PACIFIC Rim Land Development LLC, through attorney Colin Thompson, has asked the federal court to release $5.59 million held in an investment portfolio consisting of short-term U.S. government bonds with Merrill Lynch, Pierce, Fenner & Smith Inc.
Recently, the U.S. Court of Appeals for the Ninth Circuit affirmed the decision of the District Court for the NMI in denying the request of Imperial Pacific International LLC to postpone summary judgment in favor of Pacific Rim.
On Nov. 16, Thompson filed a memorandum in federal court, stating that the district court should “make its determination regarding the release of monies from the fund to Pacific Rim, [which] prevailed on the appeal and therefore is entitled to the release of the fund. Pacific Rim moves this court to release $5,525,363.98 immediately to Pacific Rim and for the remaining amount to be released to Thompson Law LLC Client Trust Account until further order from the court.”
IPI sought to postpone summary judgment saying it had not been able to conduct discovery on its affirmative defense of fraud in the inducement.
But the district court denied IPI’s request, saying that the casino investor failed to satisfy the requirements of Federal Rule of Civil Procedure 56(d).
IPI then appealed to the Ninth Circuit, which affirmed the district court’s ruling last month.
Last year, in her order establishing security pending appeal, District Court for the NMI Chief Judge Ramona V. Manglona stated that Pacific International Property Management LLC or PIPM had “resolved to place $5,525,363.98 within the absolute discretion of the court for the purpose of securing a stay and paying on the judgment in the event that Pacific Rim prevailed in the appeal.”
The judge also noted that PIPM had increased the amount to be deposited to $5,599,975 to cover post-judgment fees, costs and interest.
According to the stipulation filed by Pacific Rim and IPI in court, PIPM is not owned by IPI and PIPM does not own IPI. PIPM is a separate and independent business entity from IPI. But PIPM agreed to pledge its own funds in the amount of $5,599,975.00 as security under FRCP Rule 62 as an alternative to a bond.
The funds “shall be available in full to satisfy the judgment, including fees, costs, interest, and damages for delay that may be awarded, if the appeal should be dismissed or the judgment affirmed.”
Pacific Rim sued IPI for breach of contract for refusing to pay for services in the amount of $5.65 million after Pacific Rim substantially completed or completed agreed-upon construction work for IPI’s casino-resort project on Sept. 30, 2018.
On April 27, 2020, Judge Manglona entered a judgment in favor of Pacific Rim in its lawsuit against IPI for breach of contract and breach of promissory note.
On May 2, 2020, the federal court entered an amended civil judgment in favor of Pacific Rim in the amount of $6.8 million including the principal amount and attorney’s fees and costs.
