Imperial Pacific International Faces Another Lawsuit Because Of Unpaid Obligations

Article by : Helen Dec 30, 2020

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The COVID-19 pandemic has negatively impacted many casino operators and other entertainment providers. Many of them are suffering from revenue drops, while some stopped operating at all. There are also a number of companies that are on the verge of bankruptcy. Imperial Pacific International, one of the biggest Chinese investment holding companies, is one of them. After several repeated failures to pay salaries to its employees and even comply with several court orders, it became apparent that the Saipan casino operator has mounting debt. The company has recently admitted to having no cash in its pockets. Therefore, starting a new business relationship with an insolvent company would be as useful as a chocolate teapot.

Unfortunately, a couple of firms previously signed contracts with IPI, looking forward to productive cooperation, but only now realized how worthless their expectations were. Pacific Rim Land Development, a major construction contractor, has already learned that lesson after attempting to force IPI to sell its gaming machines to cover the obligations. Fritz Pacific Project Development Services, a staffing firm, is now realizing it as well. It has already filed a lawsuit against IPI, arguing more than US$745,000 worth of nonpayment for staffing services, fees, interest, and other costs.

Alfredo Cabael, the Fritz Pacific Project Development Services owner, accuses IPI of breaching the workforce contract concluded back in summer 2018. According to Cabael’s complaint, his company provided IPI with construction workers, electricians, crane operators, and other workers, and IPI management approved all the work invoices sent by Fritz Pacific. However, only a small part of those invoices was paid successfully.

Despite endeavors in good faith on the part of Fritz Pacific to resolve the dispute prior to filing this case, IPI refused to honor its obligation to Fritz Pacific.

Before Cabael lodged a complaint against IPI, he had made some efforts but hadn’t succeeded in resolving directly with the company. Respectively he was forced to request $745,303.94 that covers interest, the outstanding debt on the staff services, and some other costs. This complaint is added to many other cases, and, as usual, Ramona V Manglona, a Commonwealth of the Northern Mariana Islands judge, is obliged to examine this case.

The number of proceedings against IPI is pretty high and it would be nice to decide how the company is going to defend itself in court. Currently, IPI is left without an attorney as far as Michael Dotts sent a statement to Marianas Variety. “I have suspended working for IPI. I am still counsel of record for IPI in a number of cases, and I must remain as counsel of record until the court allows me to withdraw,” explained the attorney. The company also claimed that its wallet is empty. In this case, it seems to be difficult to find another attorney who is ready to work for the company on the condition of a future payment.

In addition, Imperial Pacific International hadn’t complied with a court judgment. That’s why the US Department of Labor submitted a notice to the US District Court. Earlier in 2019, the Department ordered IPI to pay $3.3 million in back wages and damages to its employees. “This judgment demonstrates the US Department of Labor’s strong commitment to ensuring employees receive the wages they have earned,” said Wage and Hour Division District Director.