CLEAR Management, the court-appointed receiver, through attorney Michael White, has informed the federal court that there are 21 pending claims against Imperial Pacific International LLC in local and federal courts.

Chief Judge Ramona V. Manglona of the District Court for the NMI recently ordered the receiver to file an interim report that includes a list of IPI’s creditors known to the receiver.

IPI, for its part, has appealed to the U.S. Court of Appeals for the Ninth Circuit the District Court’s denying IPI and some of its creditors’ motion to stay the limited receivership.

According to Clear Management, it has sent an email to all entities that have entered an appearance in U.S.A. Fanter Corporation vs IPI (1:20-CV-00003 civil case) as creditors of IPI.

They are:

• Sardini Group Inc. which sued IPI for breach of contract for construction design in the amount of $1,901,307. The lawsuit is pending before the federal court. Trial is scheduled to resume on Dec. 5, 2022. The plaintiff has notified the court of its intent to participate in the receivership.

• Art Man Environmental Corporation has a claim against IPI on a construction contract in the amount of $83,555.78. The CNMI Superior Court has entered a judgment in favor of Art Man. Art Man has notified the federal court of its intent to participate in the receivership.

• Winzy Corporation has a claim against IPI arising out of a contract for construction consulting in the amount of $179,217.50. The federal court has issued a judgment upon the claim and Winzy Corp. has notified the court of its intent to participate in the receivership.

• J.M. Aquino, P.C. has a claim against IPI for engineering services in the amount of $190,648. The case was voluntarily dismissed, without prejudice, and J.M. Aquino has notified the federal court of its intent to participate in the receivership.

• Tang’s Corp. has a claim against IPI pursuant to a contract for construction and consulting services in the amount of $331,023.52. Trial is scheduled to begin on Dec. 5. Tang’s Corp. has notified the court of its intent to participate in the receivership.

• Zhen’s Corp. has a claim against IPI for unpaid meals in the amount of $10,202.95. No litigation is pending. Zhen Corp. notified the federal court of its intent to participate in the receivership.

• Yantze Corp. has a claim against IPI for a construction contract in the amount of $248,000 which is pending before the CNMI Superior Court. Yantze Corp. has notified the federal court of its intent to participate in the receivership.

• RC LLC has a claim against IPI for manpower services in the amount of $69,722.25 plus 9% interest. The CNMI Superior Court issued a judgment in the plaintiff’s favor. The plaintiff has notified the federal court of its intent to participate in the receivership.

• Yu’s LLC. has a claim against IPI for vehicle maintenance in the amount of $38,512 plus 9% interest. The claim has been reduced to judgment in the local court. The plaintiff has notified the federal court of its intent to participate in the receivership.

• Ping Shun Corporation has a claim against IPI for food services in the amount of $443,900.50. The federal court has entered a final judgment in favor of the plaintiff, but the U.S. Court of Appeals vacated the order. The District Court has subsequently granted partial summary judgment for $263,000 but no final judgment has been entered.

• Former IPI CEO Donald R.  Browne has sued IPI for unpaid wages in the amount of $110,210.62. The default of IPI has been entered in Superior Court and a motion for default judgment is pending.

• Donny Vince Seman Fejeran has a claim against IPI for negligence, based upon the alleged failure of a scaffolding erected outside IPI’s building. The case is pending before the Superior Court. IPI’s default has been entered and a motion for default judgment is pending.

• Kan Pacific Saipan Ltd. has a claim against IPI for breach of a 2016 settlement agreement in the amount of $4,490,000 plus attorney’s fees and costs. The case is pending before the federal court. 

• The law office of Michael W. Dotts LLC has a claim against IPI for breach of contract for professional services in the amount of $425,764.44. The Superior Court has entered a judgment in favor of the law office of Michael W. Dotts. 

• Özcan Genç has two claims against IPI. The first is a breach of contract claim brought on behalf of a class of 102 Turkish workers. The amount of the claim is estimated by counsel at “just over $1 million.” The case is pending before the District Court. Genç has a second claim pending against IPI under Title VII. Counsel has no estimate of damages. The District Court has granted a motion to dismiss the case with leave to amend. The receiver has no further information as to the status of the case.

• Angel Playing Cards has a claim against IPI for the balance due on the purchase of playing cards in the amount of $68,000. A lawsuit has not been filed yet in Superior Court.

• Former IPI employee Joshua Gray sued IPI for wrongful termination and the case is pending in federal court. Gray is asking this court for $3,939,768 for damages plus attorney’s fees and costs. Gray has informed the federal court about his intent to participate in the receivership.

• The CNMI government has a claim against IPI for unpaid taxes with penalties and interest. The total amount of the claim is $9,525,362.86. The CNMI government has filed tax liens, but no litigation has been filed to enforce the liens. The CNMI government has recently moved the court for leave to participate in the receivership.

• Atkins Kroll Saipan has sued IPI for unpaid vehicle rentals in the amount of $78,403. The local court has issued a judgement in favor of Atkins Kroll on Sept. 21, 2021. A notice of intent to participate in the receivership has been filed by Atkins Kroll with the federal court.

• Ecolab Guam LLC has a claim against IPI for unpaid merchandise purchases in the amount of $17,629.84. The local court issued a judgment in favor of the plaintiff on Feb. 2, 2022. The plaintiff has filed a notice of intent to participate in the receivership.

• G4S Security Services (CNMI) has a claim against IPI for unpaid security services in the amount of $11,700.23. The local court issued a judgment in favor of G4S on Jan. 26, 2021. G4S has filed a notice of intent to participate in the receivership.

Clear Management also informed the court that, to date, the sales of IPI’s casino equipment have totaled $711,600 which included $301,500 from Angel Playing Cards and $410,000 from the October 7 auction.

According to Clear Management, whose fees are fixed at 10% of sales, it is entitled to $71,116 of the sales amount.

Clear Management said it also incurred expenses in connection with sales conducted in the amount of $22,918.28.

“A detailed itemization of these expenses…will be provided when the receiver asks the court for authority to disburse such funds from the funds currently being held in escrow. If the court requires this detailed presentation at an earlier date, the receiver would be happy to provide the same,” Clear Management attorney Michael White said.

He added that the amount of expenses does not include unbilled legal fees and expenses which he estimated to be $4,000.

Reporter

Bryan Manabat studied criminal justice at Northern Marianas College. He covers the community, tourism, business, police and court beats.

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