PACIFIC Rim Land Development LLC has asked the federal court to dismiss with prejudice the lawsuit it filed against Imperial Pacific International LLC for breach of construction contract.
“It has been a long, tedious, contentious, and challenging task for Pacific Rim to collect payment for its work as the General Contractor for IPI’s casino and resort project,” said attorney Colin Thompson who represents Pacific Rim in the litigation.
The lawsuit should be “voluntarily dismissed with prejudice as Pacific Rim is ready to end litigation and there is no reason not to dismiss with prejudice,” he told the court.
Almost three and one-half years ago, he said, “Pacific Rim and IPI mutually terminated the Construction Contract with the notable absence of any allegations that Pacific Rim breached the Contract. Before the agreed termination, Pacific Rim and IPI resolved the matter of payment by negotiating the Promissory Note, that was executed simultaneously with the Notice of Mutual Termination.”
But because IPI failed to pay Pacific Rim as agreed, Pacific Rim sued IPI a year later on three counts: breach of the contract, breach of the promissory note, and quantum meruit — “getting what you deserve for the services that you have rendered under a contract.”
Pacific Rim sued IPI for refusing to pay for services in the amount of $5.65 million after the contractor substantially completed or completed agreed-upon construction work for IPI’s casino-resort project on Sept. 30, 2018.
On April 27, 2020, the District Court for the NMI entered judgment in favor of Pacific Rim in the amount of $5.65 million, which IPI appealed on May 21, 2020.
On May 28, 2020, the federal court entered a final judgment in favor of Pacific Rim in the amount of $6.9 million including the principal amount and attorney’s fees and costs.
IPI appealed the final judgment to the U.S. Court of Appeals for the Ninth Circuit, which upheld the final judgment on Oct. 20, 2021.
On Nov. 19, 2021, Chief Judge Ramona V. Manglona granted Pacific Rim’s motion to release to Pacific Rim the $5.52 million held in an investment portfolio consisting of short-term U.S. government bonds with Merrill Lynch, Pierce, Fenner & Smith Inc.
An IPI investor, Pacific International Property Management LLC, earlier placed $5.52 million “within the absolute discretion of the [federal] court for the purpose of securing a stay and paying on the judgment in the event that Pacific Rim prevailed in the appeal.”
IPI has no claims remaining in this case, and Pacific Rim is content with its victory on the promissory note, Thompson stated in his motion to dismiss the lawsuit.
“Given its success on the merits of that claim, Pacific Rim now wishes to end this litigation and the attendant expense and stress that will accompany discovery, further motion practice, and ultimately, trial on the merits of its other claims,” Thompson said.
He added, however, that the motion to dismiss assumes that IPI has no remaining claims in this case.
He noted that IPI has filed a motion “to reconsider, to amend the scheduling order, and for leave to amend pleadings to assert counterclaims.”
“If the court grants IPI’s motion, then Pacific Rim reserves the right to withdraw [its] motion [to dismiss the lawsuit],” Thompson said.
