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Court issues writ of execution against IPI

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THE federal court has granted the request of Pacific Rim Land Development LLC for a writ of execution that directs the U.S Marshals Service to seize $6.8 million from bank accounts of Imperial Pacific International on Saipan.

The court recently issued 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.

In her order on Monday, District Court for the NMI Chief Judge Ramona V. Manglona directed the clerk of court to issue a writ of execution in the full amount of the amended judgment on the bank accounts of IPI.

Magistrate Judge Heather Kennedy then issued a writ of execution addressed to IPI.

She told IPI that a notice of execution was issued because of the outstanding judgment.

“It may cause your property to be held or taken to pay the judgment. You may have legal rights to prevent your property from being taken. A lawyer can advise you more specifically of these rights. If you wish to exercise your rights, you must act promptly,” the magistrate judge said.

She said the law also provides “that certain property cannot be taken. Such property is said to be exempt. There may be exemptions that may be applicable to you.”

If IPI has an exemption, she added, “you should demand a prompt hearing from the court. You should come to court ready to explain your exemption. If you do not come to court and prove your exemption, you may lose some of your property.”

As for property belonging to another person, the magistrate judge directed IPI to notify the person so that he/she can file a property claim or other legal papers with the court to prevent the property from being taken or sold at a U.S. Marshals sale to satisfy the debt.

The writ of execution will allow the U.S. Marshals to seize money owned or controlled by IPI from Bank of Saipan, City Trust Bank, Bank of Guam, and First Hawaiian Bank.

Judge Manglona recently denied motion of IPI for stay pending appeal.

She said IPI had not posted a bond or demonstrated that its offered security would adequately protect the rights of Pacific Rim as judgment creditor.

IPI said it cannot post a bond, but added that it is willing to provide other security in the form of $9 million in property leasehold interests.

“IPI has offered no argument as to why the court should waive the normal full bond amount in favor of this alternative security,” Judge Manglona said.

IPI is appealing to the U.S. Ninth Circuit Court of Appeals the decision and order of Judge Manglona that found the casino developer in breach of promissory note with its former contractor, Pacific Rim.

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