its part, CCC, through Assistant Attorney General Carl F. Dela Cruz, informed the court that the deliberation is currently scheduled to take place on April 9, 2024.
In an affidavit filed with the court, CCC Vice Chairman Rafael Demapan stated, “On March 28, 2024, the Commission held its most recent regular monthly meeting. In the meeting, the Commission members voted to schedule April 9, 2024, as the date to deliberate and make a decision on the revocation hearing involving the exclusive gaming license held by IPI.”
Demapan said the “Commission did not notify IPI that April 2, 2024, was the date for the deliberation because it was an agenda item to be voted upon. Notably, when the issue was voted upon during the March 28 meeting, the Commission decided to schedule the deliberation for April 9, 2024, instead of the proposed April 2, 2024, date in view of the uncertainty related to IPI’s second motion for TRO pending before the court.”
In January, IPI filed two lawsuits against the governor and the CCC officials alleging breach of the casino license agreement. Amid ongoing settlement negotiations with CCC, IPI asked the federal court to dismiss the lawsuits without prejudice. The court granted the request.
In late February, after IPI’s settlement proposal was rejected by the governor, it refiled the two lawsuits against Palacios and CCC officials.
IPI sued 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 (1:24-cv-00001).
IPI also sued the defendants for violation of Article IV of the CNMI Constitution (1:24-cv-00002).
On Feb. 27, 2024, Judge Carter denied IPI’s emergency motion for a temporary restraining order to prevent CCC from conducting a hearing, which then took place from February 28 to March 1, 2024.
