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Federal court grants USA Fanter’s $2M mechanic’s lien petition against IPI

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DISTRICT Court for the NMI Chief Judge Ramona V. Manglona on Friday granted USA Fanter Corp. its mechanic’s lien petition against Imperial Pacific International LLC.

After considering the testimony and exhibits presented at a bench trial in June 2020 and the admissions of the parties in their pleadings, Judge Manglona said she finds that USA Fanter is entitled to a mechanic’s lien in the amount of $2,089,345.28.

USA Fanter, represented by attorney Colin Thompson, sued IPI for breach of contract in the amount of $2 million.

Thompson said IPI, which was represented by attorney Stephen Nutting in the lawsuit, did not pay the full amount due to USA Fanter under the construction contract for labor and materials provided for the improvement of the IPI real property.

He said IPI has only paid USA Fanter $300,000, and that the  unpaid balance due is not less than $2,089,345.28.

On Feb. 6, 2020 USA Fanter filed an application under CNMI law for a mechanic’s lien on the IPI casino property.

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.”

IPI said it refused to pay because it claimed that USA Fanter overcharged it for some of the work the contractor performed for the casino-resort project.

In her ruling, Judge Manglona said the most reliable calculation for the value of the work that USA Fanter completed is $2,389,345.28.

“Because IPI only paid USA Fanter $300,000, it still owes $2,089,345.28 for the value of improvements made to the property,” the judge added.

 

 

 

 

 

November 2020 pssnewsletter

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