CHIEF Judge Ramona V. Manglona of the District Court for the NMI found that Imperial Pacific International LLC has defamed USA Fanter Corporation Ltd. and awarded the plaintiff $500,000 in damages.
The court said IPI’s two press releases published in two CNMI newspapers defamed USA Fanter of its reputation as a reputable construction contractor having done business in the CNMI for over 30 years, and that defamation caused USA Fanter damage.
The judge directed the clerk of court to enter judgment in favor of USA Fanter in the amount of $250,000 in general damages and $250,000 in punitive damages for a total judgment amount of $500,000 plus post-judgment interest.
According to the court’s 47-page findings of fact and conclusion of law, IPI essentially conceded that its 2019 press releases accusing USA Fanter of “lying and inflating fees” was defamatory, but contested the damages demanded by USA Fanter.
The court also noted that USA Fanter presented four witnesses and 28 exhibits to establish its claim of defamation while IPI did not present any witness to contradict any of USA Fanter’s evidence.
“At the bench trial,” the court stated, “IPI conceded that USA Fanter is neither a public figure nor a limited public figure. Therefore, USA Fanter does not have to prove that IPI acted with actual malice to establish its claim. Nevertheless, at the time IPI transmitted its press release to Marianas Variety and Saipan Tribune, IPI acted with more than mere negligence — IPI knew that the statements were false…. IPI admitted these press release statements were false and the trial testimony corroborated these admissions, therefore establishing at the very minimum (and all that is required) — negligence.”
Moreover, the court stated, “since IPI undisputedly wrote and sent the press releases to Marianas Variety and Saipan Tribune for publication knowing of its falsity, the libel is actionable per se….”
“Because USA Fanter is a private figure and its dispute with IPI is a matter of private concern,” the court added, “USA Fanter is entitled to presumed and punitive damages upon showing that IPI acted with negligence in publishing its defamatory statements that were peculiarly harmful to one engaged in construction on Saipan. As established previously, IPI acted negligently.”
According to the court, “IPI unquestionably had ill will when it knew the statements were false and published the two press releases. Although the Court finds that USA Fanter has met its burden to establish that IPI was at least negligent, the fact that IPI not once, but twice communicated false statements with the intent of publishing, demonstrates ill will and the standard of traditional malice is likewise satisfied.”
USA Fanter, a former construction contractor of IPI, sued the casino investor for defamation for making libelous statements in a press release it transmitted to Marianas Variety and Saipan Tribune.
Attorney Samuel I. Mok filed the lawsuit on behalf of USA Fanter while attorney Colin Murphy Thompson represented the plaintiff during the trial.
According to the 17-page lawsuit filed on Feb. 24, 2020, the press release issued by IPI was in reference to certain construction work performed by USA Fanter with respect to the VIP wing and exterior work of IPI’s hotel-casino project in Garapan.
“Specifically, IPI stated that USA Fanter purportedly lied about the actual construction work performed, issued false reports, forged project quantity numbers, forged a payment, fabricated units of material used, fabricated prices and double-billed for work performed,” the lawsuit stated. “IPI’s statements were false and defamatory and that USA Fanter’s business reputation was adversely affected as a result.”
USA Fanter wanted IPI to make a public retraction, but IPI declined, the lawsuit added.
USA Fanter also sued IPI for its failure to pay $2.08 million due the plaintiff for construction work related to the VIP wing and exterior work of the hotel-casino in Garapan.
In February 2021, the federal court ruled in favor of USA Fanter against IPI, saying that the plaintiff was entitled to a mechanic’s lien in the amount of $2.08 million.
According to an online legal dictionary, a mechanic’s lien is “a guarantee of payment to builders, contractors, and construction firms…. The lien ensures that [they] are paid before anyone else in the event of a liquidation.”
